Buy IIFL Wealth; target of Rs 1500: Motilal Oswal

Motilal Oswal's research report on IIFL Wealth

PAT grew 7% QoQ to INR1.03b (8% beat) in 4QFY21. The beat was driven largely by higher-than-expected TBR income. Core revenue (excluding other income) was largely flat at INR9.2b and PAT was up ~87% YoY to INR3.7b in FY21. Excluding the impact of other income, core operating profit was also flat YoY at INR3.5b.

Outlook

However, yields are still sub-par. In 4QFY21, net flows have been encouraging. We keep our estimates largely unchanged. Buy with a TP of INR1,500/share (25x FY23E EPS).