Top five NBFCs of the month

Non Banking Financial Companies have fared well so far. Their contribution to the economy has grown in leaps and bounds from 8.4 per cent in 2006 to14 per cent in 2016. With the ongoing stress in the public sector banks due to mounting bad debt, their appetite to lend (especially in rural areas) is only going to deteriorate, thereby providing NBFCs with the opportunity to increase their business.

The success of NBFCs can be clearly attributed to their better product lines, lower costs, wider and effective reach, strong risk management capabilities to check and control bad debts, and better understanding of their customer segments.

Owing to this success story, we have analysed last one month's performance of NBFCs in terms of returns. We have 136 NBFCs. Out of 136 companies, 58 companies have given returns of more than a per cent in last month and 31 companies have rewarded investors with 10 per cent and above returns.

We have picked up our top five performers over the last one month. They are- NEIL Industries (65.30%) ,  Mahanivesh (India) (51.70%) , Motor & General Finance (34.16%) , Oscar Investments (32.62%) and Muthoot Finance (31.09%). These companies have given a robust performance in last one month. There are many names in the queue with good numbers among NBFCs. Let's see, how these companies manage to maintain the same pace going forward.