Shriram Finance deal: Will it bring the good days back? 5 NBFC stocks with a modest upside potential between 7% & 19%

Read the headline, it says modest upside potential. Because, if one looks at analyst estimates, they are only moderately positive about the NBFC space. This was the case even a few months back. Since then, stocks like Shriram Finance have moved up sharply. Yes, it’s because a big stake deal has happened. But, the deal underlines the interest in the lending space, though with some caveats. Either the company should be reasonably okay in terms of its books and franchise network (even if the promoter is not so good). Or, both the business and promoter should be strong. The question now is: Will the NBFC sector, which was a market favourite till 2018, get back its mojo on the street?