Motilal Oswal's top stock picks in the NBFC space for Q1 include Shriram Finance, PNB Housing Finance, and L&T Finance.
Cost of borrowings for most NBFCs has slightly decreased due to the repricing of EBLR borrowings.
Large housing finance companies are facing tough competition from PSU banks offering lower home loan rates, forcing some HFCs to forgo such business to maintain yields.