Buy IIFL Wealth; target of Rs 1193: Anand Rathi

Anand Rathi 's research report on IIFL Wealth

Of the big guns in the wealth business, IIFL Wealth is moving ahead with its stable ARR model, harnessing the vast growth potential in an under-penetrated wealth industry. Its business growth comes organically and through acquisitions. Its hallmark is low attrition rates (clients and RMs) even in a volatile environment. Higher dividend payouts render it attractive to shareholders.

Outlook

We initiate coverage on IIFL Wealth with a Buy rating, at a target of Rs1,193, implying 28% potential. We value it using a P/E multiple and assign 20x on FY23e earnings.