Financial powerhouse Jefferies has spotlighted a quartet of non-banking financial companies (NBFCs)—Bajaj Finance, Cholamandalam Investment, Aditya Birla Capital, and Shriram Finance—as the top contenders to outperform broader market indices and traditional banking stocks.
According to the firm’s latest outlook, these entities are well-positioned to capitalize on robust earnings cycles and a notable strengthening of asset quality. While market valuations may remain steady, Jefferies anticipates that sustained earnings per share (EPS) growth will serve as the primary engine for price appreciation.
The brokerage suggests that these firms are effectively managing cyclical headwinds, allowing them to carve out a distinct advantage over commercial lenders. Analysts expect this momentum to persist even as the Nifty faces broader economic fluctuations.
For investors, this shift underscores a growing preference for specialized credit providers that demonstrate superior risk management. Jefferies notes that the projected upside of up to 20% is supported by healthy loan books and strategic diversification across retail and corporate credit segments.
