Business · India Bureau
Jefferies Recommends Top NBFC Picks As Auto Loan Segment Shows Resilience
Investment bank Jefferies has identified select non-banking financial companies as attractive investment opportunities, citing continued strength in the auto lending segment. The brokerage has favoured diversified NBFCs over those with concentrated exposure to single business verticals.
LSN India ·
Jefferies has released its latest recommendations on the non-banking financial company sector, highlighting stocks positioned to benefit from sustained demand in auto lending while broadening revenue streams across multiple segments. The investment bank's analysis indicates that vehicle financing remains a key growth driver for India's NBFC sector despite economic headwinds.
Beyond auto loans, Jefferies expects other lending segments to play an increasingly important role in overall earnings growth. The brokerage has signalled preference for NBFCs with diversified business models rather than those dependent on a single lending category, reflecting a strategic shift towards reducing concentration risk in the sector.
The recommendation comes as India's non-bank lenders continue navigating a competitive lending environment and evolving regulatory requirements. Auto financing has historically been a cornerstone of NBFC operations, though rising fuel prices and vehicle costs have periodically impacted demand cycles.
Jefferies' focus on diversified business models aligns with broader industry trends, as several major NBFCs have expanded into personal loans, housing finance, and corporate lending to reduce dependence on cyclical auto segments. The brokerage's stock selection reflects these portfolio positioning preferences.