Ambit starts coverage on India's Northern Arc Capital with 'buy' rating

Northern ARC Capital

24/12/2025 05:24

** Ambit Institutional Equities starts coverage on Northern Arc Capital Ltd NORR.NS with 'buy' rating, PT at 326 rupees
** NORR up 1.4% at 257.4 rupees
** Brokerage says market participants are underestimating prospects for improvement in NORR’s NIM and ROE due to the legacy wholesale mix of its loanbook and recent high credit costs

** Ambit's analysts point out since pivoting to more retail lending in FY22, ROE expanded 410 bps, projecting that continued transition to high-margin retail will drive 15.7% ROE by FY28
** NORR's long experience in placements and fund management will boost fee income, helping it absorb higher credit costs - Ambit
** Ambit says longer-term growth longevity levers exist in scaling up vehicle/affordable home finance
** NORR up ~17% YTD so far

 (Reporting by Meenakshi Maidas in Bengaluru)

 ((meenakshi.maidas@thomsonreuters.com;))