Priyanka Tiwari
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Suspense crime, Digital Desk : Mumbai, India – Leading brokerage firm Motilal Oswal has released a bullish report on India's Non-Banking Financial Company (NBFC) sector, singling out two public sector powerhouses as top investment picks. The firm has issued a "BUY" recommendation for both REC Ltd. and Power Finance Corporation (PFC), projecting significant potential returns for investors.
The brokerage's confidence is rooted in the strong financial health and consistent performance of these two government-backed power financiers. Motilal Oswal highlights their robust loan growth, stable asset quality (meaning they have a low percentage of bad loans), and attractive valuations, suggesting that the stocks are a good value at their current market prices.
Furthermore, both REC and PFC are seen as key beneficiaries of the Indian government's sustained push to develop the nation's power and infrastructure sectors. As the primary lenders for power projects across the country, they are uniquely positioned to capitalize on this long-term growth story.
Here are the specific recommendations from Motilal Oswal:
REC Ltd. (BUY)
Target Price: ₹580
This target represents a potential upside of around 18% from its current trading levels.
Power Finance Corporation (PFC) (BUY)
Target Price: ₹600
This target suggests a potential return of approximately 17% from its recent price.
This positive outlook from a major brokerage firm could further boost investor sentiment towards these two well-regarded PSU stocks.
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