Anand Rathi Initiates "Buy" On Midcap NBFC Stock, Sees Robust 44% Upside, Soars Overs 1600% In 3 Yrs

Anand Rathi in its recent report on Poonawalla Fincorp Ltd assigns a "Buy" with a target price of Rs 417 apiece. The brokerage sees a potential upside of up to 44% if the stock is purchased at the current market price. Poonawalla Fincorp is a midcap financial sector company that operates as a non-banking finance company (NBFC). Poonawalla Fincorp serves customers in India. It has a market capitalisation of Rs 22,276.44 crore.

Poonawalla Fincorp's Stock Performance & Returns

The shares of Poonawalla Fincorp last traded at Rs 291.15 apiece on NSE. The stock recorded the 52 week high on 13 April 2022 at Rs 343.80 apiece and 52 week low on 20 June 2022 at Rs 209.15 apiece.

The share gained 5.62% in the past 1 week. However, it gave 0.15% negative return in the past 1 month and 4.18% negative return in the past 3 months. It has given 4.13% in the past 1 year. It has given 1622.78% robust positive returns in the past 3 years. In the past 5 years, it has given 79.56% positive return.

Building a profitable Fintech at scale

According to Anand Rathi, The erstwhile Magma Fincorp, now Poonawalla Fincorp has seen perhaps, one of the fastest turnarounds in the BFSI sector. Poonawalla Fincorp (PFL) is now a tech-led high growth NBFC backed by a strong promoter and having top notch processes and best-in-class cost-of-funds. "With digital as core for the new management, we expect robust growth, competitive cost of funds and tech savviness to drive a 38% loan CAGR over FY23-25e for the standalone unit. We retain our Buy stance on the company with a target price of Rs.417, valuing it at 3.0x FY25e standalone P/BV, derived using a multi-stage DDM method," the brokerage has said.

Disclaimer - The stock has been picked from the brokerage report of Anand Rathi. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.