Religare’s Research Report On Best CV Lenders To Buy

Recovery in demand, asset quality and margins could be sharper for NBFCs this time around given that CV volumes were severely affected in the last 2-3 years. As the CV recovery gathers pace, we expect FY17 to be a bumper year for CV/CE (commercial vehicle/construction equipment) lenders.

SHTF is our top pick in the sector; we also initiate coverage on CIFC and SCUF with BUY ratings. We believe rural/semi-urban auto (ex-CV) lenders are in mid-downcycle and their profitability is likely to remain under pressure – maintain HOLD on MMFS.

Religare_Report_CV_Lenders_March_15