Multibagger stock that surged nearly 750% in 2 years can see another 38% upside from current levels | Details
Poonawalla Fincorp, a non-banking financial company (NBFC) is a multibagger stock that has risen by nearly 750% in the past two years.
Poonawalla Fincorp, a non-banking financial company (NBFC) is a multibagger stock that has risen by nearly 750% in the past two years. Poonawalla Fincorp share price one-year yield is also impressive at 77% return at the closing of Wednesday's trading session. On Wednesday, the stock ended marginally lower by half per cent to Rs 289.50 per share on the BSE.
Earlier, the sharp spike in share price of this NBFC stock came after Poonawalla group took a majority 62% stake in Poonawalla Fincorp, previously known as Magma Fincorp.
JM Financial, which initiated a coverage on the counter, was of the view that Poonawalla Fincorp has undergone a metamorphosis of sorts after significant capital infusion by the Poonawalla group.
The change of ownership has driven significant reduction in cost of borrowings (down 260bps over 15 months), enabled the company to refocus its customer and product segment (to credit-tested customers with select offerings) and invest significantly in technology and talent, said the brokerage
Poonawalla Fincorp share price target
JM Financial maintained a buy rating on Poonawalla Fincorp shares for a target price of Rs 400, an upside of 38% on today's closing price.
"The backing of a respected, longstanding, non-levered promoter group has enabled the company to reduce its cost of borrowings significantly and thus focus on the credit-tested, high quality customer base while also making strong long-term investments in technology, presence and talent.
JM Financial expects PFL to enter a strong acceleration phase of customer acquisition and offer digital-first products.
Asset quality is likely to remain strong given the focus on credit-tested customers, past experience of digital lending, and sharp focus on risk, it said.
Poonawalla Fincorp share price history
Poonawalla Fincorp share price traded on 52-week high value of Rs 343.75 in April this year and touched a year-low of Rs 141 in October last year. As on September 28, the stock is available at nearly 16% discount from its 52-week high.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Senior Citizen Latest FD Rates: Know what major banks like SBI, PNB, Canara Bank, HDFC Bank, ICICI Bank are providing on fixed deposits
Gratuity Calculator: Rs 38,000 as last-drawn basic salary, 5 years and 5 months of service; what will be gratuity amount?
EPFO Pension Schemes: Early pension, retirement pension, nominee pension and 4 other pension schemes that every private sector employee should know
Top 5 Small Cap Mutual Funds with best SIP returns in 1 year: See how Rs 25,000 monthly investment has grown in each scheme
Top 7 SBI Mutual Funds With Best SIP Returns in 1 Year: Rs 25,000 monthly SIP investment in No.1 fund has jumped to Rs 3,58,404
08:23 PM IST