Poonawalla Fincorp has undergone a senior management change, with a new MD and leadership team in place, and has consolidated its business lines leading to calibrated disbursement growth. In Q2 FY26, AUM grew by a robust 68% YoY to Rs 478 billion, driven by strong traction across both existing and newly-launched verticals.
NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Nirmal Bang Report
Poonawalla Fincorp Ltd.’s Q2 FY26 performance was below consensus estimates. PAT came in 25% lower due to higher operating costs.
Asset quality improved during the quarter, primarily driven by effective resolution of the erstwhile STPL portfolio.
Poonawalla Fincorp is leveraging AI-led digital journeys alongside an aggressive branch rollout (400 planned by FY26; 80 already live), especially in Tier 2/3 cities, to scale up the gold loan and consumer businesses.
We remain watchful of the credit cost trend going forward and factor in elevated opex to support new verticals. We roll forward our valuation to Sept-27E adjusted book value and introduce FY28 estimates with an unchanged multiple of 3.3x, giving us a target price of Rs 425.
We maintain Sell on the stock. Currently stock trades at 3.8x at Sept-27E ROA/ROE of 1.2%/10.3%.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
RECOMMENDED FOR YOU
Why Now Is The Right Time To Buy United Breweries Stock? Nirmal Bang Lists Five Key Reasons
'Buy' Dixon Technologies Shares Maintains Nirmal Bang On Robust Growth Trajectory
Poonawalla Fincorp Share Price Hits One-Year High As Promoter Infuses Liquidity
Poonawalla Fincorp Approves Raising Up To Rs 1,500 Crore Via NCDs
POPULAR