Buy Spandana Sphoorty, target price Rs 550: ICICI Securities

ICICI Securities has buy call on Spandana Sphoorty Financial with a target price of Rs 550. The current market price of Spandana Sphoorty Financial is Rs 422.8.

Time period given by analyst is one year when Spandana Sphoorty Financial Ltd. price can reach defined target.
Spandana Sphoorty Financial Ltd., incorporated in the year 2003, is a Mid Cap company (having a market cap of Rs 2917.52 Crore) operating in NBFC sector.


Spandana Sphoorty Financial Ltd. key Products/Revenue Segments include Interest, Income From Sale Of Share & Securities, Bad Debts Recovery and Commission for the year ending 31-Mar-2021.


Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 299.07 Crore, down -14.52 % from last quarter Total Income of Rs 349.87 Crore and down -37.73 % from last year same quarter Total Income of Rs 480.29 Crore. Company reported net profit after tax of Rs 28.60 Crore in latest quarter.

Investment Rationale
Considering the management and the operational stability, improving visibility on earnings recovery led by credit cost normalisation and favourable risk-reward (trading at 0.7x FY24e P/BV), the brokerage upgrades the stock to BUY from ADD earlier with a revised TP of Rs550 (earlier: Rs450). It rolls over estimates to Sep-23 and assign P/BV multiple of 1x.


Promoter/FII Holdings
Promoters held 62.62 per cent stake in the company as of 31-Mar-2022, while FIIs owned 12.19 per cent, DIIs 4.22 per cent.