The Indian finance sector continues to mark a new victory year on year. The ongoing crisis has forced almost every sector to bear hefty losses.
But a finance company in India enjoys profits and growth. However, it is believed that an increased focus on digital infrastructure primarily kicks off the growth.
Indian private and non-private banks are refining their banking facilities. Getting loans and banking facilities is a matter of a few minutes now.
Meanwhile, some of the best finance stocks to buy are in the limelight. Investors’ eyes are glued onto some notable finance companies doing an exceptional job in the industry.
If you are also looking for some trusted offers, read on. Here is the list of best stocks from the finance sector you should look out for this year.
Know About Finance Sector In India
Before we reveal the names of the top finance companies in India to lighten up the eyes of investors with their heavy returns, let’s expand our introduction to the country’s finance sector.
Presently, the Indian finance sector is witnessing a stable growth of 8.5% P.A.
The industry is already garnering a great deal of interest and excitement for itself. After all, no other sector has been as stable in the entire Asian region as the Indian finance sector.
If you haven’t done it before, do it now! Explore the best finance sector stocks to buy and invest in.
Top 10 Finance Companies In India
India is the home for a large number of financial service companies, and this article will name the top 10 amongst them.
The table above shows you a quick glimpse of each finance company we bring you here. Each finance giant rocks the stock market with its explosive growth.
Mainly, the past five years’ performance of all these banking and non-banking sectors are notable. If you were searching for the best finance shares in India, it’s no surprise they are available in the list below.
So let’s know more about each share in brief. We have tried to keep the shortlisting process easy for you in the article.
Maybe 100% reliable financial services shares to buy are hard to find. Still, we have some excellent names available you may set higher expectations from.
HDFC – Best Home Finance Stocks
HDFC– Housing Development Finance Corporation Limited is capturing fame in the nation for its multi-tier services in home financing. In short, HDFC is one of the biggest housing finance providers in the country.
The company is primarily known for its notable presence in the Indian banking system, making it the largest private-sector financial firm in the nation.
Its second branch, HDFC Bank, is the 10th largest bank globally (from a market capitalization perspective). Set up in 1977, HDFC is the no.1 home loan service providing firm and the best home finance stocks.
The company employs more than 3200+ people demonstrating its significant contribution to India’s economy.
Products & Services
Mentioned below are the major products and services offered by HDFC.
- Home Loans
- Non-Housing Loans
- NRI Housing Loans
- Refinance
- Other Housing Loans
Why invest in this stock?
HDFC is known for its instant home loan facilities. Over the past few years, the private firm has grown into a preferred housing finance provider.
But now, investors are also discovering a great potential in HDFC, claiming it the best finance shares to buy. From 2017 to the end of 2022, the Limited Corporation has yielded a 72.25% return on investment.
However, the share is almost doubling investors’ money after forming a Lower Low at 1516 on May 22, 2020. It is a clear indication that HDFC will stay the strongest player in the Indian finance sector.
Bajaj Finance – Best Financial Services Shares to Buy
The title of the second most popular non-banking finance services provider goes to Bajaj Finance Limited. Bajaj Finance has now been loved and accepted by millions of people in the nation.
Set up in 1987, the company has achieved unbelievable success so far. In 2020, the company generated Rs.26,668 crores revenue which is an incredible feat.
Not so many companies can earn a big round of revenue within such a short time. The company employs 260,000+ people in its team, supporting Bajaj Finance Limited to achieve a new milestone with every passing year.
Presently, Bajaj Finance makes its appearance as the best financial services shares to buy. However, the company is a subsidiary of Bajaj Finserv and a child firm of Bajaj Group that has been operational since 1926.
Bajaj Group is also a Mumbai-based organization, giving us a trusted and stable position of Bajaj Finance in the market.
Products & Services
Below we discuss a comprehensive range of financial services offered by Bajaj Finance:
- Consumer finance
- Commercial lending
- SME finance
- Investment
- Rural Lending
- Investment
- Partnership Services
Why invest in the Bajaj Finance stocks?
Your plan to invest in Finance stocks in India can never go wrong in any way if you are investing in stocks like Bajaj Finance.
Bajaj Finance is growing popular for its two popular sub-corporations, Bajaj Housing Finance and Bajaj Financial Securities Limited.
If we talk about the revenue and income of the company, Bajaj Finance Ltd. generates Rs. 60.01 billion in revenue with net income reported to be Rs. 21.25 billion by the end of 2021.
Comparing the company’s last five years’ performance, growth is consistent. Each year, the company begins and ends its financial performance in green which is plausible.
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Bajaj Finserv – Top Finance Sector Stocks
When searching for top finance sector stocks, look no further; explore Bajaj Finserv Ltd.
The Indian-non banking financial services provider, Bajaj Finserv, continues to expand in the nation’s domestic and financial markets.
Set up in 2008, the child company of Bajaj Group enjoys profits in multiple figures. As of 2020, Bajaj Finserv makes Rs. 54,351.47 crores in revenue.
The company’s balance sheet also dictates profitable statistics, but in comparison to other subsidiaries of Bajaj Group, Bajaj Finserv does a bit low in the areas of net income.
Still, it keeps itself highly profitable in the stock market through its wide-ranging products and services.
Products & Services
These are the primary services offered by Bajaj Finserv that are worth noticing if you are preparing to invest in Bajaj Finserv.
- Bajaj Finserv is famous for its no-cost and no-interest EMI plans on numerous consumer products.
- The company is also famous for its investment plans, insurance plans, many loans, and online payments.
Why invest in the Bajaj Finserv stocks?
Let’s discuss finance share price and know where Bajaj Finserv stands. In 2017, Bajaj Finserv’s share prices were reported at Rs. 3761 (as of Mar 3, 2017).
Recently on Oct 19, 2021, the company achieved the target of Rs. 19,000+ marking the highest high of its lifetime. Summing up the revenue figures and operating income, Bajaj Finserv can be seen in green.
Year on year, the company is achieving a new milestone. Beyond a doubt, investors can hope for the best from Bajaj Finserv in the future.
Bajaj Finserv Stock predictions say that the stock prices will rise in the next few months.
HDFC Life Insurance – Top Finance Company in India
HDFC Life Insurance is another popular name to come forth as the top finance company in India.
As the name sounds, HDFC Life insurance is a branch of the parent company HDFC. But if we exclusively talk about HDFC Life Insurance Ltd, it is one of the nation’s oldest long-term life insurance providers.
In 2000, the firm’s life insurance services printed impressive figures in its revenue.
The broad range of services that the company provides is the prime reason deriving growth into HDFC Life Insurance stock.
However, after December of 2021, the company’s prices have consolidated a lot and drew the prices of HDFC Life Insurance Ltd into a bearish trend. But it can be an excellent BUY opportunity.
Products & Services
Here’s a list of HDFC Life Insurance Ltd. services, fetching popularity for its shares in the mainstream.
- Term Insurance Plans
- Retirement & Pension Plans
- Ulip Plans
- Saving Plans
- Child Plans
- Health Plans
- Combo Plans
Why invest in the HDFC Life Insurance stocks?
It’s worth checking the finance share price and balance sheet carefully when investing in a finance stock. In 2021, the company saw a dramatic drop in its revenue stream.
But it can be an excellent opportunity for a BUY. In a similar year, and by the end of December, the prices of HDFC Life consolidated, pushing the company into bearish.
You may wait for the price action as it can be the test at the lower levels for a bounce back.
SBI Life Insurance – Top Insurance stocks in India
SBI Life Insurance is also not far from building its name among the top insurance stocks in India.
But it is worth noting that the firm is a joint venture of SBI and a French Financial Institution. In brief, around 55.5% stake of the company belongs to SBI, and BNP Paribas Cardif has a 0.22% stake.
SBI Life Insurance still has maximum power over its own company. As per fresh data for 2021, SBI Life Insurance made Rs. 3.64 Billion, almost 56.35% more than its previous net income.
Your investment in the share can fetch impressive returns, and it is pretty much sure.
Products & Services
Here’s a glimpse of the significant products and services offered by SBI Life Insurance –
- Individual Insurance Plans
- Group Insurance Plans
- Claims and Maturity
- NRI Services Etc.
Why invest in the SBI Life Insurance stocks?
Savvy investors never forget to watch insurance share prices before investing in. So let’s face it. SBI Insurance company ltd. has a higher PE ratio, reported 77.30 as 2022.
Therefore, it is advised to wait for the prices to retest or avoid investment until the company makes a lower low. The lifetime higher high of the company was reported Rs. 1263 as of Jan 14, 2022.
Again, consolidation is visible, and buy opportunities are also growing exponentially. But we recommend waiting and watching if the prices sustain at desired levels.
SBI Cards and Payment – Top 10 Finance Stocks
Let’s expand this discussion and talk about our sixth position earner in the top 10 finance stocks list. SBI Cards and Payment Services Ltd. is a subsidiary of the parent organization – State Bank of India.
It was a pure-play credit card company headquartered in Gurugram, Haryana. Set up in 1998, the company has achieved a lot in its journey.
Summing up the net income and revenue of SBI Cards and Payment, the company’s reported revenue as of December 2021 was around 19.87 billion, with a net income whopping 3.86 billion.
Despite an intense global recession, the company achieves 84.00% more net income for 2021.
However, this steep growth in revenue and income is apparent. After all, the company operates in the most demanded financial services areas.
Products & Services
These are the primary products and services offered by SBI cards and payments services ltd.
- Credit cards
- Shopping cards
- Travel and Fuel Cards
- Baking Partnership Cards
- Business Cards
Why invest in the SBI cards and Payment stock?
As of Oct 8, 2021, while creating a lifetime high, the company’s share reported value was marked Rs. 1139.85. Here’s a quick glimpse of financial services’ share price and why it is worth investing in SBI Cards and Payment.
Opportunities are still flourishing. Presently, prices of SBI cards and payments are swiftly falling. But it can be worthwhile to keep your eyes on the company’s share price and wait for a low to spot a potential buy signal.
Last time, after forming the lowest low in May 2020, the share fetched 100% returns within a year.
ICICI Lombard – Best Insurance Stocks to Buy
ICICI Lombard General Insurance Co Ltd. garners a notable spot from the list of best insurance stocks to buy.
The company for a long has been doing an excellent job in the finance sector.
To simply put, the limited corporation engages in the services of general insurance, insurance claims and assists companies in investment management.
In 2001, the Mumbai-based company employed more than 10,000 people in its team to date.
To sum up the company’s profitability, recently, in 2021, the company made 40.18 billion in revenue, almost 25.68% higher than its previous years.
The net income of ICICI Lombard General Insurance also witnessed a spike of 1.28% in 2021 compared to the previous year.
Products & Services
Here’s a sneak peek into the types of services offered by ICICI Lombard General insurance
- Motor Insurance
- Health Insurance
- Travel Insurance
- Insurance Claims
- Other Insurance Types
Why invest in the ICICI Lombard stocks?
Let’s cast light upon the finance shares in India. ICICI Lombard General Insurance for long has been doing a great job in the finance sector, as the profitability of the company shows it.
If we look at the prices, ICICI Lombard General Insurance Co Ltd’s prices are volatile; thus, stock traders may expect higher stock prices.
However, long-term holding can fetch great returns as well. From 2017 to 2022, the share has seen an 86.71% increment in its prices.
Within five years, the trader’s investment has almost doubled. However, the bullish pattern is expected to sustain for a long time.
Bajaj Hold & Invest – Top Finance Stocks to Buy
Bajaj Holdings and Investment Ltd. is also a great name in this list of top finance stocks to buy. The India-based firm, also abbreviated as BHIL, holds more than 30% stakes in Bajaj Auto and Bajaj Finserv.
In short, the company primarily benefits from other companies and has no manufacturing unit operational on its name.
Bajaj Subsidiaries BAL and BSF have undertaken the entire manufacturing and production work. Still, BHIL enjoys a profitable spot due to its deeply rooted image and services in the financial industry.
It’s worth investing in this share as the past performance of the BHIL witnesses that it has been one of the most charming stocks for investors.
Products & Services
Here’s a quick look into the company’s offerings:
- Bajaj Holding and Investment Ltd. primarily engage in the business of investment. In short, the company is an investment firm and focuses on the latest business opportunities.
Why invest in the BHIL stocks?
Let’s break down a few vital data on Bajaj Holding and Investment Ltd.’s share. From 2017 to Feb 2022, the share price rose by 146.90% after it consolidated between 2000 to 4000 price points for a long time.
Currently, BHIL has established itself among the top-rated finance companies in India.
However, investors predict that this newest hike in the share price as of Dec 10, 2021, is possibly a bubble to last for a short period. So wait until the share brings itself in a good position.
Bajaj Holdings Share Forecast suggests that it has very good future potential.
Cholamandalam Investment & Fin – Best Finance Companies
Cholamandalam Investment and Fin Co Ltd are one of India’s best finance companies from an investment perspective.
The finance giant has astonished investors over the last couple of years by yielding excellent returns that nobody might have ever expected before.
But before we discuss the share price, let’s catch a glimpse of the company’s biography. It appeared on Aug 17, 1978, but stepped into the public market way later.
Achievements of the company to date deserve to be noted as in recent years, the company has even been ranked among the top 50 NBFCs in India.
By employing more than 7000 people in its team, the company proves its establishment in the industry.
Products & Services
Let’s know about the products and services offered by Cholamandalam Investment and Fin to its clients.
- Vehicle Finance
- Loan Against Property
- Home Loans
- SME Loans
- Rural and Agri Loans
- Wealth Management etc.
Why invest in the Cholamandalam Investment and Fin stock?
Beyond a doubt, it could be a brilliant finance stock to buy.
But we recommend not to invest in excitement. The company’s revenue and net income figures have been increasing year on year. The growth is consistent from 2017 to 2021.
After creating a Lowest Low of its lifetime in the mid of 2020-2021, the company’s share prices skyrocketed.
It could be a potential bubble, but the company’s profitability indicates that sooner or later, the company will build a vital demand area from higher highs. Till then, please keep your eyes on this stock and stay in touch with us.
The company has decent Cash Flow Statement which attracts all types of Investors.
Muthoot Finance – Top 10 Finance Shares to Buy
After this last company – Muthoot Finance, the list of top 10 finance shares to buy ends here, Muthoot Finance is one of the fastest-growing Indian financial corporations.
The company is primarily known for its lowest-rate gold loan plan. But apart from that, Muthoot finance also engages in foreign exchange services and other broad-ranging services.
And surprisingly, the company is one of the oldest in the nation, traces of its existence have been found since 1939. Beyond a doubt, it is one of the most trusted companies from an investment perspective.
Products & Services
Let’s explore the major types of services offered by Muthoot Finance to its clients –
- Gold Loan
- Insurance
- Foreign Exchange
- Big Business Loan
- Housing Finance
- Personal Loan
- Mutual Funds etc.
Why invest in the Muthoot Finance stock?
It’s time to understand how the company has become one of the most significant financial services shares to buy at present.
Muthoot Finance is one of those big market players that have yielded consistent returns for investors despite the global pandemic.
During the global pandemic, the prices of Muthoot Finance fell by just 32.1% as soon as the company took a sharp bullish move.
From 2017 to Feb 2022, the share has witnessed a 286.35% increase in its prices. Altogether, it becomes one of the best shares to trust in the finance sector.
Muthoot Finance Stock predictions say that the stock prices will rise in the next few months.
HDFC Asset Mgt. Co – AMC Stocks to Buy
HDFC Asset Management Company Ltd brings you one of the most popular mutual fund AMC stocks to buy.
The company deals in a wide variety of mutual fund schemes and, through its decades-long history, built an enormous user-base within a few years.
In 1999, the Mumbai-based corporation employed more than 1200 financial experts in its team.
At present, the firm is India’s largest mutual fund manager and currently holds the responsibility of more than Rs. 4.4 trillion assets under its management services.
The firm started its initial public offering in 2018 and 2019 and achieved so much within the shortest time. HDFC Asset management is growing popular among customers as it helps them make the proper use of money.
Simultaneously, it emerges as a popular choice for investors as well. In 2021, the company generated revenue whopping 22.02 Billion, almost 2.77% higher than its previous year.
Star Health and Allied – Finance Companies Stocks to Buy
Another best name suiting your area of interest for investment is undoubtedly Star Health and Allied. It became one of the famous finance companies stocks to buy for because of its long-established image in the industry.
Founded in 2006, Star health and allied companies currently top the best insurance services providers list. The company is one of the oldest insurance and health cover services providing firms.
The company employs more than 14,000 people and is headquartered in India.
Moreover, the NSE Listed corporation is famous for its trusted and affordable insurance plans. Altogether, it becomes a trusted name among investors from the perspective of investment.
The company’s broad range of offerings covers health insurance plans, travel insurance and accidental care plans.
By the end of 2021, the company registered 54.47 Billion in revenue, almost 9.44% higher than the previous year. However, net income is a bit unstable.
Power Finance Corp – Insurance Companies’ Shares to Buy
PFC or Power Finance Corp has become a popular choice among investors for some good reason. If you are searching for affordable insurance companies’ shares to buy, perhaps you should consider PFC.
In 1986, the penny stock corporation employed more than 500 people in its team. But it is worth noting the company isn’t privately held. The corporation comes under the ownership of the Indian Government.
The government-backed company is also recognized as the 8th highest profit-making enterprise in the central public sector.
Also, it is one of India’s giant NBFC. All these traits back the solid image of the Power Finance Corp in the industry.
Suppose you search for the best stock that can promise you the best returns with its trustworthy image. Without a doubt, you should jump straight to PFC.
By the end of 2021, the company will register 224.01 Billion revenue, almost 12.98% higher than its former years.
However, the stock may not be an ideal alternative for long-term investors, but day traders can find a good amount of profits built-in Power Finance Corp
Max Financial – Finance Companies in India
From the list of growing finance companies in India, talking about Max Financial would be fair enough. Set up in 1988, the India-based company is one of the top financial services providers in the nation.
Apart from that, the company is also recognized as India’s largest non-banking private insurance firm.
You might have heard about the company Max Life Insurance which has been a popular pick among insurance seekers in the nation for a long time.
Briefing the profitability of Max Financial, the company registers 71.96% growth in revenue and 193.39% growth in net income in 2021.
The NSE registered corporation has done an incredible job in the industry, as investors also enjoy remarkable profits from the financial service providers.
General Ins. Corp – Financial Services Stocks
The last option in this list of honorable mentions of financial services stocks in India is General Ins. Corp. However, the general insurance providing firm comes under the ownership of the Government of India.
The government-backed image derives the trust of customers towards General Ins. Corp. Similarly, investors as well find the firm trustworthy from an investment perspective.
Headquartered in Mumbai, GIC serves customers in both domestic and international regions.
After all, the company is one of the oldest players in the insurance market that has its presence spread across European nations.
Germany, Switzerland and France are a few popular countries where the trace of this Government held organization can be found
How to find Finance Stocks for Trading?
It can be challenging to trade in finance stocks. After all, increasing competition, cultural shift, security breaches and changing business models are the critical areas of concern.
But there’s no denying that every sector is linked with a particular risk. No investment offers you risk-free returns until or unless the Government offers the scheme.
Nevertheless, if you want to capture more from a small amount, finance stocks investment could be a great choice. To find the best stock for trading in this niche, keep the given points in mind –
- First, look out for the potential leaders in the finance sector (take help of the list of top banks stated above)
- Second, know their historical performance and offerings to customers they are mainly known for
- Third, figure out if the company is digitally focused and secured
- Reputation and long-established image in the industry also defines a company on a big picture.
- Invest as soon as you feel confident about the selection!
How to Invest in Finance Sectors Stocks?
The process of investing in financial services stocks is as simple as investing in any other NSE or BSE-listed stock.
All it takes is your demat account or trading account with a SEBI regulated broker. Once you have all these things ready, you are ready to take a plunge.
Always invest in the popular shares that are pretty trending in the market. Such as, the above list carries some famous names in the finance sector. So choose the best one you discover a vast potential in.
Don’t park your money on a single stock entirely. It will ruin your investment experience within a month or two; play like a professional investor and invest in multiple chunks.
Diversify your investment and see the results.
Top Finance Companies in India – Conclusion
Ultimately you have the list of top finance companies in India ready. You can now reach a fair choice for an investable asset to multiply your investment.
Rising growth in the Indian finance sector is a clear indication that maximum industry investors will stay profitable in the end.
However, the market of every sector is uncertain, but based on past performance, some positive cues can be obtained from the financing sector.
So take help from the list of top ten finance stocks stated above and reach a fair decision.
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