Shares of Poonawalla Fincorp surged over 4 percent to Rs 469 per share on June 3 after the company said that its gross non-performing asset (NPA) achieved a significant milestone below 1 percent and net NPA below 0.5 percent as of May 31, 2024.
So far this year, the stock of this NBFC major rose 4 percent, underperforming 6 percent surge in the benchmark Nifty 50 index. Earlier, Poonawalla Fincorp shares had hit 52-week high of Rs 519 per share on January 19, 2024.
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"With combined efforts of business growth, prudent credit policies & improved collection efficiency, the GNPA and NNPA numbers have further improved to less than 1 percent and 0.5 percent respectively, as of May 31, 2024," the company said in an exchange filing.
In the January-March quarter (Q4FY24), Poonawalla Fincorp reported highest-ever quarterly net profit at Rs 332 crore, up 84 percent on-year. Total revenue also jumped by 58 percent YoY to Rs 915 crore in Q4FY24 from Rs 577 crore in the year-ago period.
The non-bank major also clocked 55 percent YoY growth in AUM to Rs 25,003 crore in Q4FY24, while net interest margin expanded by 4 basis points sequentially to 11.06 percent.
Analysts at JM Financial shared a 'buy' rating on Poonawalla Fincorp and set target price at Rs 620 per share.
"We believe that the recent managment transition has strengthened the company's capabilities further and expect them to deliver AUM CAGR of 41 percent over FY24-26E with RoA/RoE of 4.9 percent/18.4 percent in FY26E. The company will emerge as a formidable player with unique positioning in areas of product, segment, and operational model," they said.
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