Poonawalla Fincorp Ltd. Brokerage/Research Reports, analyst Research Reports (2024)

Broker Report

Resilient business momentum; NIM compression despite stable cost of funds

KRChoksey

Net Interest Income (NII) for Q1FY25 increased by 36.8% YoY (+2.4% QoQ) to INR 5,761 Mn. NII growth was 4.0% lower than our estimates due to lower-than-expected AUM yields.

Broker Report

Steady quarter; aspires for 5–6x AUM over next 5–6 years

ICICI Securities Limited

Poonawalla Fincorp’s (Poonawalla) new MD & CEO – Arvind Kapil – revealed that its guiding philosophy across businesses would be productivity, predictability and sustainability.

Broker Report

New management with fresh strategic vision; execution key to retain premium valuation

Emkay

Poonawalla reported a good quarter, with profit, AUM growth, asset quality, and credit cost broadly in-line-to-slightly-better than consensus/our estimates.

Broker Report

Earnings miss due to NIM compression; loan growth strong

Motilal Oswal

Poonawalla Fincorp (PFL)’s 1QFY25 NII grew ~37% YoY to ~INR5.8b (5% miss), while its PPoP increased ~47% YoY to ~INR4.3b (9% miss).

Broker Report

Consumer segment continues to drive robust business growth

KRChoksey

Poonawalla Fincorp reported a decent set of numbers with continued robust business momentum and improvement in asset quality. Net Interest Income (NII) for Q4FY24 increased by 48.1% YoY (+14.6% QoQ) to INR 5,625 Mn.

Broker Report

Operating profit in line; earnings beat due to lower tax rate

Motilal Oswal

Poonawalla Fincorp (PFL)’s 4QFY24 NII grew 48% YoY to ~INR5.6b (in line),
while its PPoP surged 103% YoY to ~INR4.1b (in line). PFL’s 4QFY24 PAT
jumped 84% YoY/25% QoQ to ~INR3.3b (9% beat), while its FY24 normalized
PAT grew 75% YoY to ~INR10.3b

Broker Report

Earnings in line despite NIM compression

Motilal Oswal

Broker Report

KRChoksey

Poonawalla Fincorp Ltd has a strong aspiration to be amongst India's Top 3 NBFCs in consumer and MSMEs with a risk-calibrated accelerated growth of 3x from the FY21 AUM levels. The NBFC is laser-focused on its target segments of consumers & MSMEs and plans to accelerate its strategy of being a tech-led, digital-first retail lending franchise.

Broker Report

Pursuing strong and sustainable profitability

Motilal Oswal

Broker Report

Sustained growth momentum driving operating leverage; asset quality remains robust

ICICI Securities Limited

Poonawalla Fincorp (PFL) continued to deliver on its stated strategy with RoA sustaining at 4.8% driven by strong AUM growth at ~10% QoQ. Notably, despite the strong growth momentum, total operating expenses continued to decline (down 11% QoQ in Q1FY24) resulting in cost-income ratio falling to 38% in Q1FY24 from 58% in Q1FY23.

Broker Report

Operating efficiencies playing out; asset quality healthy

Motilal Oswal

Broker Report

Margin expansion aided profitability; asset quality healthy

Motilal Oswal

Broker Report

In a high-growth phase; FY23 performance enhances confidence in the long-term guidance

ICICI Securities Limited

Poonawalla Fincorp (PFL) has delivered on its stated strategy in FY23, registering an exit-RoA of 5.0%, FY23 AUM growth of 37%, FY23 focused AUM growth of 73%, gross stage-3 pool at 1.44% and net stage-3 at 0.78%. FY23 performance enhances confidence in management’s long term AUM growth guidance of 35- 40%, earnings growth of 30-35%, GNPA in the range of 1.3-1.8%, NNPA in the range of 0.5-0.9% and RoA of 4.0-4.5%.

Broker Report

Poonawalla Fin

Anand Rathi

Broker Report

In a high-growth phase; 9MFY23 performance enhances confidence in the long-term guidance

ICICI Securities Limited

Poonawalla Fincorp (PFL) has delivered on its stated strategy in Q3FY23 registering an RoA of 4.5%, standalone disbursem*nt growth of 8% QoQ, focused AUM growth of 10% QoQ, gross stage-3 pool at 1.69% and net stage-3 at 0.89%.

Broker Report

Steady performance; sequential NIM expansion of 30bp

Motilal Oswal

Broker Report

WINDS of CHANGE, GIVING WINGS TO FLY!

Motilal Oswal

Broker Report

In a high-growth phase; recoveries to cushion credit cost trajectory

ICICI Securities Limited

Poonawalla Fincorp (PFL) delivered on its stated strategy in Q2FY23 registering an RoA of 3.6%, organic disbursem*nt growth of 32.4% QoQ, focused AUM growth of 10.6% QoQ, net stage-3 at 0.83%, and credit cost reversals.

Broker Report

POONAWALLA FINCORP LIMITED - Initiating Coverage

LKP Securities

Broker Report

Magma Fincorp

ICICI Securities Limited

Magma Fincorp was incorporated in 1988 and began by offering vehicle and equipment financing solutions to individuals and small businesses in India. It later included CV, tractor finance, SME loans as well as insurance. As on Q1FY20, it has an AUM of | 17312 crore across auto, agriculture, SME &...