Axis Direct's report on PTC India Financial Services
PTC India Finance (PFS) reported PAT growth of 20% YoY at Rs 83 cr led by strong growth of 26% YoY in interest income and similar increase in operating expenses. Loan book grew by 23% YoY to Rs 9,613 cr, management maintained their guidance of 30-40% loan book growth for next 2-3 years led by renewable energy.
Outlook
We expect PFS’s business to grow rapidly over next couple of years with loan book growth of 29% CAGR (FY16-18E) and PAT earnings growth of 30% CAGR (FY16-18E). At CMP the stock trades at 1.1x FY18E P/BV. We value PFS at FY18E P/BV multiple of 1.2x to arrive at target price of Rs.49 and continue to have BUY rating.
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