NBFCs Q3 Results Preview - Mixed Bag But Margins To Sustain: Prabhudas Lilladher

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. .Prabhudas Lilladher Report.We expect non-banking financial companies under our coverage universe to report mixed earnings, given strong assets under management growth of ~4.25% QoQ led by vehicle financiers (commercial vehicle upcycle) and retail loans and slight moderation in margins due to rising cost of funds. However, as a whole we expect NBFC’s under our coverage universe to report margins ~10.19% (versus 10.20% in Q2), as strong disbursements and yield transmission cushions rising cost of funds. We expect better asset quality and flat credit cost QoQ, as collections have reached pre-Covid levels for most companies. We expect vehicle financiers like Shriram Finance Ltd. and Cholamandalam Investment and Finance Company Ltd. to maintain their momentum (as shown in the last quarter), given strong commercial vehicle demand. Bajaj Finance Ltd. is expected to report robust 5.7% QoQ AUM growth along with pristine asset quality, as their omni channel strategy is paying rich dividends towards customer acquisition (3.1 million new customers in Q3)..Click on the attachment to read the full report:.Banks, HFCs Q3 Results Preview - NIM Expansion To Be Lower Compared To Q2: Prabhudas Lilladher.DISCLAIMERThis 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.

NBFCs Q3 Results Preview - Mixed Bag But Margins To Sustain: Prabhudas Lilladher

We expect NBFCs to report mixed earnings, given strong AuM growth led by vehicle financiers (CV upcycle) and retail loans.

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