UBS expects India to enter a strong unsecured credit growth cycle, led by personal loans. The brokerage said this is supported by healthy asset quality across banks and NBFCs, flat unsecured household leverage over the past three years, ample system liquidity and a more risk-on approach among lenders. Here are 4 stocks that the brokerage is bullish on:
Shriram Finance
With a target price of Rs 1,220, the brokerage implies an upside potential of over 21% from current market levels. In the last one year, the stock has delivered a return of over 60%.
Cholamandalam Investment and Finance Company
UBS has assigned a target price of Rs 2,100, which translates to a target price of nearly 20% from current market levels. The stock has remained largely flat, up just 8% in one year.
LT Finance
The international brokerage has assigned a target price of Rs 380 per share, forecasting an upside of 25% from current market levels. The stock has risen over 20% in the last one year.
Poonawalla Fincorp
The international brokerage has pegged the target price at Rs 640 per share, which implies an upside potential of an impressive 36% from current market levels. In the last one year, the stock has declined a marginal 3%.
Disclaimer: This article has been written by Veer Sharma, who is not a SEBI-registered Research Analyst or an Investment Adviser. Veer Sharma and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.
