6 Financial Space Stocks to Buy That Can Offer Good Yields
|Company Name||Call||Current market price||Target price|
|Bajaj Finance||To buy||7344||8953|
|Investment Cholamandalam||To buy||736||792|
|L&T finance||To buy||78||88|
|Muthoot Finance||To buy||1057||1431|
|Shriram Transportation||To buy||1190||1521|
Buy Cholamandalam stock for a price target of Rs 792
According to Prabhudas Lilladher, the company is expected to post strong QoQ AUM growth of 5% on the strength of M&LCV, used vehicles and consumer/SME loans. “Truck utilization levels have improved and stabilizing fuel prices have led to increased profitability for operators. strong growth in a high yield portfolio. Recommend “BUY” at the target price of Rs 792,” the company said.
Buy Manappuram Finance for a target price of Rs 122
Manappuram Finance has seen a sharp correction and is 56% off its 52-week high and trading at an attractive valuation of 0.8x/0.7x FY24/FY25 P/ABV. Margins should improve as we expect yields to continue to rise to 19.7% from 19.4% in Q1’23.
“Manappuram’s microfinance business is also expected to see improved performance through strong disbursements and asset quality. should start to kick in. We believe the worst is over for Manappuram Finance and the company. It is now one of our top picks. Recommend BUY at TP of Rs 126 (TP unchanged),” Prabhudas Lilladher said in his report.
Buy Bajaj Finance, with a target price of Rs 8953
The brokerage has set a price target of Rs 8,953 on shares of Bajaj Finance. “According to the company’s business update, Q2’23 AUM growth was very strong at 7% QoQ (above our expectation of 6.5%). September 30, 22 was 62.9 million (+19.1% YoY/+4.3% QoQ) New customers for Q2’23 were 2.6 million (-0.3% QoQ Both of these metrics continued to show strength and the company was able to maintain its execution rate achieved in Q1’23. Deposit momentum was also extremely strong and posted growth of 15.5% QoQ, at a time when there was intense competition for deposits between banks and NBFCs, the omnichannel platform will provide a fully integrated and seamless solution,” the brokerage said.
Auto finance stocks will do well
Prabhudas Lilladher expects vehicle financiers like Shriram Transport and CIFC to maintain momentum (as reported last quarter) given the strong demand for VC. “Bajaj Finance is expected to record robust 7% QoQ AUM growth along with impeccable asset quality as their omnichannel strategy pays rich dividends on customer acquisition. market leadership, healthy capital and provision buffers. We consider Bajaj Finance (BAF), Cholamandalam Investment & Finance Corporation (CIF) and Manappuram Finance Ltd (MGFL) as our top picks in the NBFC space,” said the brokerage house.