Poonawalla Fincorp share price target: Poonawalla FIncorp share price pared its gains in the second half of Monday’s trading session as the initial euphoria over the company’s Q2 results faded. The Non Banking and Financial Services (NBFC) stock rallied nearly 8% earlier in the day.
As Poonawalla Fincorp retreated from its intraday high level, brokerages gave split verdict on the NBFC stock, with Emkay Global Financial Services seeing 8% downside risk. Whereas, Motilal Oswal Financial Services Limited (MOFSL) sees 27% upside potential.
Motilal Oswal gave a ‘Buy’ rating for the stock with a target price of ₹570 per share. “We model ~44% AUM CAGR and ~120% PAT CAGR over FY26-FY28E and expect PFL to deliver RoA/RoE of 2.4%/~17% in FY28E. Reiterate our BUY rating with a TP of INR570 (based on 2.7x Sep’28E BVPS),” stated the brokerage in its report.
Emkay maintained its ‘reduce’ rating with a target price of ₹410 per share. “Factoring in 2Q performance, we tweak our FY27-29 estimates marginally; this leads to EPS estimates increasing by 1-2% over FY27-29 (Exhibit 2). We retain REDUCE and maintain Sep-27E TP of Rs410, implying 1.8x FY28E PBV, assuming an equity raise of Rs30bn in FY28E at Rs450/sh,” stated the brokerage in its report.
Motilal Oswal underlined NIM expansion and lower credit costs of the company. Its profit after tax (PAT) and net interest income (NII) remained in-line with estimates.