ADVERTISEMENT

NBFCs Well Capitalized For Asset Quality Stress; Valuation To Rise When Growth Clarity Emerges: Nirmal Bang

NBFCs Well Capitalized For Asset Quality Stress; Valuation To Rise When Growth Clarity Emerges: Nirmal Bang

A cashier counts Indian one hundred-rupee banknotes in New Delhi, India. (Photographer: Prashanth Vishwanathan/Bloomberg)
A cashier counts Indian one hundred-rupee banknotes in New Delhi, India. (Photographer: Prashanth Vishwanathan/Bloomberg)

BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Nirmal Bang Report

We are positive on auto finance non-banking financial companies due to following factors -

  1. The asset quality stress or restructuring requirement is lower than initially anticipated; large provision buffers have already been built up in case of downside scenario.

  2. Liquidity buoyancy providing access to lower cost of funds for NBFCs with strong parentage.

  3. Positive data points indicating that the commercial vehicle cycle is on the cusp of a recovery.

Click on the attachment to read the full report:

Nirmal Bang Finance Sector - 29 December 2020.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.