Finance Stocks to Buy in November 2026: 5 Names on the Watchlist
- October 29, 2026
- Posted by: Ankit Jaiswal
- Category: Best Stocks
Bajaj Finance Rs 927.00. Cholamandalam Rs 1,557. Shriram Finance Rs 832.55. Muthoot Rs 2,442. Bajaj Finserv Rs 1,657. NSE prices, 29 Oct 2026.
Quick Answer
Five finance stocks to buy on the November 2026 watchlist are Bajaj Finance, Cholamandalam Investment and Finance, Shriram Finance, Muthoot Finance and Bajaj Finserv. All five grew revenue in their latest full year, and all five also grew net profit. Muthoot Finance has both the lowest P/E at 8.46 and the highest return on equity at 28.01%. Check each valuation against your own risk appetite before acting.
The finance stocks to buy in November 2026 start with five listed names: Bajaj Finance, Cholamandalam Investment and Finance, Shriram Finance, Muthoot Finance and Bajaj Finserv. Finance companies lend to consumers, vehicle buyers, small businesses and gold loan customers, so their earnings follow credit demand and funding costs.
This article ranks none of them as a sure thing. It lays out the numbers each company has reported, how the shares are priced today and what an investor should check before adding any of these finance stocks to buy to a portfolio. All prices are NSE quotes from 29 October 2026, and financials come from company filings.
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Which Are the Best Finance Stocks to Buy in November 2026?
The best finance stocks to buy in November 2026 for a watchlist are Bajaj Finance, Cholamandalam Investment and Finance, Shriram Finance, Muthoot Finance and Bajaj Finserv. They were picked because each has complete reported financials, profit in the latest quarter and an NSE listing. The table puts their market data side by side.
| Company | CMP (Rs) | Market Cap | P/E | ROE | Dividend Yield |
|---|---|---|---|---|---|
| Bajaj Finance | 927.00 | Rs 5,71,076 crore | 25.88 | 17.61% | 0.65% |
| Cholamandalam Investment and Finance | 1,557 | Rs 1,32,056 crore | 21.22 | 17.18% | 0.13% |
| Shriram Finance | 832.55 | Rs 1,95,730 crore | 15.43 | 11.39% | 1.04% |
| Muthoot Finance | 2,442 | Rs 96,935 crore | 8.46 | 28.01% | 1.24% |
| Bajaj Finserv | 1,657 | Rs 2,65,782 crore | 12.88 | 12.58% | 0.09% |
On valuation, Muthoot Finance and Bajaj Finserv trade below the industry P/E; Shriram Finance sits close to it; Bajaj Finance and Cholamandalam Investment and Finance carry a premium. Valuation is the first filter for any finance stocks to buy list, and it is covered again in the risk section.
Why These Finance Stocks to Buy Are in Focus
Rising consumer credit, vehicle sales and gold loan demand support non-banking finance companies, and the larger ones benefit from access to low-cost funding. The list covers India’s largest NBFC, vehicle finance specialists, the leading gold lender and a lending and insurance holding company. Investors weighing the best finance stocks in India usually compare asset quality, return on equity and borrowing costs.
Bajaj Finance: The NBFC Leader Among Finance Stocks to Buy
Bajaj Finance is India’s largest non-banking finance company by market value, lending across consumer, SME and mortgage segments. The stock trades at Rs 927.00 with a market capitalisation of Rs 5,71,076 crore and a P/E of 25.88, against an industry P/E of 16.13.
FY26 revenue rose 19.1% to Rs 81,990 crore and net profit rose 15.2% to Rs 19,332 crore. In the September 2026 quarter, revenue grew 22.9% year on year to Rs 24,576 crore, while net profit grew 28.7% to Rs 6,367 crore.
Return on equity is 17.61%, and the dividend yield is 0.65%. Promoters hold 54.67%, foreign institutions 19.79% and domestic institutions 17.05% as of September 2026. Domestic institutional holding has risen from 14.47% to 17.05% over the last year.
Cholamandalam Investment and Finance: The Vehicle Finance Specialist Among Finance Stocks to Buy
Cholamandalam Investment and Finance is a vehicle finance, home loan and small business lender in the Murugappa Group. At Rs 1,557, the stock has a market capitalisation of Rs 1,32,056 crore and trades at 21.22 times earnings, while the industry P/E is 16.13.
Reported numbers show FY26 revenue of Rs 31,539 crore, up 20.6% year on year, with net profit at Rs 5,229 crore, up 22.7%. The September 2026 quarter added revenue of Rs 9,395 crore (up 23.4%) and net profit of Rs 1,630 crore (up 40.6%).
Return on equity is 17.18%, and the dividend yield is 0.13%. Promoters hold 48.93%, foreign institutions 24.87% and domestic institutions 20.38% as of September 2026. Domestic institutional holding has risen from 17.27% to 20.38% over the last year.
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Shriram Finance: The Commercial Vehicle Lender Among Finance Stocks to Buy
Shriram Finance is a lender focused on commercial vehicle and used-truck financing. Its market capitalisation is Rs 1,95,730 crore, the share price is Rs 832.55 and the P/E of 15.43 compares with an industry P/E of 16.13.
Over FY26, net profit rose 6.2% to Rs 10,004 crore on revenue of Rs 48,193 crore, which was up 15.1%. The latest quarter, the September 2026 quarter, brought revenue of Rs 13,802 crore, up 15.8% year on year, and net profit of Rs 3,677 crore, up 59.2%.
Return on equity is 11.39%, and the dividend yield is 1.04%. Promoters hold 20.30%, foreign institutions 55.64% and domestic institutions 16.36% as of September 2026. Foreign institutional holding has risen from 47.22% to 55.64% over the last year.
Muthoot Finance: The Gold Loan Leader Among Finance Stocks to Buy
Muthoot Finance is India’s largest gold loan non-banking finance company. The stock trades at Rs 2,442 with a market capitalisation of Rs 96,935 crore and a P/E of 8.46, against an industry P/E of 16.13.
FY26 revenue rose 54.3% to Rs 31,263 crore and net profit rose 98.2% to Rs 10,607 crore. In the June 2026 quarter, revenue grew 34.5% year on year to Rs 8,695 crore, while net profit grew 43.1% to Rs 2,825 crore.
Return on equity is 28.01%, and the dividend yield is 1.24%. Promoters hold 73.35%, foreign institutions 9.72% and domestic institutions 11.40% as of September 2026.
Bajaj Finserv: The Lending and Insurance Holding Company Among Finance Stocks to Buy
Bajaj Finserv is the holding company for Bajaj Finance and the Bajaj Allianz insurance businesses. At Rs 1,657, the stock has a market capitalisation of Rs 2,65,782 crore and trades at 12.88 times earnings, while the industry P/E is 16.13.
Reported numbers show FY26 revenue of Rs 1,50,530 crore, up 13.2% year on year, with net profit at Rs 19,669 crore, up 12.0%. The June 2026 quarter added revenue of Rs 42,037 crore (up 19.1%) and net profit of Rs 6,297 crore (up 18.2%).
Return on equity is 12.58%, and the dividend yield is 0.09%. Promoters hold 58.65%, foreign institutions 8.16% and domestic institutions 11.10% as of September 2026.
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Growth Snapshot: Latest Full Year and Latest Quarter
The table compares year-on-year growth in revenue and net profit for all five finance stocks, using filed results.
| Company | Full-Year Revenue Growth | Full-Year Profit Growth | Latest Quarter | Quarter Revenue Growth | Quarter Profit Growth |
|---|---|---|---|---|---|
| Bajaj Finance | 19.1% | 15.2% | Sep 2026 | 22.9% | 28.7% |
| Cholamandalam Investment and Finance | 20.6% | 22.7% | Sep 2026 | 23.4% | 40.6% |
| Shriram Finance | 15.1% | 6.2% | Sep 2026 | 15.8% | 59.2% |
| Muthoot Finance | 54.3% | 98.2% | Jun 2026 | 34.5% | 43.1% |
| Bajaj Finserv | 13.2% | 12.0% | Jun 2026 | 19.1% | 18.2% |
Factors That Move Finance Stocks to Buy
Four factors tend to drive finance stocks, and each one is worth checking before a purchase.
- Credit demand: Consumer, vehicle and small business loans drive growth.
- Funding costs: Interest rate moves change margins.
- Asset quality: Lower bad loans mean steadier profit.
- Gold prices: Higher gold prices support loan volumes for gold lenders.
Risks to Keep in Mind Before Buying Finance Stocks
The first risk is asset quality, since a stress in unsecured or vehicle loans can raise credit costs. The second is funding cost, because NBFCs rely on borrowings and rate moves affect margins. High debt-to-equity is normal for lenders, so judge debt in context rather than against industrial companies.
On the numbers, Bajaj Finance trades at the highest P/E on this list at 25.88, so its earnings need to keep growing to support the price. Finance stocks to buy can still fall when markets turn weak, and a staggered entry has historically suited investors better than a lump-sum purchase.
How to Choose Finance Stocks to Buy
- Check ROE: A return on equity above 15% suggests strong lending economics.
- Review asset quality: Falling bad loans and adequate provisions signal a stronger book.
- Study funding mix: A diverse and low-cost funding base helps margins.
- Compare valuations: Look at P/E and P/B against peers.
How to Invest in Finance Stocks
- Shortlist two or three companies from this list that match your risk appetite.
- Open the Univest Screener and compare P/E, ROE and debt for each stock.
- Check the latest quarterly results and shareholding pattern on NSE or BSE.
- Decide an amount you can hold for three to five years and split it into two or three purchases.
- Review the holding after every quarterly result instead of reacting to daily price moves.
Conclusion
Muthoot Finance offers both the lowest P/E on this list at 8.46 and the highest return on equity at 28.01%, and Muthoot Finance posted the fastest net profit growth in its latest full year at 98.2%. Among the best finance stocks in India, these five give investors a spread of size, valuation and growth, so the right pick depends on risk appetite and holding period. Spread the entry, keep position sizes sensible and consult a SEBI-registered advisor before investing in any of these finance stocks to buy.
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).
Frequently Asked Questions on Finance Stocks to Buy
Which are the best finance stocks to buy in November 2026?
Ans. The five finance stocks on the November 2026 watchlist are Bajaj Finance, Cholamandalam Investment and Finance, Shriram Finance, Muthoot Finance and Bajaj Finserv. Muthoot Finance has both the lowest P/E at 8.46 and the highest ROE at 28.01%, and Muthoot Finance grew net profit 98.2% in its latest full year. This is educational content, not investment advice, so please consult a SEBI-registered advisor.
Is Bajaj Finance a good finance stock to buy?
Ans. Bajaj Finance is the largest company on this list with a market capitalisation of Rs 5,71,076 crore and a P/E of 25.88 against an industry P/E of 16.13. Its FY26 revenue rose 19.1% and net profit rose 15.2%, with return on equity at 17.61%. Whether it suits you depends on your risk appetite and holding period, so please consult a SEBI-registered advisor before investing.
Are finance stocks expensive right now?
Ans. Valuations vary across the group. Bajaj Finance trades at a P/E of 25.88, Cholamandalam Investment and Finance trades at a P/E of 21.22, Shriram Finance trades at a P/E of 15.43, Muthoot Finance trades at a P/E of 8.46, Bajaj Finserv trades at a P/E of 12.88, against an industry P/E of 16.13. Higher multiples reflect faster growth but also leave less room for earnings misses, so entry price deserves attention.
Which finance stocks pay a dividend?
Ans. Dividend yields on this list are Bajaj Finance 0.65%, Cholamandalam Investment and Finance 0.13%, Shriram Finance 1.04%, Muthoot Finance 1.24%, Bajaj Finserv 0.09%. Yields are modest across the group, so most investors look at these stocks for growth in earnings rather than for income, and payouts can change with company profits.
Which finance stock has the highest return on equity?
Ans. Muthoot Finance has the highest ROE on this list at 28.01%, followed by Bajaj Finance at 17.61% and Cholamandalam Investment and Finance at 17.18%. A higher ROE shows a company earns more profit on shareholder capital, but it should be read alongside valuation and debt.
What are the risks of investing in finance stocks?
Ans. The main risks are asset quality stress, funding cost swings and the high borrowings typical of lenders. On this list, Bajaj Finance trades at the highest P/E of 25.88, which leaves less room for earnings disappointments. Staggered buying and a long holding period can help manage these risks.
How can I invest in finance stocks in India?
Ans. You can buy these stocks directly on NSE or BSE through a demat account, and compare them first on the Univest Screener using P/E, ROE and debt. Many investors split the amount across two or three purchases and review the holding after each quarterly result. Sector-themed mutual funds and ETFs are another route for investors who prefer diversification.
