Buy Equitas Holdings, target price Rs 110: Motilal Oswal

Motilal Oswal has buy call on with a target price of Rs 110. The current market price of Equitas Holdings Ltd. is Rs 100.3. Time period given by analyst is one year when Equitas Holdings Ltd. price can reach defined target.

Equitas Holdings Ltd., incorporated in the year 2007, is a Mid Cap company (having a market cap of Rs 3320.49 Crore) operating in Holding Company sector.

Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 1002.39 Crore, down -13.02 % from last quarter Total Income of Rs 1152.44 Crore and up 24.50 % from last year same quarter Total Income of Rs 805.16 Crore. Company reported net profit after tax of Rs 104.06 Crore in latest quarter.

Investment Rationale
NIMs to remain under pressure at ~7.6%  Elevated credit cost to impact earnings  Watchful of asset quality in MSME book; focus to remain on CE and restructuring book  Business growth to moderate; management commentary would be key.

Promoter/FII Holdings
Promoters held 0 per cent stake in the company as of Sept 30, 2020, while FIIs held 20.7 per cent, DIIs 34.2 per cent and public and others 45.1 per cent.