NBFCs Q3 Results Preview - In A Healthy Zone, Except For The Visible NIM Compression: Motilal Oswal
We expect our coverage universe of NBFC, lending financials to deliver 13%/8% /15% YoY growth in NII/PPoP/PAT, respectively, in Q3
BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
We expect our coverage universe of non-banking financial companies – lending financials to deliver 13%/8% /15% YoY growth in net interest income/pre-provision operating profit/profit after tax, respectively, in Q3 FY23.
While we forecast a strong QoQ earnings growth for LIC Housing Finance Ltd., we estimate a QoQ decline for Manappuram Finance Ltd. (owing to muted gold loan growth) and Mahindra and Mahindra Financial Services Ltd. (owing to net interest margin compression and higher write-offs).
We expect disbursements to remain healthy across vehicle financing, driven by strong demand and sectoral tailwinds. Vehicle financiers such as Cholamandalam Investment and Finance Company Ltd./Shriram Transport Finance Ltd. are also benefitting from strong momentum in non-vehicle product segments.
We expect a ~16% YoY/~4% QoQ loan growth in Q3 FY23 for our coverage universe. Although the gold loan demand has slightly picked up in the lower ticket size (less than Rs 100,000), the banks/gold loan fintechs and recent NBFC entrants continue to remain aggressive.
Click on the attachment to read the full report:
This report is authored by an external party. BQ Prime 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 BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.