Reduce Poonawalla Fincorp, target price Rs 214: ICICI Securities

ICICI Securities has reduce call on Poonawalla Fincorp with a target price of Rs 214. The current market price of Poonawalla Fincorp is Rs 222.35. 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 17078.05 Crore) operating in NBFC sector.

Poonawalla Fincorp Ltd. key Products/Revenue Segments include Interest, Fees & Commission Income, Lease Rentals, Income From Sale Of Share & Securities for the year ending 31-Mar-2021.

Financials


For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 515.80 Crore, up .63 % from last quarter Total Income of Rs 512.58 Crore and down -13.43 % from last year same quarter Total Income of Rs 595.81 Crore. Company reported net profit after tax of Rs 102.19 Crore in latest quarter.

Investment Rationale

The brokerage expected that an RoA profile of >3%, coupled with AUM growth of 25%/35% for FY23/FY24 and gained confidence on management execution capabilities, can rerate the stock to 3.5x FY24E book. However, the latest developments at senior management level could cap rerating in the interim at 2.25x book. It downgrades the stock to REDUCE from Buy with a revised target price of Rs214 (earlier: Rs333).

Promoter/FII Holdings

Promoters held 68.25 per cent stake in the company as of 31-Dec-2021, while FIIs owned 5.82 per cent, DIIs 6.55 per cent.

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