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This website is purely ACADEMIC in nature and NOT a stock market recommendation service or a tip provider. No live data or feeds are provided and all information is historic only. Information is provided for ease of understanding for the purpose of learning. Accuracy of definitions etc is not mantained. I am not a SEBI or IRDA registered.
Understanding NBFC stocks
Non-Banking Finance Companies are companies involved in finance business just like banks.
However, they have some restrictions in what they can do (and cannot do).
We can find a variety of companies that are into money business (non-banking).
Let us see some sub-sectors within the NBFC sector:
- Personal / Business Loans (Bajaj Financials)
- Consumer Loans (Capital First, Bajaj Finserv)
- Microfinance (Bharat Financial, Ujjivan)
- Auto / Vehicle Finance (Shriram Transport)
- Gold Finance (Manappuram, Muthoot)
- Project Finace (SREI Infra)
- Power Finance (REC, PTC India Finance)
- Tourism Finance (Tourism Finance Corp)
- Financial Holding companies (IIFL Holdings, Tata Investment Corp)
- Stock-broking / brokerage companies (Edelweiss, Moilal Oswal, Stampede)
- Merchant banking / Lead managers (JM Financial)
- Securities business (PNB Gilts)
- Insurance Companies (ICICI Prudential, Max)
- Stock Exchanges (MCX)
- Mutual Fund AMC (Shriram AMC)
- Money Exchangers (Weizmann)
- Leasing & Lending (Amulya Leasing)
- Asset Reconstruction (Ojas)
Spend time to understand the business model of each of the above sub-sector.
- Understanding Logistics stocks
- Analysing Annual Reports of companies
- Qualitative factors of company in stock investing
- Quantitative factors of company in stock investing
- Market Capitalization
- Sector Diversification (Rule 21)