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Poonawalla Fincorp Shares Jump 7 Percent After Strong Q2 Show
- •Shares of Poonawalla Fincorp surged over 7 percent following a robust second-quarter performance with sharp earnings growth and expanding AUM.
- •Profit after tax multiplied significantly to 375 crore rupees from 74 crore rupees in the previous year.
- •Assets under management increased by 55.1 percent year-on-year to 74,008 crore rupees.
- •Major brokerages including UBS and Motilal Oswal remain bullish on the stock, with target prices ranging up to 600 rupees.
Key Questions Answered
Poonawalla Fincorp reported a profit after tax (PAT) of ₹375 crore for the second quarter, surging significantly from ₹74 crore in the previous year. Its assets under management (AUM) reached ₹74,008 crore, reflecting a 55.1% year-on-year growth.
Global investment banking firms are bullish on the stock following its strong Q2 performance. UBS has a buy rating with a target price of ₹600 per share, Motilal Oswal set a target price of ₹570 per share, and JM Financial upgraded its target price to ₹550.
The company's robust growth was driven by newer segments including prime personal loans, gold, and education loans. Additionally, strong underwriting and collection practices helped improve asset quality, with gross non-performing assets (GNPA) improving to 1.2% and credit costs declining sequentially.
