Feb 24 2024, 08:28
Financial services stocks with "Buy" rating which may deliver 12-30% returns:
In the last few weeks, just because one bank has underperformed and was able to drag the market lower, that does not mean everything in one of the most important sectors of the economy, which is BFSI, is bad. This distinction needs to be made because in BFSI space every segment has a very different operating matrix and hence the growth path. So, while banks might be under pressure, AMCs have been doing well.
Three years of underperformance when topped by a decline of more than 10% in stock price which erodes 1 lakh crore in market capitalization is surely going to create sentiment that all is bad with a bank. Given it has been the biggest of wealth creators it is bound to have rub off on other players in the sectors which may not be bank but because they are part of the financial service sector they tend to get clubbed together. But the fact is that just because one bank is facing headwinds does not mean the whole financial sector is facing the same.
This distinction needs to be made, because in BFSI space every segment has a very different operating matrix and hence the growth path. So, while banks might be under pressure, AMC's have been doing well. Similarly, life insurers are under pressure but the general insurance companies have done well. So rather than broad brush, have a look at companies individually for better decision making as analysts are bullish on many companies in the financial services space.
List of NIFTY Financial Services (ex-Banks) stocks with 'Strong Buy/Buy' recommendations
NIFTY Financial Services ex-Bank Stocks
Upside Potential - Feb 23, 2024
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AA FONT
R
Company Name
Bajaj Finance
Avg Score
7
Reco
Buy
Analyst Count
29
Upside Potential S
30.2
Inst Stake S
22.9
Market Cap Type
Large
MarketCap Rs Cr
412,466
Company Name
HDFC Life
Avg Score
5
Reco
Buy
Analyst Count
30
Upside Potential%
28.4
Inst Stake%
23.9
Market Cap Type
Large
MarketCap Rs Cr
123,630
Company Name
Max Financial Services
Avg Score
8
Reco
Buy
Analyst Count Upside Potential%
16
18.9
Inst Stake
82.7
Market Cap Type MarketCap Rs Cr
Large
32,770
Company Name
Aavas Financiers
Avg Score
5
Reco
Buy
Analyst Count
19
Upside Potential S
18.5
Inst Stake%
48.1
Market Cap Type
Mid
MarketCap Rs Cr
11,545
Company Name
Cholamandalam Investment & Finance Co
Avg Score
8
Reco
Buy
Analyst Count
33
Upside Potential%
16.4
Inst Stake%
32.2
Market Cap Type
Large
MarketCap Rs Cr
90,834
Company Name
Aditya Birla Capital
Avg Score
8
Reco
Strong Buy
Analyst Count
Upside Potential%
Inst Stake
Market Cap Type
9
15.4
8:1
MarketCap Rs Cr
Large
47,943
Company Name
REC Limited
Avg Score Reco
7
Buy
Analyst Count
6
Upside Potential%
15.0
Inst Stake
19.9
Market Cap Type
Large
MarketCap Rs Cr
121,457
Company Name Avg Score
Muthoot Finance
9
Reco
Buy
Analyst Count
20
Upside Potential%
13.7
Inst Stake
19.2
Market Cap Type
Large
MarketCap Rs Cr
53,635
Company Name Avg Score
ICICI Prudential Life
5
Reco
Buy
Analyst Count
31
Upside Potential S
13.2
Inst Stake%
18.0
Market Cap Type
Large
MarketCap Rs Cr
74,641
Company Name
Manappuram Finance
Avg Score
10
Reco
Buy
Analyst Count
17
Upside Potential%
12.1
Inst Stake%
27.9
Market Cap Type
Mid
MarketCap Rs Cr
15,405
source:et
Feb 24 2024, 08:28