HDFC Bank, ICICI Bank, IndusInd, Axis, Manappuram: Top financial stocks to buy; check fresh targets

NBFC credit growth accelerated to 14.9 per cent year-on-year in Jul'26, compared with 10.6 per cent a year ago, according to a report by IDBI Capital. Outstanding credit rose 1.0 per cent month-on-month to Rs 59.9 lakh crore. The brokerage firm has shared its target prices and ratings for top banking and financial counters including gold finance, housing finance and other NBFCs.

IDBI Capital said the increase was led by retail loans, which grew 21.4 per cent year-on-year, and agriculture credit, which rose 18.0 per cent. Services credit grew 15.2 per cent, while industrial credit remained subdued at 7.4 per cent. On a sequential basis, overall NBFC credit increased 1.0 per cent, led by retail lending.

Retail and agriculture were the main supports to NBFC credit growth, the IDBI Capital report said. Retail loan growth accelerated to 21.4 per cent from 13.7 per cent a year ago, led by gold loans at 68.5 per cent, consumer durables at 51.5 per cent, vehicle loans at 15.1 per cent and housing loans at 11.9 per cent. Agriculture credit also accelerated to 18.0 per cent from 5.4 per cent a year ago.

Services growth moderated, even as some segments remained strong. Services credit grew 15.2 per cent against 24.5 per cent a year ago, while commercial real estate credit rose 22.3 per cent year-on-year, though the segment declined 7.1 per cent month-on-month. Industrial credit grew 7.4 per cent, with infrastructure credit at 6.2 per cent, reflecting continued moderation in the segment, according to IDBI Capital.

IDBI Capital said NBFC credit growth strengthened in Jul'26 on the back of strong retail and agriculture lending. It said growth should remain healthy, supported by housing, vehicle and gold loans, while a gradual recovery in industrial credit and sustained demand from services should provide further support.

From the banking space, IDBI Capital has a buy rating on HDFC Bank (Target Price: Rs 950), ICICI Bank (Target Price: Rs 1,730), Union Bank of India (Target Price: Rs 197), Axis Bank (Target Price: Rs 1,600), Federal Bank (Target Price: Rs 410), IndusInd Bank (Target Price: Rs 1,230), City Union Bank (Target Price: Rs 280), DCB Bank (Target Price: Rs 216).

From the housing finance space, Avaas Financiers (Target Price: Rs 1,745), Aadhar Housing Finance (Target Price: Rs 580), Aptus Value Housing (Target Price: Rs 305), Home First Finance (Target Price: Rs 1,400) and India Shelter Finance Corporation (Target Price: Rs 796) also have a 'buy' call for them.

It also gave a 'buy' rating to Manappuram Finance and Muthoot Finance with target price of Rs 440 and Rs 3,600, respectively. Shriram Finance (Target Price: Rs 1,200), M&M Finance (Target Price: Rs 404) and Chola Finance (Target Price: Rs 2,020) also got a 'buy' call from IDBI Capital, while Sundaram Finance was rated 'hold' with a target price of Rs 5,260.