NBFC stocks: Should you buy Bajaj Finance, Bajaj Finserv, LIC Housing Finance, Shriram Finance now? Here is what Nomura says

NBFC stocks to buy: Is it the right time to enter non-banking financial company (NBFC) stocks? If so, which is the best NBFC to buy at the current juncture in the share market? Nomura has reiterated its cautious view on NBFCs, a space the foreign brokerage believes to be on a slippery slope with growth drivers at risk. However, analysts at Nomura expect FY25 to be a reset year for NBFCs.

Any repo rate cut in the first half of the financial year will be positive for NBFCs in terms of cost of funds and net interest margins in the following two quarters, Nomura analysts wrote in a research report.

Shriram Finance and Five-Star Business Finance remain the brokerage's top picks in the NBFC basket.

Here's how Nomura views some of the key stocks in the NBFC sector:

Bajaj Finance share price target

Nomura has maintained a 'buy' rating on the Pune-headquartered non-banking financial company, but reduced its target price by Rs 800 to Rs 7,200 per share.

Bajaj Finserv share price target

The brokerage has retained a 'buy' call on Bajaj Finserv but lowered its target for the stock to Rs 1,850 from Rs 1,900.

Shriram Finance share price target

Nomura has retained a 'buy' rating on Shriram Finance and raised its target for the stock by Rs 200 to Rs 2,900 per share.

Five-Star Business Finance share price target

Nomura has maintained a 'buy' call on the NBFC but cut its target to Rs 880 from Rs 900 per share. 

CreditAccess Grameen share price target

The brokerage has maintained a 'buy' rating on CreditAccess Grameen with a reduced target of Rs 1,550 per share instead of the Rs 1,990 per share earlier.

LIC Housing Finance share price target

Nomura has kept a 'buy' call on LIC Housing Finance but reduced its target for the stock by Rs 20 to Rs 720 per share. 

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