Recommendation from Finance Sector

The scrips in this column have been recommended with a 15-day investment horizon in mind and carry high risk. Therefore, investors are advised to take into account their risk appetite before investing, as fundamentals may or may not back the recommendations. [EasyDNNnews:PaidContentStart]

Sundaram Finance Ltd
CMP - ₹4,779.00
BSE CODE 590071
Volume 6,422
Face Value ₹10
Target ₹5,160 - ₹5,255
Stoploss ₹4,445 (CLS)

S undaram Finance is one of India's leading deposit-taking NBFCs, with a diversified presence across commercial vehicle, passenger vehicle, tractor and Construction equipment finance, along with home finance, Mutual Funds, general insurance, and financial services distribution. The company has built a strong franchise through prudent lending and consistent asset quality. For FY26, AUM grew 16 per cent year-onyear to ₹59,908 crore, while disbursements increased 14 per cent to ₹32,321 crore. Net interest income (NII) rose 21 per cent to ₹3,376 crore, supported by healthy growth in its lending business. To strengthen its funding profile, the company recently announced plans to raise up to ₹1,260 crore through bonds maturing in 3 years and 2 months, carrying a 7.95 per cent coupon, reflecting continued access to the debt market. Backed by a diversified portfolio, stable earnings growth, and disciplined risk management, Sundaram Finance remains well-positioned to benefit from improving credit demand. Considering these positives, we recommend BUY.

PNB Housing Finance Ltd.
CMP - ₹1,109.95
BSE CODE 540173
Volume 52,939
Face Value ₹10
Target ₹1,200 - ₹1,220
Stoploss ₹1,030 (CLS)

PNB Housing Finance is one of India's leading housing finance companies, promoted by Punjab National Bank, offering home loans, loans against property, and other retail mortgage products. The company has strengthened its retail franchise with a focus on affordable and emerging markets. During FY26, retail loan assets grew 16 per cent YoY to ₹86,946 crore, while retail disbursements increased 19 per cent YoY to ₹26,213 crore. In Q4FY26, retail disbursements reached an all-time high of ₹9,020 crore, rising 32 per cent YoY. Asset quality continued to improve, with the gross NPA ratio declining to 0.93 per cent, below the 1 per cent mark, while return on assets (ROA) improved to 2.66 per cent in FY26. Recently, the board proposed seeking shareholder approval to raise funds through the private placement of Non-Convertible Debentures (NCDs), supporting future lending growth. Considering its improving asset quality, strong retail growth, and healthy profitability, we recommend BUY.

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