3 Consumer Finance, Mortgage and Power Lending Stocks With a Strong Future Roadmap: Bajaj Finance, LIC Housing Finance and REC Limited
- October 14, 2026
- Posted by: Lakshit Sharma
- Category: Best Stocks
Bajaj Finance Rs 982.75, P/E 28.77. LIC Housing Rs 564.00, P/E 5.15. REC Rs 307.00, P/E 4.82. Closing prices of 13 Oct 2026.
Quick Answer
Consumer finance, mortgage and power lending stocks with the clearest long-term roadmaps today include Bajaj Finance in consumer, small business and mortgage lending, LIC Housing in home loans for salaried and self-employed borrowers, backed by the LIC group reach and REC in lending to power generation, transmission, distribution and renewable energy projects. FY26 revenue growth was 19.1% at Bajaj Finance, 2.6% at LIC Housing and 5.7% at REC. P/E stands at 28.77 for Bajaj Finance (industry 17.72), 5.15 for LIC Housing (industry 17.72) and 4.82 for REC (industry 17.72). Demand cycles, input costs and valuation decide how much of that growth the market keeps paying for, so each company’s risks need equal attention.
Consumer finance, mortgage and power lending stocks give investors exposure to loans that help households, home buyers and power projects. Loan growth, funding costs and asset quality decide how much of that demand turns into profit.
This list covers three consumer finance, mortgage and power lending stocks: Bajaj Finance for consumer, small business and mortgage lending, LIC Housing Finance for home loans for salaried and self-employed borrowers, backed by the LIC group reach and REC Limited for lending to power generation, transmission, distribution and renewable energy projects. Every figure comes from the latest reported financials and the 13 October 2026 market close. Companies without complete current figures were left out.
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What Are Consumer Finance, Mortgage and Power Lending Stocks?
Consumer finance, mortgage and power lending stocks are shares of companies that lend to households, small businesses and projects. Results depend on loan growth, funding costs and asset quality, so asset quality and funding costs separate the stronger names.
Consumer Finance, Mortgage and Power Lending Stocks at a Glance
The table compares size, valuation, return on equity and debt for the three consumer finance, mortgage and power lending stocks as of the 13 Oct 2026 close.
| Company | CMP (Rs) | Market Cap (Rs Cr) | P/E | Industry P/E | ROE | Debt to Equity |
|---|---|---|---|---|---|---|
| Bajaj Finance | 982.75 | 593,956 | 28.77 | 17.72 | 16.68% | 3.82 |
| LIC Housing Finance | 564.00 | 29,538 | 5.15 | 17.72 | 13.53% | 6.70 |
| REC Limited | 307.00 | 77,364 | 4.82 | 17.72 | 19.17% | 6.05 |
Among lending stocks, Bajaj Finance trades at a premium to the industry P/E, while LIC Housing and REC trade at a discount.
Why Do Consumer Finance, Mortgage and Power Lending Stocks Have a Strong Roadmap in India?
Consumer finance, mortgage and power lending stocks have a strong roadmap in India because consumer credit, home ownership and power sector investment keep adding customers for these lenders. Three drivers stand out.
- Consumer credit: More households finance purchases through formal lenders.
- Home ownership: Salaried and self-employed families seek home loans.
- Power investment: Generation and grid projects need long-term funds.
Bajaj Finance: Consumer and Business Lending Build the Next Leg
Bajaj Finance’s roadmap rests on consumer, small business and mortgage lending, along with a large customer base and a fast-growing digital platform, with cross-selling to existing customers supporting loan growth.
Revenue grew from Rs 31,640.41 crore in FY22 to Rs 81,989.50 crore in FY26, a 159.1% rise, and FY26 revenue was 19.1% higher than FY25. FY26 net profit rose 15.2% to Rs 19,332.36 crore. Over four years, net profit rose from Rs 7,028.23 crore in FY22 to Rs 19,332.36 crore. In Q1 FY27, revenue grew 18.6% to Rs 23,166.42 crore, and net profit rose 27.6% to Rs 6,080.60 crore.
Debt to equity is 3.82 and return on equity is 16.68%. Bajaj Finance paid a dividend of Rs 6 per share for FY26, a yield of 0.63%. At a P/E of 28.77 against an industry P/E of 17.72, the stock trades above its industry multiple.
What to watch: The P/E of 28.77 sits above the industry P/E of 17.72, so earnings delivery matters for the valuation.
LIC Housing Finance: Large Home Loan Book Builds the Next Leg
LIC Housing’s roadmap rests on home loans for salaried and self-employed borrowers, backed by the distribution reach of the LIC group, with a large loan book and a trusted brand supporting origination.
Revenue grew from Rs 20,005.31 crore in FY22 to Rs 28,843.49 crore in FY26, a 44.2% rise, and FY26 revenue was 2.6% higher than FY25. FY26 net profit rose 3.0% to Rs 5,604.24 crore. Over four years, net profit rose from Rs 2,286.00 crore in FY22 to Rs 5,604.24 crore. In Q1 FY27, net profit rose 9.9% to Rs 1,499.03 crore.
Debt to equity is 6.70 and return on equity is 13.53%. LIC Housing paid a dividend of Rs 10 per share for FY26, a yield of 1.86%. At a P/E of 5.15 against an industry P/E of 17.72, the stock trades below its industry multiple.
What to watch: The P/E of 5.15 against an industry P/E of 17.72 leaves valuation less stretched, so the next quarters’ growth is the figure to follow.
REC Limited: Power Sector Financing Anchors the Roadmap
REC’s roadmap rests on financing for power and infrastructure projects across generation, transmission and distribution, with the build-out of the power grid supporting loan demand.
Revenue grew from Rs 39,339.20 crore in FY22 to Rs 59,628.35 crore in FY26, a 51.6% rise, and FY26 revenue was 5.7% higher than FY25. FY26 net profit rose 2.7% to Rs 16,308.17 crore. Over four years, net profit rose from Rs 10,035.70 crore in FY22 to Rs 16,308.17 crore.
Debt to equity is 6.05 and return on equity is 19.17%. At a P/E of 4.82 against an industry P/E of 17.72, the stock trades below its industry multiple.
What to watch: The P/E of 4.82 against an industry P/E of 17.72 leaves valuation less stretched, so the next quarters’ growth is the figure to follow.
Best Consumer Finance, Mortgage and Power Lending Stocks in India: Bajaj Finance vs LIC Housing vs REC on Key Financials
Among the best consumer finance, mortgage and power lending stocks in India, Bajaj Finance leads on FY26 revenue growth and FY26 net profit growth; LIC Housing ranks second on FY26 net profit growth and the lowest P/E; REC leads on return on equity and the lowest P/E. The table puts the numbers side by side.
| Metric | Bajaj Finance | LIC Housing | REC |
|---|---|---|---|
| FY26 revenue (Rs Cr) | 81,989.50 | 28,843.49 | 59,628.35 |
| FY26 revenue growth | 19.1% | 2.6% | 5.7% |
| FY26 net profit (Rs Cr) | 19,332.36 | 5,604.24 | 16,308.17 |
| FY26 net profit growth | 15.2% | 3.0% | 2.7% |
| Return on equity | 16.68% | 13.53% | 19.17% |
| P/E ratio | 28.77 | 5.15 | 4.82 |
| Debt to equity | 3.82 | 6.70 | 6.05 |
Lender earnings follow loan growth, funding costs and asset quality, so full-year numbers and quarterly trends together give a better view.
How to Evaluate Consumer Finance, Mortgage and Power Lending Stocks to Buy Before You Invest
A short checklist keeps the research consistent when you screen consumer finance, mortgage and power lending stocks and shortlist consumer finance, mortgage and power lending stocks to buy.
- Compare each stock’s P/E with its industry P/E, which is 17.72 for all three here.
- Check loan growth, asset quality and capital adequacy together.
- Check whether revenue growth is turning into profit growth, not only sales.
- Read loan growth against funding costs to see how growth is financed.
- Watch debt to equity and interest cover before sizing a position.
- Spread exposure across companies and business lines instead of one demand cycle.
Risks to Consider Before Investing in Consumer Finance, Mortgage and Power Lending Stocks
- Valuation: Bajaj Finance trades at 28.77 times earnings against an industry multiple of 17.72.
- Asset quality: A rise in overdue loans can reduce profit.
- Funding costs: Changes in borrowing costs can move spreads.
- Quarterly trends: A single weak quarter can change near-term earnings, so track results every quarter.
Download the Univest iOS App or Univest Android App to track Bajaj Finance, LIC Housing and REC live.
Annual reports and quarterly result presentations are the most reliable places to verify the numbers quoted here, because they show segment details, management commentary and the notes behind each figure.
Comparing a quarter with the same quarter of the previous year gives a cleaner reading than comparing it with the preceding quarter, since seasonal patterns affect many businesses in India.
Final Take: Which Stock Has the Strongest Roadmap?
These three lending stocks cover consumer loans, home loans and power sector lending. Bajaj Finance leads on FY26 revenue growth and FY26 net profit growth; LIC Housing ranks second on FY26 net profit growth and the lowest P/E; REC leads on return on equity and the lowest P/E.
Across consumer finance, mortgage and power lending stocks, each roadmap still has to turn growth into steady profit, so independent research and position sizing matter. Investors should consult a SEBI-registered advisor before acting on any of the consumer finance, mortgage and power lending stocks to buy discussed here.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
FAQs on Consumer Finance, Mortgage and Power Lending Stocks
Which are the best consumer finance, mortgage and power lending stocks in India with a strong roadmap?
Ans. Bajaj Finance, LIC Housing Finance and REC Limited stand out for their roadmaps in consumer loans, home loans and power sector lending. FY26 revenue growth was 19.1% at Bajaj Finance, 2.6% at LIC Housing and 5.7% at REC, and return on equity ranges from 13.53% to 19.17%.
Is Bajaj Finance a good stock to buy now?
Ans. Bajaj Finance has a debt to equity ratio of 3.82, a return on equity of 16.68% and a P/E of 28.77 against an industry P/E of 17.72. Valuation, asset quality and funding costs move results. This article is not investment advice, so consult a SEBI-registered advisor before deciding.
What is the P/E ratio of Bajaj Finance, LIC Housing and REC?
Ans. The P/E ratio is 28.77 for Bajaj Finance (industry 17.72), 5.15 for LIC Housing (industry 17.72) and 4.82 for REC (industry 17.72). Only Bajaj Finance trades at or above the industry multiple.
Which of these consumer finance, mortgage and power lending stocks has the highest return on equity?
Ans. REC Limited has the highest return on equity at 19.17%, followed by Bajaj Finance at 16.68% and LIC Housing Finance at 13.53%.
What are the risks of investing in consumer finance, mortgage and power lending stocks?
Ans. The main risks are valuation, asset quality, funding costs and quarterly trends. Bajaj Finance trades at 28.77 times earnings against an industry multiple of 17.72.
How did Bajaj Finance, LIC Housing and REC perform in Q1 FY27?
Ans. Bajaj Finance reported revenue of Rs 23,166.42 crore, up 18.6% year on year, and net profit rose 27.6% to Rs 6,080.60 crore. LIC Housing Finance reported net profit rose 9.9% to Rs 1,499.03 crore. REC Limited reported .
Do consumer finance, mortgage and power lending stocks pay dividends?
Ans. Bajaj Finance and LIC Housing pay dividends. The dividend yield is 0.63% for Bajaj Finance and 1.86% for LIC Housing, based on dividends declared for FY26.
How can I invest in consumer finance, mortgage and power lending stocks in India?
Ans. You can buy consumer finance, mortgage and power lending stocks through a demat and trading account on NSE or BSE after checking each company’s financials, margins and valuation. The Univest Screener lets you compare fundamentals before placing an order. Investments in securities are subject to market risk, so consider your risk profile first.