Anil Singhvi: NBFCs – Valuation & Stock Picks
- Non-banking financial companies (NBFCs) present compelling investment opportunities due to attractive valuations, according to market analysis.
- The expert highlighted that the RBI's moves will enable NBFCs to secure loans at lower rates, addressing liquidity concerns and spurring credit growth.
- According to the analysis, some NBFCs are trading at a price-to-book value of less than one, while others are below two, signaling potential undervaluation in the financial sector.
Uncover exciting opportunities in the financial sector wiht expert insights on NBFCs! This analysis details attractive valuations in select NBFC stocks, boosted by recent repo rate and CRR reductions. Discover how the RBI’s easing regulations are reshaping the landscape for non-banking financial companies, perhaps fueling credit growth. News Directory 3 delivers a comprehensive look at promising small-cap and PSU NBFCs, including those trading at price-to-book values below one. Are you ready to capitalize on these undervalued assets? Explore the potential of these financial sector investments, and discover what’s next for the NBFC market.
NBFC Stocks Offer Attractive Valuations, Says Expert
Updated june 10, 2025
Non-banking financial companies (NBFCs) present compelling investment opportunities due to attractive valuations, according to market analysis. Recent repo rate cuts and CRR reductions by the Reserve Bank of India (RBI) are expected to further boost the sector.
The expert highlighted that the RBI’s moves will enable NBFCs to secure loans at lower rates, addressing liquidity concerns and spurring credit growth. Moreover, valuations for specific NBFC stocks are deemed highly attractive, with the RBI gradually easing regulatory curbs.
According to the analysis, some NBFCs are trading at a price-to-book value of less than one, while others are below two, signaling potential undervaluation in the financial sector.
larger NBFCs like Manappuram Finance and AB Capital are trading at reasonable valuations, while smaller companies show even greater promise, the expert noted.
Book value reflects a company’s net worth, calculated by subtracting total liabilities from total assets. It represents the value available to shareholders if the company were to be liquidated.
Several small-cap NBFCs, including SG Finserv and Northern Arc, are currently trading at attractive valuations, the analyst noted. PSU NBFCs also present good valuation opportunities.
| Company | Book Value |
|---|---|
| IIFL | 1.4 |
| AB Capital | 2 |
| L&T Fin | 1.8 |
| PEL | 1 |
| Manappuram | 1.7 |
| SG Finserv | 0.3 |
| Fusion Micro | 2.1 |
| Indo star | 1.3 |
| Northern Arc | 1.0 |
| LIC Housing | 0.9 |
| PNB Housing | 1.7 |
| Can Fin Homes | 2.1 |
What’s next
Investors may watch for further policy adjustments and financial results to gauge the sustained performance of NBFCs and their potential for growth in the financial sector.