Shriram Finance, PNB Housing Finance, L&T Finance — Motilal Oswal Top Stock Picks In NBFCs; Q1 Results Preview

NBFCs Q1 Results Preview: Shriram Finance, PNB Housing Finance, L&T Finance , Home First Finance remains Motilal Oswal's top stock pick in the space

Cost of borrowings for most NBFCs has seen a very minor sequential decline because of the repricing of EBLR borrowings.

(Photographer: Radhakisan Raswe/NDTV Profit)

Large housing finance companies are facing heightened competition, particularly from PSU banks that are offering home loans at significantly lower rates. Given their inability to match these rates without compromising yields, many large HFCs are opting to forego such business.

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

We estimate ~14%/13%/8% YoY growth in net interest income/pre-provision operating profit/PAT in 1QFY26 for our non banking financial companies coverage universe.

Excluding NBFC-MFI, we estimate ~12% YoY growth in PAT for our coverage universe.

Our preference is for housing financiers, including select affordable HFCs and diversified lenders (who have navigated the unsecured credit cycle and are now looking to grow their unsecured loan book again).

Our top picks in the sector are: Shriram Finance, Home First, PNB Housing Finance, and L&T Finance.

Click on the attachment to read the full report:

Motilal Oswal NBFCs Q1FY26 Results Preview.pdf
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