Share of Poonawalla Fincorp Ltd is currently trading at around Rs.350/-Existing as well as Prospective Investors are asking for Poonawalla Fincorp Share Price Target 2025 as well as targets for 2030,2035 & 2040. In this article, we will discuss about the business prospects and financial performance of the Company and based on our discussion and analysis will tell you about the Poonawalla Fincorp Share Price Target 2025 as well as targets for 2030,2035 and 2040
Discussion & Analysis of Business & Financial performance with future business prospects of Poonawalla Fincorp Ltd:
Poonawalla Fincorp Ltd, a non-banking financial company (NBFC) specializing in consumer and MSME finance, has demonstrated remarkable growth and resilience in its recent financial performance.
Current Business Performance:
In the fourth quarter of the fiscal year 2024 (Q4 FY24), Poonawalla Fincorp achieved its highest-ever quarterly profit after tax (PAT) of ₹332 crore, marking an 84% year-on-year (YoY) increase and a 25% rise compared to the previous quarter. For the entire FY24, the company’s PAT reached ₹1,027 crore, up 83% YoY.
The company’s assets under management (AUM) stood at ₹25,003 crore as of March 2024, reflecting a 55% YoY growth and a 14% increase from the previous quarter. This expansion was driven by record disbursements of ₹9,688 crore during Q4 FY24, up 52% YoY and 11% quarter-on-quarter (QoQ).
Asset quality also improved, with the gross non-performing asset (NPA) ratio reducing by 28 basis points (bps) YoY to 1.16%, and the net NPA ratio decreasing by 19 bps YoY to 0.59%. The capital adequacy ratio remained robust at 33.8%, and the liquidity buffer was substantial at ₹3,932 crore.
Future Business Prospects:
Looking ahead, Poonawalla Fincorp has outlined a strategic roadmap focused on sustained growth and diversification:
- Product Portfolio Expansion: The company plans to broaden its offerings from four to ten products, introducing new services such as gold loans and education loans to enhance market competitiveness and cater to a wider customer base
- Geographical Reach: An ambitious expansion strategy includes opening 400 new branches in tier-two and tier-three cities over the next year, aiming to strengthen its presence in underpenetrated markets and tap into new customer segments.
- Technological Advancements: Investments in advanced analytics and artificial intelligence (AI) are planned to refine credit decision-making processes, improve risk management, and enhance customer engagement through personalized services.
- Leadership and Talent Acquisition: The company has successfully filled 95% of its envisioned leadership positions, reinforcing its management team to drive strategic initiatives effectively.
- These initiatives are supported by a strong financial foundation, with a low debt-to-equity ratio of 2.26 times and a capital adequacy ratio of 29.22%, providing ample headroom for leveraging growth opportunities. The company’s focus on maintaining a balanced mix between secured and unsecured loans, while addressing challenges in specific portfolios like the STPL book, underscores its commitment to prudent risk management.
In summary, Poonawalla Fincorp Ltd’s robust financial performance and strategic initiatives position it well for sustained growth and enhanced market presence in the NBFC sector.
Share Price Targets:
Poonawalla Fincorp Share Price Target 2025
Based on the above discussion and analysis, the share price of Poonawalla Fincorp Ltd is likely to touch the level of around Rs.400-425 in 2025
Poonawalla Fincorp Share Price Target 2030
Based on the above discussion and analysis, the share price of Poonawalla Fincorp Ltd is likely to touch the level of around Rs.700-800 in 2030
Poonawalla Fincorp Share Price Target 2035
Based on the above discussion and analysis, the share price of Poonawalla Fincorp Ltd is likely to touch the level of around Rs.1400-1500 in 2035
Poonawalla Fincorp Share Price Target 2040
Based on the above discussion and analysis, the share price of Poonawalla Fincorp Ltd is likely to touch the level of around Rs.2500-3000 in 2040
Disclaimer: Investments in Capital Market/Share Prices are subject to market fluctuations and are dependent on several factors. These predictions are based on the current market conditions and the future market expectations. Investors are advised to take into consideration all these factors before making any investment in Capital Market. This article should not be treated as Investment advisory and is for general Guidance & Educational purpose only. We keep revising our share price targets based on the latest information available with us. Please keep visiting our website regularly to keep yourself updated. MoneyInsight does not offer investment advice and does not encourage any action based on its content.
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