Buy Spandana Sphoorty; target of Rs 1361: Anand Rathi

Anand Rathi's research report on Spandana Sphoorty

Spandana Sphoorty had a strong Q4, improving across all parameters. Key positives: 1) better asset quality (GNPA down 11bps q/q), 2) higher NIM (up 130bps q/q), 3) 41% y/y AUM growth and 4) strong profitability (~5% RoA). We are bullish on the MFI category and expect the medium-term business momentum to be strong.

Outlook

We maintain a Buy, at a higher 12-month TP of Rs1,361, 1.9x P/ABV on its FY26e book.

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