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Stock Analysis, IPO, Mutual Funds, Bonds & More

10 NBFC stocks that have fared well despite crisis in the sector

While the default crisis has led to a mayhem in debt funds, even equity funds are facing the heat due to the crash in NBFC stocks.

Many equity and hybrid funds hold NBFC stocks, which have seen their share prices recede by up to 88% in the past year. The worst affected, DHFL, has crashed nearly 88% from its 52-week high of Rs 691, wiping out more than Rs 16,000 crore of investor wealth.

Indiabulls Housing Finance closed the week nearly 50% lower than its 52-week high of Rs 1,397. The stock has lost more than Rs 19,000 crore in market cap in the past year. The 10 biggest NBFC losers have collectively wiped out more than Rs 1 lakh crore of investor wealth in the past year.

The list does not include smaller stocks that have witnessed bigger declines during this period. SREI Infrastructure Finance has fallen by 68%, Reliance Home Finance has dropped by 65%, Centum Capital dipped by 49% and Rane Holdings by 41% in the past year.

10 NBFCs saw mkt cap crash by Rs 1 lakh cr in a year...
NBFC stocks

...but well-managed NBFCs added Rs 2.05 lakh cr
NBFC stocks

Mutual funds have reduced their exposure to NBFC stocks after the IL&FS blowout, but not enough to fully contain the damage. Fifty-eight equity schemes held more than two crore shares of DHFL in April 2018.

By April this year, this was down to 37 lakh shares held by 11 schemes. But many other troubled stocks are still a part of equity fund portfolios.

Exposure to Indiabulls Housing Finance was down marginally from 1.53 crore shares (held by 82 schemes) in April 2018 to 1.21 crore shares (held by 60 schemes) in April 2019.

At the same time, some NBFCs have not been affected by the default crisis. These well-managed companies have not only been able to avoid the meltdown, but also churned out extraordinary returns.

The 10 biggest gainers have added Rs 2.05 lakh crore to investor wealth in the past year. Bajaj Finance alone saw its market cap shoot up 60% by Rs 75,679 crore.
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