Avendus explains why it is the 'opportune time' to invest in MFI stocks

MFI stocks india list: As the MFI industry navigates through the transitional phase, Avendus lists why it is bullish on the sector from a medium-to-long term perspective, and what should investors do

Microfinance industry in India: The micro-finance players in India are on a ‘fundamentally’ strong growth runway, making them ripe for a long-term rerating, believe analysts at Avendus. 

Though the near-term outlook seems challenging, given overleveraging, increased regional concentration, and evolving regulatory guidelines, analysts believe industry players are in the middle of their balance sheet clean-up to restore stability and foster sustainable growth. 

  "In financial year 2024-25 (FY25), most MFIs adopted a conservative approach, absorbing significant Expected Credit Loss (ECL) to proactively clean-up their balance sheets. In the March quarter alone (Q4FY25), the ECL amount stood at