Buy IIFL Wealth Management, target price Rs 2494: Anand Rathi

Anand Rathi has buy call on IIFL Wealth Management with a target price of Rs 2494. The current market price of IIFL Wealth Management is Rs 1659.5. Time period given by analyst is one year when IIFL Wealth Management Ltd. price can reach defined target.

IIFL Wealth Management Ltd., incorporated in the year 2008, is a Mid Cap company (having a market cap of Rs 14682.36 Crore) operating in NBFC sector.

IIFL Wealth Management Ltd. key Products/Revenue Segments include Fees & Commission Income for the year ending 31-Mar-2021.



Financials
For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 570.62 Crore, up 13.45 % from last quarter Total Income of Rs 502.98 Crore and up 22.54 % from last year same quarter Total Income of Rs 465.68 Crore. Company reported net profit after tax of Rs 152.94 Crore in latest quarter.


Investment Rationale
The stock trades at 18x FY24e EPS. It values the stock at 27x FY24e EPS to arrive at a target price of Rs2,494 (Rs2,055 earlier), implying 52% potential from Rs1,641 currently. Risks: Volatile capital markets, less-than-expected AUM growth, higher attrition rate of TLs, regulatory issues.

Promoter/FII Holdings
Promoters held 23.15 per cent stake in the company as of 31-Dec-2021, while FIIs owned 22.69 per cent, DIIs 3.15 per cent.