1 week ago
Mirae Asset Sharekhan Recommends 11 BFSI Stocks
Mirae Asset Sharekhan studied financial companies after their first-quarter results for FY27.
It said many non-bank lenders had a strong start.
Their loans grew, profits increased and fewer losses were expected from bad loans.
Housing, vehicle and gold lenders were among the stronger areas.
Life insurance companies also did well, especially with protection products.
General insurance companies had a more difficult quarter.
The brokerage recommended 11 named stocks, despite one part of the article saying 13.
It also warned that a proposed Reserve Bank of India rule on revolving credit could hurt some lenders.
Mirae Asset Sharekhan recommends 11 BFSI stocks after strong Q1 FY27 results across several lending segments.
Diversified financiers recorded 25% year-on-year AUM growth and 33% year-on-year PAT growth, according to the brokerage.
The brokerage expects improved asset quality, lower credit costs and cleaned-up balance sheets to support NBFC profitability.
Insurance results were mixed: life insurers benefited from protection products, while general insurers faced profit pressures.
The recommendations include five NBFCs, four insurers, Nippon Life India Asset Management and Bajaj Finserv, although the article also refers to 13 stocks.
- Who
- Mirae Asset Sharekhan and the 11 recommended BFSI companies.
- What
- A long-term buy list covering NBFCs, insurers, an asset manager and a holding company.
- Where
- The Indian banking, financial services and insurance market.
- When
- After the Q1 results of financial year 2026-27.
- Why
- The brokerage cited strong loan growth, higher margins, lower credit costs and improving asset quality, while noting risks from a proposed revolving-credit restriction.
Positive outlook
Risks and mixed results
NBFC performance
Positive outlook
Mirae Asset Sharekhan said faster loan growth, expanded margins, lower credit costs and improved asset quality supported a strong start to FY27.
Risks and mixed results
The brokerage expects temporary softness in Q2 and warned that a proposed ban on revolving credit could affect lenders that depend on such facilities.
Insurance performance
Positive outlook
Life insurers delivered strong results, driven by protection products.
Risks and mixed results
General insurers faced profit pressure from a slump in the fire segment and court-mandated reserve adjustments.
Key facts
- Brokerage
- Mirae Asset Sharekhan
- Recommended stocks
- 11 stocks are listed in the article; another passage refers to 13 stocks.
- Diversified financier AUM growth
- 25% year-on-year and 6.6% quarter-on-quarter
- Diversified financier PAT growth
- 33% year-on-year and 10% quarter-on-quarter
- Margin change
- Net interest margin increased by 21 basis points year-on-year and 6 basis points quarter-on-quarter as a percentage of AUM.
- Strong segments
- Diversified lenders, vehicle financiers, gold-loan providers and affordable housing finance companies.
- Key risk
- The Reserve Bank of India's proposed ban on revolving credit could disproportionately affect some lenders and segments.
Quotes
Mirae Asset Sharekhan
Brokerage firm providing the BFSI sector analysis and stock recommendations
“Diversified lenders, vehicle financiers, and gold loan providers led profitability, while HFCs (housing finance companies) improved and power financiers lagged. Overall, credit costs fell, and asset quality improved.”
livemint.com
“Life insurers delivered strong numbers, driven by protection products, but general insurers faced profit hits from a slump in the fire segment and court-mandated reserve adjustments.”
livemint.com
Sources
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