Why are NBFCs like L&T Finance & Mahindra Finance failing to turn? Viral Shah answers

economictimes.indiatimes.com:

Viral Shah, VP, IIFL Securities, says L&T Finance shifted its focus to retail about three to four years ago, targeting profitable yet riskier segments like microfinance and personal loans, along with mortgages. However, this reliance on high-risk areas is causing issues. In contrast, Mahindra Finance struggles due to its limited expansion beyond vehicle finance and its dependence on its parent company, compounded by a tendency to overpromise and underdeliver.

I want to understand the entire setup for the NBFC space. We are done with the Q3 earnings and there are a lot of hits and misses in the NBFC space. What is the setup looking like?
Viral Shah: I would say now we are in a realm where we need to differentiate between different NBFCs. There are fixed rate NBFCs; floating rate NBFCs, primarily HFCs, and in terms of the broad theme that we are now going ahead looking at it is that there is going to be a continued moderation in growth. In pockets, the asset quality is still worsening. In some pockets, there are signs that it could be peaking or it is closer to peaking in a couple of quarters and in some other segments, we may see that the tailwinds of rate cuts that RBI has done probably will flow through in the numbers, though of course it is built into the expectations already.

For two years analysts have been saying buy L&T Finance, buy Mahindra & Mahindra Finance, their turn will come. The problem is that the turn is not coming. I thought it would be like a Hindi movie, good start, bad interval, and then great