Brokerage firm Mirae Asset Sharekhan has issued buy recommendations on 11 stocks from the banking, financial services, and insurance (BFSI) space following the Q1 results of financial year 2026-27 (FY27). According to the brokerage's recent report, NBFCs and asset management companies reported healthy numbers, while insurance company results were mixed. The recommendations span across diversified lenders, housing finance companies, life insurers, general insurers, and asset management companies.
The NBFC sector began FY27 strongly, driven by robust loan growth across diversified lenders, gold financiers, vehicle financiers and affordable housing finance companies. As reported by Mirae Asset Sharekhan, diversified lenders reported robust AUM growth of 25% year-on-year and 6.6% quarter-on-quarter, with pre-provision operating profit rising 27% YoY and 8% QoQ. The sector expanded net interest margin by 21 basis points YoY and 6 basis points QoQ due to favourable product mix, while credit costs fell and asset quality improved significantly. Diversified financiers achieved PAT growth of 33% YoY and 10% QoQ, driven by lower credit costs and improved profitability metrics.
Life insurers delivered strong numbers driven by protection products, while general insurers faced profit hits from a slump in the fire segment and court-mandated reserve adjustments. According to Mirae Asset Sharekhan, life insurers showed robust performance, though general insurers experienced challenges from specific market segments. The mixed results reflect different sector dynamics and regulatory impacts on insurance companies during the quarter.
The brokerage firm's top picks include Can Fin Homes with a target price of ₹1,100 (36% upside potential), L&T Finance at ₹380 (20% upside), and Bajaj Finance targeting ₹1,250 (16% upside). For insurance stocks, HDFC Life Insurance leads with a ₹715 target price (29% upside), followed by ICICI Prudential Life at ₹660 (29% upside). The recommendations also include Nippon Life India Asset Management with a ₹1,315 target price (5% upside) and Bajaj Finserv at ₹2,380 (19% upside).
The passive investment landscape is expanding beyond traditional broad-market indices, with 64% of new mutual fund launches in July 2026 being passive products according to AMFI data. During the month, 25 new schemes completed allotment, with 16 of these being passive funds - including index funds and ETFs. This trend reflects investors' increasing preference for sector-specific and strategy-based exposure, allowing them to target areas like banks, metals, cement, automobiles, insurance, and momentum without directly selecting individual stocks. The shift demonstrates how passive investing is evolving from simple market participation to focused sector and strategy-based investments.
