NBFC shares fall 50%, better returns


MUMBAI: In the shares of NBFC, the stock has seen a huge drop in their shares this month due to the price hike. The situation is that 50 per cent of their shares have fallen, due to which the investors are facing huge losses.

Statistics show that nearly 60 stocks of NBFCs have fallen and some of them have fallen to 50 percent. In this, Deewan housing financing fell 47 percent, Reliance Capital fell 28 percent, and Bajaj Finance dropped 16 percent. Recently, the decline in debt market liquidity has forced the analysts to review the strong NBFC again.

According to the report of Kotak Institutional Equities, we do not see any risk of NBFC risk in the near future. According to analysts, the business models of well-operated NBFCs are quite good and it works well in all the cycles, in which retail segments specifically focus. The focus of Kotak on NBFCs is that of LIC Housing Finance, PFC and REC etc.

Talking about HDFC, it has been suggested by analysts to buy at the target of Rs 2,020, which can go up to 10% from here. This bond is a big company in the market, which takes 54 per cent of the borrowed from NCD and CP. Similarly LIC Housing is expected to return 32 per cent and it has been advised to buy it at a target of Rs 580, which is currently trading at Rs 438. While 17% of the profit is expected in L & T Finance, the 31% return is expected in Magma Fincorp.

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