Total income in the quarter rose to Rs 519 crore as against Rs 394 crore a year ago, Poonawalla Fincorp said in a regulatory filing. (Representative Image)
Share price of Poonawalla Fincorp gained over 5 percent on January 24 after the non-banking financial company (NBFC) reported 88 percent on-year jump in its net profit for the October-December quarter.
In an exchange filing, the company said it recorded its highest ever net profit at Rs 150 crore - up 88 percent on-year and 16 percent on-quarter. Quarterly disbursements at Rs 3,369 crore were also highest ever, up by 157 percent YoY and 8 percent QoQ.
At 10am, the stock was quoting at Rs 305 apiece, higher by 5.21 percent. Trading volumes at 4.5 million shares are almost double the 20-day average volume of 2.5 million. In the past six months, it has gained over 16 percent.
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The company's assets under management (AUM) grew 28 percent on-year and 6 percent sequentially to Rs 13,929 crore.
"We are thrilled to be in the middle of this high growth phase with improved asset quality and sustainable profitability for PFL. The quarter gone by, witnessed all-round performance on the back of relentless execution with highest ever disbursement, PAT and ROA, leading us to a high growth trajectory," Poonawalla Fincorp's Managing Director CA Abhay Bhutada said.
Domestic brokerage Motilal Oswal Financial Services has a 'buy' rating on the stock with a target price of Rs 350 apiece, indicating 21 percent upside from January 23 close of Rs 290.
"It has strong moats on the liability front, supported by its strong parentage. At its current size (one-fifth to one-tenth of peers in similar segments), a huge opportunity beckons in its target product segments," it said.
On the asset quality front, Poonawalla Fincorp's gross non-performing assets (NPA) at 1.69 percent in Q3 was down by 236 basis points YoY and 8 basis points QoQ. Net NPA at 0.89 percent was down by 108 basis points YoY and 5 basis points QoQ.
One basis point is one-hundredth of a percentage point.
