As the financial services sector is regarded as the primary force driving India’s economic expansion, investors should definitely consider including financial stocks as a significant part of their portfolios.
Financial stocks attract investors not just because of their historical success but also because of their ability to withstand and adjust to shifting market conditions. They frequently remain strong through storms and come out stronger, even in uncertain times and volatility.
So, which are the best financial stocks to buy in 2024 to strengthen your portfolio? Here’s a detailed overview to make you understand better.
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What are finance stocks?
Financial stocks are shares held by companies that operate in the financial sector. These firms offer various financial services, including investment management, banking, insurance, lending, brokerage, etc.
Interest rates, the regulatory framework, the health of the economy, technical developments, and market sentiment all significantly impact the performance of financial stocks.
List of Best Finance Stocks to Buy in India 2024
- Bajaj Finance
- Anand Rathi Wealth
- ICICI bank
- HDFC bank
- Axis Bank
- State Bank of India
- Kotak Mahindra bank
- Aditya Birla Capital Ltd
- AAVAS Financiers Ltd
- BAJAJ FINSERV
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Performance overview of best Finance Stocks to Buy in 2024
| Name of the Stock | Market cap
(Cr.) |
Dividend Yield | Debt to Equity Ratio | ROCE (%) | ROE (%) | PE Ratio (%) |
| Bajaj Finance | 4,09,125 | 0.45 | 3.14 | 11.8 | 23.5 | 29.7 |
| Anand Rathi Wealth | 15,254 | 0.33 | 0.03 | 47.9 | 38.0 | 72.9 |
| ICICI bank | 7,17,708 | 0.78 | 0.82 | 6.32 | 17.2 | 16.9 |
| HDFC bank | 10,78,722 | 1.34 | 1.828 | 6.24 | 17.1 | 15.9 |
| Axis Bank | 3,29,573 | 0.09 | 1.49 | 5.12 | 8.73 | 13.9 |
| State Bank of India | 6,73,629 | 1.50 | 1.455 | 5.20 | 16.8 | 9.79 |
| Kotak Mahindra bank | 3,44,689 | 0.09 | 0.51 | 6.86 | 14.3 | 19.8 |
| Aditya Birla Capital Ltd | 48,408 | 0.00 | 0.00 | 11.4 | 26.8 | 17.9 |
| AAVAS Financiers Ltd | 11,256 | 0.00 | 318.7 | 9.51 | 14.1 | 23.7 |
| Bajaj Finserv | 2,51,425 | 0.05 | 4.9447 | 11.3 | 14.8 |
34.0 |
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Overview of Best Finance Stocks to Buy in India 2024
Bajaj Finance
Bajaj Finance is primarily engaged in the lending and acceptance of deposits business. Its strong presence in urban and rural India offers a diverse loan portfolio to SMEs and retail and commercial clients accepting deposits from individuals and corporations.
Bajaj Finance is projected to record annual sales and profit growth of 24% and 27.1%, respectively. The forecasted annual growth rate for EPS is 23.5%, and an anticipated return on equity is 22.4% in 3 years.
Anand Rathi Wealth
The business offers various services, including investment banking, capital market lending, construction finance, commodities, stock broking, and wealth management. From Rs 138.1 crore in the Q2FY23 to Rs 189.1 crore in the Q2FY24, its total revenue increased by 37%.
ICICI bank
The main goal of ICICI Bank is to establish a development finance organisation to give Indian companies project financing for medium- and long-term projects.
The TTM P/E ratio of ICICI Bank is 16.43, compared to the industry P/E of 9.50. Forty analyst teams initiated coverage on ICICI Bank. Twenty-three experts have rated it as a strong buy, and fifteen have rated it as a buy. The stock is rated as sell by 0 analysts.
HDFC Bank
HDFC Bank offers a wide range of services and products, such as wholesale banking, credit cards, treasury, retail banking, consumer durable loans, auto loans, personal loans, two-wheeler loans, loans against property and lifestyle loans.
HDFC Bank has a TTM P/E ratio of 18.99, compared to the sector’s P/E of 9.42. It aims to boost earnings and sales by 15.6% and 8.8% annually. EPS is projected to rise by 11.1% annually, and the return on equity is expected to reach 16.5% in three years.
Axis Bank
As the third-biggest privately owned bank in India, it provides its customers with various financial services, including retail, small and medium-sized businesses, large and mid-sized companies, and micro, small, and medium-sized enterprises (MSME).
Due to its stronger ROA of 1.6 –1.8 per cent above PNB’s ROA of 0.6-0.8%, and its better credit growth than PNB, Axis offers investors better prospects for long-term wealth generation. Compared to the sector P/E of 9.50, it has a TTM P/E ratio of 25.31.
State Bank of India
SBI is a public sector banking and finance statutory entity based in India that is multinational and serves the financial needs of a large portion of the country’s 2.6 trillion dollar economy.
Compared to the industry P/E of 9.44, the State Bank of India’s TTM P/E ratio is 8.98. Considering bullish market trends, the price objective for SBI Cards and Payment Services Ltd is anticipated to reach ₹734.02 by the end of 2024.
Kotak Mahindra bank
In addition to managing initial public offerings (IPOs), the bank maintains lending verticals and provides transaction banking services. The Bank’s main business divisions include treasury, corporate banking, commercial banking, consumer banking, and other financial services. In comparison to the sector P/E of 9.50, Kotak Mahindra Bank has a TTM P/E ratio of 21.73.
Aditya Birla Capital Ltd
Aditya Birla Capital Limited is a member of the Fortune 500 Aditya Birla Group, a multinational company valued at over 6500 crores. The Group is based on a solid foundation of creating value for stakeholders, with more than 187,000 persons from 100 different nationalities serving as its remarkable force. It has a TTM P/E ratio of 15.50 compared to the sector P/E of 17.94.
AAVAS Financiers Ltd
Products offered by AAVAS Financiers Ltd. include micro, small, and medium enterprise (MSME) loans, balance transfer loans, home equity loans, which comprise loans secured by residential property, and loans for land purchase and building.
AAVAS Financiers Ltd 2024’s initial target price is ₹1462.64, and the year-end target is ₹1625.05.
Bajaj Finserv
In India’s financial sector, Bajaj Finserv stands strong with 73,000 dedicated employees, providing various financial solutions to individuals across India. An extensive urban and rural India network offers retailers, SMEs, and companies a diverse loan portfolio. On the long-term charts, Bajaj Finserv has been steadily climbing and consistently generating greater highs and greater lows.
How to start Investing in Financial Stocks?
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Start your journey with us in these three easy steps:
- Go to the official website of SMCtradeonline or simply download the app
- Open a free demat account
- Start investing
WHY SMC
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Conclusion
Investors must prioritise companies with a proven record of profitability, a competitive edge, and the flexibility to adapt to shifting market conditions. Learn the ins and outs of companies by researching the financial sector before investing.
Start your trading game with SMC and choose the best finance stock to buy today!
