BQ Prime'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 BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Systematix Research Report
IIFL Finance Ltd. reported strong performance (on expected lines) aided by strong growth in assets under management (25% YoY) and 30 basis points QoQ expansion in net interest margins.
Though the pace of growth moderated in home loan/gold loan/ business loan segments, the same was compensated by a stronger 17% QoQ growth in microfinance portfolio.
Asset quality continue to improve, with gross/ net stage III at 2.1%/ 1.1% (versus 2.4%/ 1.2% in Q2) and credit cost being stable at 1.7%.
We estimate strong 25% compound annual growth rate in IIFL's AUM to deliver 29% CAGR in earnings over FY22‐25E.
An asset-light model, coupled with operating leverage should enable IIFL's return on asset/return on equity to improve to ~4%/ 21% by FY25E from 2.7%/ 20% in FY22, respectively.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime 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 BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
