Poonawalla Fincorp’s stock rose more than 5% on January 24 after the non-banking financial company (NBFC) announced an 88 percent year-on-year increase in net earnings for the October-December quarter.
According to an exchange statement, the business reported its highest-ever net profit of Rs 150 crore, up 88 percent year over year and 16 percent quarter over quarter. Quarterly payments of Rs 3,369 crore were also the biggest ever, increasing by 157 percent year over year and 8 percent quarter over quarter.
At 10 a.m., the stock was trading at Rs. 305 per share, up 5.21 percent. The 4.5 million-share trading volume is nearly double the 20-day average volume of 2.5 million. It has increased by more than 16% in the last six months.
Assets under management (AUM) increased by 28 percent year on year and 6 percent sequentially to Rs 13,929 crore.
“We are happy to be in the midst of this high growth era for PFL, with better asset quality and long-term profitability. The previous quarter saw all-around performance as a result of persistent execution, with the highest ever disbursement, PAT, and ROA, propelling us to a high growth trajectory “CA Abhay Bhutada, Managing Director of Poonawalla Fincorp, stated.
Motilal Oswal Financial Services has a ‘buy’ rating on the company with a target price of Rs 350 per share, representing a 21% increase from the January 23 closing of Rs 290.
“It has strong liability moats, which are bolstered by its solid parentage. At its current scale (one-fifth to one-tenth of rivals in similar categories), the target product segments present a big opportunity “It stated.
Poonawalla Fincorp’s gross non-performing assets (NPA) were 1.69 percent in Q3, down 236 basis points year on year and 8 basis points quarter on quarter. Net NPA was 0.89 percent, down 108 basis points year on year and 5 basis points quarter on quarter.
A basis point is equal to one hundredth of a percentage point.