Buy Spandana Sphoorty; target of Rs 1075: Motilal Oswal

Motilal Oswal is bullish on Spandana Sphoorty has recommended buy rating on the stock with a target price of Rs 1075 in its research report dated April 30, 2024.

Broker Research

April 30, 2024 / 15:22 IST

BUY

26 Aug, 2025 12:21

Volume

Todays L/H

Motilal Oswal's research report on Spandana Sphoorty

Spandana’s 4QFY24 PAT grew 22% YoY to ~INR1.29b (in line), driven by NIMexpansion despite higher credit costs. In 4Q, NII grew 43% YoY to ~INR3.85b(9% beat). FY24 PAT stood at ~INR5b (vs. INR124m in FY23).PPoP in 4Q grew ~2% YoY to INR2.7b. Spandana continued to pursuecustomer acquisition-led growth with the addition of ~440K customers (up30% QoQ). The total borrower count rose ~47% YoY to 3.32m.
Spandana has refined its processes by adopting the right tools andtechnologies. The new management team has fortified governance and riskcontrols and scaled up multiple technology-related initiatives.Spandana trades at 1.2x Mar’26E P/BV, with RoA/RoE of 4.4%/17% in FY26E.Given the strong opportunity in the microfinance sector,

Outlook

we think Spandanais poised for a further rerating if it navigates Project Parivatan well anddemonstrates stability in forwards flows and credit costs. Maintain BUY with a TP of INR1,075 (premised on 1.5x FY26E BV).

For all recommendations report, click here