ET Intelligence Group: Nonbanking financial company (NBFC) stocks have recorded exceptional gains in the past five months. According to an analyst with a leading broking house, NBFCs are likely to see strong business performance given the jump in consumer spending and demand for funds from smaller businesses. The diversified NBFC reported a 40% increase in its asset under management and 54% increase in its net profit for the April-June quarter compared to last year. However, investors need to consider the likely impact on their costs and NIM as they become small banks in FY17. He, however, pointed out that many of these companies currently boast prices that are near their second standard deviation.

Source: Economic Times August 02, 2016 19:41 UTC