Buy Poonawalla Fincorp, target price Rs 332: Nuvama Wealth

Nuvama Wealth brokerage has buy call on Poonawalla Fincorp with a target price of Rs 332. The current market price of Poonawalla Fincorp is Rs 312.9. Nuvama Wealth brokerage recommended to keep stop loss at Rs 299.

Poonawalla Fincorp, incorporated in the year 1978, is a Small Cap company (having a market cap of Rs 23821.73 Crore) operating in NBFC sector.

Poonawalla Fincorp key Products/Revenue Segments include Interest, Fees & Commission Income, Rental Income, Income From Sale Of Share & Securities for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 716.23 Crore, up 9.37 % from last quarter Total Income of Rs 654.89 Crore and up 38.86 % from last year same quarter Total Income of Rs 515.80 Crore. Company has reported net profit after tax of Rs 182.44 Crore in latest quarter.

The company’s top management includes Mr.Adar Cyrus Poonawalla, Mr.Sanjay Kumar, Mrs.Vijayalakshmi Iyer, Mr.Prabhakar Dalal, Mr.Bontha Prasada Rao, Mr.Atul Kumar Gupta, Mr.Amar Deshpande, Mr.Sajid Fazalbhoy, Mr.Abhay Bhutada, Mr.G Jaganmohan Rao. Company has Walker Chandiok & Co. LLP as its auditors. As on 31-03-2023, the company has a total of 77 Crore shares outstanding.

Investment Rationale
Bullish swing breakout and above trendline from recent swing highs indicates a bullish momentum.

Promoter/FII Holdings
Promoters held 62.14 per cent stake in the company as of 31-Mar-2023, while FIIs owned 7.13 per cent, DIIs 6.09 per cent.