In this investment case, we focalize our attention on India’s NBFCs (Non-Bank Financial Companies), which should continue benefitting from the strong growth momentum in India. We have selected the following NBFCs – Shriram Finance Ltd. (SHFL), Muthoot Finance Ltd. (MUTH); Manappuram Finance Ltd (MGFL). We like the fundamentals of the three companies, but we think that Shriram and Muthoot are more conservative investments compared to Manappuram, where the growth in its non-gold book has been substantial and could potentially impact asset quality in the future. In the following pages, you will find some more information about these companies and the rationale sustaining our positive view on these credits. Beware that liquidity on these kind of bonds could be lower compared to more traditional bonds and better known EM issuers.
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