IIFL Finance share price will be in focus on Friday after brokerage firm Investec initiated its coverage on the non-banking financial company (NBFC) with a bullish view, as it believes the firm is on a multi-engine recovery.
The company had asset under management (AUM) of Rs 1 lakh crore in March 2026, and is a leading NBFC focused on gold loans, contributing majority of its business, home loans and MFI.
The brokerage firm said that the gold finance industry is at a turning point, as the recent regulatory changes - removal of LTV for income generating loans and removal of restriction on branch additions - have created positive momentum for gold financing.
Terming IIFL's gold finance business as the “crown jewel”, Investec noted that the company has built a formidable gold loan franchise in the past 15 years and is now the third largest gold finance NBFC.
IIFL delivered ROA of 3% and ROE of 16% in FY26 despite the business being impacted by RBl embargo in FY25.
Meanwhile, with the new management in-place at IIFL Home, Investec expects recovery in growth. On the other hand, the brokerage added that MFI segment is on the cusp of an upcycle with Samasta to benefit.
Investec expects IIFL Finance to deliver AUM and PAT CAGR of 18% and 37% over FY26-29E as the legacy issues are in the base. Gold finance remains the key driver while other businesses are turning around.
The brokerage firm initiated its coverage on IIFL Finance shares with a ‘Buy' rating and a target price of Rs 770 apiece, implying an upside potential of nearly 27% from Thursday's closing price. It believes valuations are reasonable at 1.3 FY28E P/B.
On Thursday, IIFL Finance share price ended 0.32% higher at Rs 607.15 apiece on the BSE.
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