FedFina Stock, Trading Below IPO Price, Receives ‘Buy’ Ratings from 3 Brokerages with Potential Upside of up to 47%

FedFina, currently priced at ₹125, is down almost 11% from its IPO price. Despite a weak debut, brokerages rate it a ‘buy,’ citing its diverse product portfolio and strong parentage.

In March, the stock recovered by 5%, following three months of losses. The IPO, valued at ₹1,092.26 crore, was subscribed 2.24 times, with an issue price range of ₹133-140. It consists of a fresh equity issue of ₹600 crore and an offer-for-sale of 35,161,723 equity shares.

FedFina reported a 27.8% YoY rise in net profit for Oct-Dec 2023, reaching ₹65.4 crore. The company’s gross non-performing assets (NPA) declined to 2.19%, with net NPA at 1.66%.

Brokerages’ Recommendations:

  1. ICICI Securities: Target price of ₹184, indicating over 47% potential upside. Recognizes FedFina’s impressive growth rate and diverse product offerings, particularly tailored to the MSME segment.
  2. JM Financials: Target price of ₹160, implying a 28% upside potential. Highlights FedFina’s focus on secured asset classes, strong returns, and low competition.
  3. Equirus Securities: Target price of ₹160, with a 28% upside. Acknowledges FedFina’s robust parentage, diverse secured portfolio, and predicts a 29-30% AUM CAGR.

Despite trading below IPO price, these ratings suggest confidence in FedFina’s growth potential and sustained profitability.

Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.​​
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