Daptardar cautioned that while credit costs are beginning to ease, it is still premature to conclude that asset quality issues are fully resolved.
Loan growth, especially in microfinance and credit cards, continues to face pressure due to evolving regulatory changes. Many of these players, she said, are being forced to go “back to the drawing board” to recalibrate systems and processes, leading to short-term stress.M&M Financial’s update reflects this broader trend of a typically soft first quarter for NBFCs. “Especially for CV financiers, the challenges will continue to persist through the year,” she noted. Daptardar pointed out that the broader NBFC space continues to grapple with sticky asset quality in the unsecured and microfinance segments, which will weigh on near-term earnings.
Despite the supportive rate cycle, Daptardar believes NBFCs may not outperform banks just yet. Only those with high credit ratings and diversified profiles are expected to benefit meaningfully in the near term.
Among PSU financiers, she is upbeat on HUDCO and IREDA. “Capex-driven stocks will gradually come back into reckoning. We are estimating around 25% AUM CAGR for the next two to three years,” she said, citing continued momentum in infrastructure and power finance, supported by relaxed provisioning norms.
On HDB Financial Services, Daptardar struck a bullish tone. Despite not having formal coverage, she sees strong potential in the company due to its granular and diversified retail loan book and wide semi-urban footprint. “We believe 19–20% AUM CAGR and RoEs closer to 18–19% are imminent. That, juxtaposed with their high credit rating and strong parentage, definitely puts HDB among the top-tier NBFCs,” she said.
