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)

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

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

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