Getty Images has buy call on Poonawalla Fincorp with a target price of Rs 400. The current market price of is Rs 300.1. Time period given by analyst is one year when Poonawalla Fincorp Ltd. price can reach defined target.
Poonawalla Fincorp Ltd., incorporated in the year 1978, is a Small Cap company (having a market cap of Rs 23235.75 Crore) operating in NBFC sector.
Poonawalla Fincorp Ltd. key Products/Revenue Segments include Interest, Fees & Commission Income, Rental Income, Income From Sale Of Share & Securities for the year ending 31-Mar-2022.
Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 571.67 Crore, up 7.97 % from last quarter Total Income of Rs 529.46 Crore and up 18.31 % from last year same quarter Total Income of Rs 483.19 Crore. Company reported net profit after tax of Rs 140.92 Crore in latest quarter.
Investment Rationale
The brokerage sees PFL inching closer to its steady state RoA profile of 3.5-4% by FY25E as growth sustains and operating leverage kicks in beginning FY24. Its small size (size 1/6th-1/10th of relevant NBFC peers), access to capital and strong technology focus should result in RoA hitting 3.4% by FY25 (with upside risks through fee potential. It expects PFL’s valuation to expand as it begins delivering on its growth target with a stable asset quality. It believes with a steady-state RoE profile of 19-22%, the business will continue to command premium valuations over the medium term. It targets price of INR 400 is based on 4x Sep’24 P/BV.
Promoter/FII Holdings
Promoters held 61.49 per cent stake in the company as of 30-Jun-2022, while FIIs owned 7.35 per cent, DIIs 5.71 per cent.
Poonawalla Fincorp Ltd., incorporated in the year 1978, is a Small Cap company (having a market cap of Rs 23235.75 Crore) operating in NBFC sector.
Poonawalla Fincorp Ltd. key Products/Revenue Segments include Interest, Fees & Commission Income, Rental Income, Income From Sale Of Share & Securities for the year ending 31-Mar-2022.
Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 571.67 Crore, up 7.97 % from last quarter Total Income of Rs 529.46 Crore and up 18.31 % from last year same quarter Total Income of Rs 483.19 Crore. Company reported net profit after tax of Rs 140.92 Crore in latest quarter.
Investment Rationale
The brokerage sees PFL inching closer to its steady state RoA profile of 3.5-4% by FY25E as growth sustains and operating leverage kicks in beginning FY24. Its small size (size 1/6th-1/10th of relevant NBFC peers), access to capital and strong technology focus should result in RoA hitting 3.4% by FY25 (with upside risks through fee potential. It expects PFL’s valuation to expand as it begins delivering on its growth target with a stable asset quality. It believes with a steady-state RoE profile of 19-22%, the business will continue to command premium valuations over the medium term. It targets price of INR 400 is based on 4x Sep’24 P/BV.
Promoter/FII Holdings
Promoters held 61.49 per cent stake in the company as of 30-Jun-2022, while FIIs owned 7.35 per cent, DIIs 5.71 per cent.
(Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.
Experience Your Economic Times Newspaper, The Digital Way!
Read More News on
(What's moving Sensex and Nifty Track latest market news, stock tips and expert advice on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.)
...moreDownload The Economic Times News App to get Daily Market Updates & Live Business News.
Pick the best stocks for yourself
Powered by