Morgan Stanley remains positive on NBFCs and MFIs following the RBI’s measures aimed at easing the cost and access to funding for both borrowers and intermediaries. These regulatory changes are expected to boost investor sentiment and support earnings growth across the NBFC sector over time.
Morgan Stanley sees Aditya Birla Capital (ABCL) as the biggest beneficiary, maintaining an Overweight rating on the stock. Additionally, PNB Housing Finance (PNBHF), Shriram Finance (SHFL), and Bajaj Finance (BAF) are also top picks, with Overweight ratings due to their strong market positioning and growth potential.
The brokerage believes that the favorable funding environment created by the RBI’s policies will allow these NBFCs to improve their cost structures and expand their lending capabilities, thereby driving long-term profitability and growth.
