India is rapidly evolving in the financial landscape, as Non-Banking Financial Companies (NBFCs) have emerged as key players in credit distribution, mainly in the rural and semi-urban markets. In FY 2025, investors are eagerly watching which NBFC stock could generate the best returns.
NBFCs sectors like HDB Financial, Shriram Finance, and Bajaj Finance are the three strong names that often dominate.
Let’s explore the detailed HDB Financial vs Shriram Finance vs Bajaj Finance, while also exploring HDB Financial stock analysis to find out the best NBFC stock to buy in 2025 India.
Overview: NBFC Sector Outlook in 2025
The NBFC sector is most likely to grow strongly in 2025, because of these several positive factor:
- Economy of India is expected to grow by around 6.7% in FY 2025, which will boost the overall lending and spending.
- Digital services are used by most people and businesses these days, and NBFCs are collaborating with fintech companies to provide better services to their customers.
- Demand for loans is growing day by day, especially from MSMEs and people in Tier-2 and Tier-3 cities.
- The Reserve Bank of India (RBI) is keeping the rules clear and stable, which is giving NBFCs more confidence to grow.
According to CRISIL (Credit Rating Information Services of India Limited), the total loan amount given by NBFCs could go up by 12 to 14% in FY 2025, which makes this sector an exciting option for equity investors.
1. Bajaj Finance: The Undisputed Market Leader
Stock Code: NSE: BAJFINANCE
Market Cap: As of July 2025: ₹4.8 lakh crore
Current Price: as of July 2025: Approx. ₹7,300
Bajaj Finance is largely regarded as the top-performing NBFC stock in India. It is mainly known for its strong retail franchise, innovation in digital lending, and low NPAs (Non-Performing Assets). It is continuously attracting both institutional and retail investors.
Strengths:
- It has strong profit growth, Q4 FY 2024: ₹3,158 crore, increased by 21% year-over-year
- Gross NPA is less than 1.1%, which gives excellent asset quality
- It provide high Return on Equity (ROE), which is 22%
- It has strong digital ecosystem like Bajaj Finserv App and EMI Network
Bajaj Finance Outlook:
Analyst experts predicted a 15 to 18% CAGR in earnings over the next 2 years. Because of the aggressive growth in rural lending and digital services, it remains a top performing NBFC sock pick for India 2025.
Hence, Bajaj Finance is a great option for long-term investors who are seeking for stability and consistent returns over time.
2. Shriram Finance: Undervalued Gem with High Potential
Stock Code: NSE: SHRIRAMFIN
Market Cap: ₹1.1 lakh crore (as of July 2025)
Current Price: Approx. ₹2,120 (as of July 2025)
Shriram FInance is a leading NBFC sector, which mainly focuses on commercial vehicle finance, SME lending, and rural credit. After the collaboration with Shriram Transport Finance and Shriram City Union Finance in 2022, it became a merged leader in NBFCs sector.
Strengths:
- It has strong rural and semi-urban presence in the market
- It has a lending portfolio of ₹2.15 lakh crore in FY 2024
- It has net profit in Q4 FY 2024 of ₹1,775 crore, increased by 24% year-over-year
- Price-to-Earning (P/E) ratio is lower than peers, which is undervalued
Shriram Finance Outlook:
Analyst experts predicted a 20 to 25% upside from current levels by the end of FY 2025, which is due to lower valuation and rising credit demand in neglected markets.
Hence, Shriram Finance is ideal for value investors, who are looking for undervalued NBFC stock in India.
3. HDB Financial Services: The Dark Horse Awaiting Listing
Parent Company: HDFC Bank
Status: Unlisted for now, but IPO slated for late 2025
Valuation: Approx. ₹60,000 to ₹70,000 crore, based on last internal audit
HDB Financial Services is a non-deposit taking NBFC sector, which offers gold loans, retail lending, and enterprise finance. It is backed by HDFC Bank and it offers excellent credit underwriting and digital capabilities.
Strengths:
- It is backed by HDFC Bank, which is India’s most valuable private bank
- It has a clean balance sheet with low NPAs, which is approx. 1.8%
- It has strong presence in Tier 2 and Tier 3 cities
- It has estimated net profit in FY 2024 of ₹1,800 crore
HDB Financial Stock Outlook:
HDB’s IPO is expected to be anticipated in late 2025 or early 2026, and it is being promoted as one of the most awaited NBFC IPOs in recent years. Its collaboration with HDFC gives it a credibility boost. However, lack of current public trading makes immediate investment difficult.
Hence, It is a watchlist NBFC stock for 2025 with high potential.
HDB Financial vs Shriram Finance vs Bajaj Finance: Key Comparison Table
| Feature | Bajaj Finance | Shriram Finance |
| Market Cap | ₹4.8 lakh crore | ₹1.1 lakh crore |
| Loan Book | ₹2.7 lakh crore | ₹2.15 lakh crore |
| Net Profit (FY 2024) | ₹11,512 crore | ₹6,800 crore |
| ROE | 22% | 16% |
| NPA | Less than 1.1% | Approx. 2.4% |
| P/E Ratio | Approx. 34x | Approx. 14x |
| Risk | Low | Medium |
| Growth Potential | High | High |
Conclusion:
- Bajaj Finance stays the safest option with proven performance, low risk, and high consistency. It is the best NBFC stock to buy in 2025 India, especially if you are a conservative long-term investor.
- Shriram Finance is a perfect choice for those investors who are looking for value buying and price appreciation. Its stock remains undervalued instead of strong fundamentals.
- HDB Financial is a promising stock for the future once it goes public. That is why investors should stay updated on its IPO listing and valuation.
So, if you are thinking which NBFC stock is best for 2025, the answer depends on your financial goals and investment method, which is Bajaj for more stability, Shriram for valued stocks, and HDB for potential growth.
FAQs
Is Bajaj Finance still a good buy in 2025?
Yes, it is one of the top-performing NBFC stocks in India with a solid financial and digital lending capabilities.
What is the share price forecast for Shriram Finance in 2025?
Expert analysts predicted a 20 to 25% upside from current level due to its strong rural demand and attractive valuation.
Is HDB Financial a listed company?
No, HDB Financial is currently not listed, but its IPO is likely to be listed in late 2025 or early 2026.
Which NBFC stock has the highest growth potential?
While Shriram Finance offers better upside due to undervaluation, Bajaj Finance has the highest growth consistency.
Are BNFC stocks good for long-term investment in India?
Yes, NBFC stocks with strong balance sheets, low NPAs, and growth in tier 2 and Tier 3 markets like Bajaj Finance & Shriram Finance.