India NBFC Stocks 2026: ROE & PE Ranked

India's non-banking financial companies (NBFCs) are the credit backbone of the economy — bridging the gap between commercial banks and the borrowers they cannot efficiently serve: two-wheeler buyers in tier-3 towns, gold-loan seekers in Kerala, used-vehicle financiers in Rajasthan, and credit-card holders who bank with SBI. Five of the largest listed NBFCs — Bajaj Finance, Cholamandalam Investment and Finance, Muthoot Finance, Shriram Finance, and SBI Cards — together represent roughly ₹11.5 lakh crore in combined market capitalisation. The quality and valuation gap within that group is significant.

We pulled live data from the DocStoX dataset (sourced from NSE/BSE audited filings) for all five stocks and ranked them by return on equity (ROE) and ROCE — the two metrics that best capture value creation in lending businesses — alongside PE, PB, PAT, and debt-to-equity. Every figure is live as of July 10, 2026.

Why ROE and ROCE Are the Right Metrics for NBFCs

NBFCs operate on spread — the gap between their cost of funds and the yield on their lending book. Unlike manufacturers, there is no EBITDA margin to compare: the entire business model is financial intermediation. Return on equity (ROE) tells you how much profit the company generates for every rupee of shareholders' capital; ROCE (return on capital employed) tells you how efficiently the entire capital structure — equity plus debt — is deployed. For a gold-loan NBFC or a vehicle financier, high ROE with manageable leverage is the gold standard. A high D/E ratio is structurally unavoidable (borrowing to lend is the business), so the question is whether the spreads justify the leverage.

The PE and PB multiples round out the picture: a low-PE NBFC with high ROE is potentially mispriced; a high-PE NBFC with mediocre ROE is pricing in a growth story that may or may not materialise.

ROE Rankings: The Live Scoreboard (July 10, 2026)

All figures are from NSE/BSE audited annual filings, sourced via DocStoX data:

• Muthoot Finance: 30.9% ROE — highest in the group; PE just 11.59x; PAT ₹10,607 Cr
• Cholamandalam: 19.3% ROE — vehicle-finance compounder; PE 29.18x; PAT ₹5,233 Cr
• Bajaj Finance: 18.2% ROE — India's largest consumer-lending NBFC; PAT ₹19,332 Cr; PE 32.85x
• Shriram Finance: 16.4% ROE — used-vehicle specialist; cheapest after Muthoot at 19.36x PE
• SBI Cards: 13.91% ROE — pure credit-card play; highest ROCE at 20.03%; PE 29.21x

The spread from Muthoot's 30.9% ROE to SBI Cards' 13.91% reflects fundamentally different business models and credit cycles — not simply operational quality. Muthoot's gold-loan portfolio is the most asset-backed and fastest-liquidating lending book in India; SBI Cards operates in a structurally higher-cost credit-card receivables business currently absorbing elevated credit losses.

Muthoot Finance (MUTHOOTFIN): 30.9% ROE at 11.59x PE — the Standout Value

Muthoot Finance is the standout finding in this analysis. At ROE of 30.9%, ROCE of 15.8%, PAT of ₹10,607 crore, and a PE of just 11.59x, it offers the rarest combination in Indian large-cap financials: high-quality returns at a value-stock multiple. Market cap stands at ₹1.23 lakh crore. Book value per share is underpinned by a gold-loan portfolio — almost entirely secured by physical gold — that carries near-zero credit losses: if a borrower defaults, Muthoot auctions the pledged gold. This collateral certainty is why Muthoot can lever to D/E of 3.08x with significantly less credit risk than a comparable unsecured consumer lender.

The current price of ₹3,057.4 is down 26.3% from its 52-week high of ₹4,149.5 and up 23.5% from its 52-week low of ₹2,476.6. The correction from peak — driven by RBI gold-loan circular concerns and rising gold prices compressing LTV headroom temporarily — has widened the ROE-to-PE gap. Dividend yield: 0.96%. For investors screening India NBFC stocks 2026 on a quality-adjusted-valuation basis, Muthoot's 30.9% ROE at 11.59x PE is the clearest anomaly in this group.

Bajaj Finance (BAJFINANCE): India's Largest NBFC — ₹19,332 Cr PAT at 32.85x

Bajaj Finance is the bellwether of India's consumer NBFC industry. PAT of ₹19,332 crore is the highest absolute profit in the group — by a wide margin — and makes Bajaj Finance one of India's top five most profitable financial institutions by net profit. Market cap of ₹6.25 lakh crore positions it among India's ten most valuable listed companies. ROE of 18.2% and ROCE of 10.8% reflect a diversified lending book spanning consumer durables, two-wheelers, personal loans, home loans, SME lending, and co-branded credit cards across 88 million+ customers.

The current price of ₹1,003.8 is down 9.0% from its 52-week high of ₹1,102.5 and up 27.3% from its 52-week low of ₹787.9. At PE 32.85x and PB 5.57x, Bajaj Finance trades at a premium to all peers — justified by its brand, cross-sell flywheel, and consistent PAT growth. D/E of 3.78x is the highest among the non-vehicle-finance names but appropriate for Bajaj Finance's lending scale. Dividend yield: 0.58%.

Cholamandalam Investment & Finance (CHOLAFIN): Vehicle-Finance Compounder at 19.3% ROE

Cholamandalam — the NBFC arm of the Murugappa Group — is a vehicle-finance compounder that has steadily diversified into home loans, SME lending, and consumer finance. ROE of 19.3% is the second-highest in this group; PAT of ₹5,233 crore continues to grow at a compounding pace driven by loan-book expansion in under-penetrated semi-urban and rural markets. ROCE of 9.7% is the lowest in the group — reflective of Cholamandalam's higher leverage (D/E 7.15x), which is structurally typical of vehicle-finance NBFCs that fund large-ticket commercial-vehicle loans on thin spreads at high volumes.

The current price of ₹1,791.9 is just 4.4% below its 52-week high of ₹1,875 — near peak pricing. At PE 29.18x and PB 5.01x, the market prices Cholamandalam as a quality compounder. The 52-week low of ₹1,299.4 was seen during broader NBFC sector de-rating in late 2025. Dividend yield: a modest 0.11%.

Shriram Finance (SHRIRAMFIN): Used-Vehicle Specialist, 16.4% ROE at 19.36x PE

Shriram Finance — formed by the merger of Shriram Transport Finance and Shriram City Union Finance — is India's largest used-commercial-vehicle financier and a diversified NBFC serving self-employed and small-business borrowers. ROE of 16.4%, ROCE of 11.5%, and PAT of ₹10,024 crore reflect a business with consistent credit quality despite serving a customer segment that conventional banks find difficult to underwrite. D/E of 3.96x is moderate for the sector. Market cap: ₹1.94 lakh crore.

At PE 19.36x — the second-cheapest in the group after Muthoot — Shriram Finance is the most accessible valuation among the mid-quality peers. The current price of ₹1,031.7 is 6.9% below its 52-week high of ₹1,108 and up 82% from its 52-week low of ₹566.5 — one of the strongest 52-week recoveries in this group. Dividend yield: 1.01% — the highest in the group.

SBI Cards & Payment Services (SBICARD): Highest ROCE at 20.03%, Lowest ROE

SBI Cards is India's second-largest credit-card issuer, operating as a pure-play credit-card NBFC backed by State Bank of India's distribution reach. ROCE of 20.03% is the highest in this group — reflecting a credit-card model where the asset (receivables) turns over rapidly and margin per transaction is high. But ROE of 13.91% is the lowest in the group and PAT of ₹1,916 crore has been compressed by elevated credit-loss provisions as the post-COVID credit-card boom normalises into higher delinquency rates among revolving-credit borrowers.

The current price of ₹588.2 is down 41.5% from its 52-week high of ₹1,004.75 — the steepest correction in this group — and is only 4% above its 52-week low of ₹565.45. D/E of 3.28x, PB of 3.66x, and PE of 29.21x suggest the market is still pricing in a normalisation of credit costs and PAT recovery. SBI Cards' ROCE premium is real, but the ROE trajectory matters more for medium-term stock performance. Market cap: ₹55,978 crore. Dividend yield: 0.41%.

Full Scoreboard: Live DocStoX Data, July 10, 2026

All figures sourced from NSE/BSE audited annual filings via DocStoX data:

• Bajaj Finance: PAT ₹19,332 Cr | ROE 18.2% | ROCE 10.8% | D/E 3.78x | PE 32.85x | PB 5.57x | Mkt Cap ₹6.25 lakh Cr | Div Yield 0.58%
• Cholamandalam: PAT ₹5,233 Cr | ROE 19.3% | ROCE 9.7% | D/E 7.15x | PE 29.18x | PB 5.01x | Mkt Cap ₹1.53 lakh Cr | Div Yield 0.11%
• Muthoot Finance: PAT ₹10,607 Cr | ROE 30.9% | ROCE 15.8% | D/E 3.08x | PE 11.59x | PB 3.03x | Mkt Cap ₹1.23 lakh Cr | Div Yield 0.96%
• Shriram Finance: PAT ₹10,024 Cr | ROE 16.4% | ROCE 11.5% | D/E 3.96x | PE 19.36x | PB 3.05x | Mkt Cap ₹1.94 lakh Cr | Div Yield 1.01%
• SBI Cards: PAT ₹1,916 Cr | ROE 13.91% | ROCE 20.03% | D/E 3.28x | PE 29.21x | PB 3.66x | Mkt Cap ₹55,978 Cr | Div Yield 0.41%

Catalysts to Watch in H2 FY27

1. RBI rate trajectory: NBFCs borrow at market rates and lend on fixed-spread contracts. An RBI rate cut in H2 FY27 would compress borrowing costs faster than loan yield repricing, expanding net interest margins across the sector — a tailwind particularly for highly leveraged names like Cholamandalam and Shriram Finance.
2. Gold price and LTV norms (Muthoot): Muthoot Finance's AUM is directly correlated with gold prices (higher gold = higher collateral value = larger permissible loan). Any RBI clarification on gold-loan LTV norms and the status of the 2024 circular is the single largest regulatory catalyst for Muthoot in FY27.
3. Credit-card loss normalisation (SBI Cards): SBI Cards' PAT recovery depends on credit-card delinquencies peaking and trending down. Any improvement in the 90+ DPD bucket — visible in quarterly NPA disclosures — would be a re-rating catalyst given the stock's 41% correction from peak.
4. Vehicle-finance demand (Shriram, Cholamandalam): Commercial-vehicle sales volume is the top-line driver for Shriram Finance and a key component for Cholamandalam. Any infrastructure-spending acceleration or freight-demand uptick drives disbursements and AUM growth for both names.
5. Bajaj Finance cross-sell and new business verticals: Bajaj Finance's loan-book diversification into housing (Bajaj Housing Finance, separately listed) and SME lending is the growth engine beyond the core consumer-durable book. Quarterly AUM guidance and new-customer additions remain the key metrics to track for the premium multiple to sustain.

The DocStoX Take

India's top NBFC stocks 2026 split into three quality-and-valuation profiles:

Quality at a deep-value price (Muthoot Finance): 30.9% ROE, 15.8% ROCE, ₹10,607 Cr PAT — and PE of just 11.59x. The gold-loan model's collateral certainty, asset-light operating leverage, and near-zero credit-loss history explain why Muthoot consistently earns the highest returns in this group. The 26% correction from its 52-week high has widened an already compelling ROE-to-PE gap. Shriram Finance at 16.4% ROE and 19.36x PE is the value runner-up.

Quality at a premium (Bajaj Finance, Cholamandalam): Both earn 18–19% ROE and trade at 29–33x PE. The premium is warranted by compounding loan-book growth, brand equity, and distribution depth — but leaves less margin of safety on valuation. These are long-term compounder bets rather than near-term value plays.

Recovery story (SBI Cards): Highest ROCE in the group at 20.03% but lowest ROE at 13.91% and a 41% correction from peak. A PAT recovery driven by normalising credit costs could make SBI Cards interesting at current levels — but the timing of that normalisation is uncertain.

Full live data, DocStoX AI verdicts, and fair-value estimates for Bajaj Finance, Muthoot Finance, Cholamandalam, Shriram Finance, and SBI Cards are available at docstox.com.

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By the DocStoX Desk — This is for informational purposes only and not investment advice. Please consult a SEBI-registered advisor before investing.