Why Did Anand Rathi Retain a Buy on Poonawalla Fincorp After Solid Q2 FY26 Growth?
About Poonawalla Fincorp: Poonawalla Fincorp operates as a non-banking financial company (NBFC) focused on retail lending. The company reported robust growth in Q2 FY26 with improved profitability and asset quality, reinforcing investor confidence in its digital-first strategy.
Anand Rathi maintained a Buy rating on Poonawalla Fincorp with a target price of ₹622 against a CMP of ₹488.55. The brokerage cited strong AUM growth of 68% YoY and 15.6% QoQ, alongside a sharp rise in Net Interest Margin (NIM) and stable credit costs.
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| Metric | Value | YoY / QoQ Notes |
|---|---|---|
| Target Price | ₹622 | Upside of ~27% |
| AUM Growth | 68% | Strongest in NBFC sector |
| NIM (FY27E) | 9% | Expected improvement |
| Gross NPA | 1.6% | Asset quality improved sharply |
| Credit Cost (FY27–28) | Tapering | Due to stronger risk control |
Strengths: Robust capital infusion of ₹1,500 crore by promoter, superior technology platform, and diversification across lending products.
Weaknesses: Premium valuations and margin compression risk in a rising rate cycle.
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Investor Takeaway: Poonawalla Fincorp’s strong AUM momentum, improved asset quality, and growing NIM point to a steady medium-term growth outlook. While valuations remain premium, its digital-first model and capital strength justify a Buy view for long-term investors. Discover more expert insights at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
Related Queries
- What drives Poonawalla Fincorp’s strong AUM growth outlook?
- How does digital transformation benefit NBFCs in India?
- Is Poonawalla Fincorp still undervalued despite premium multiples?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
