This multibagger smallcap NBFC stock has left Bajaj Finance in the dust by gaining over 300 per cent
This stock has been a shining star among the NBFC sector, skyrocketing nearly 325 per cent in the last five years!
Non-Banking Financial Companies (NBFCs) are a crucial part of the Indian financial system. They play a significant role in the country's economy by providing various financial services to individuals and businesses, particularly those who do not have access to traditional banking services.
NBFCs are financial institutions that are regulated by the Reserve Bank of India (RBI) but do not have a banking license. These institutions cannot accept deposits like banks, but they can provide loans and credit facilities, offer investment products, and engage in other financial activities. They act as intermediaries between investors and borrowers and play an important role in providing credit to small businesses and individuals who may not meet the strict criteria of traditional banks.
NBFCs were first introduced in India in the 1960’s, and since then, they have grown to become an essential part of the financial system. They have helped bridge the gap between traditional banks and customers who have been unable to access banking services due to various reasons, such as low credit scores, lack of collateral, or limited documentation.
In recent years, NBFCs have faced some challenges, particularly in the form of liquidity crunches and rising non-performing assets (NPAs). In 2018, the failure of IL&FS, one of India's largest NBFCs, led to a liquidity crisis in the sector, which affected the availability of credit and increased borrowing costs.
However, the RBI has taken several measures to address these challenges and ensure the stability of the sector. The central bank has increased the minimum capital requirement for NBFCs, tightened regulations on asset-liability management, and introduced measures to strengthen the governance framework of these institutions.
Despite the challenges, the NBFC sector remains an important part of the Indian financial system. These institutions continue to play a critical role in providing credit to small businesses and individuals, and their flexibility in lending has made them a preferred choice for many customers. As the Indian economy continues to grow, NBFCs are expected to play an even more significant role in supporting the country's financial inclusion goals.
If you are looking for an NBFC stock that has outperformed its peers and become a multibagger, then look no further than Arman Financial Services Ltd. This stock has been a shining star among the NBFC sector, skyrocketing nearly 325 per cent in the last five years!
Back in March 2018, the stock was quoted at a modest Rs 313.25 per share, but today it is trading at a staggering Rs 1331.90 per share. If you had invested Rs 1,00,000 in Arman Financial Services Ltd back in 2018, you would have received 319 shares. Fast forward to today, and the value of those shares would be a whopping Rs 4,24,908! That's an incredible return on investment that any investor would be thrilled about.
Investors who have had the foresight to invest in Arman Financial Services Ltd have been rewarded handsomely, as the stock has delivered consistent returns and has shown no signs of slowing down. It's a testament to the power of smart investing and the potential for great returns that lie within the NBFC sector.