Buy Poonawalla Fincorp, target price Rs 350: Motilal Oswal Financial Services

Motilal Oswal Financial Services has buy call on Poonawalla Fincorp with a target price of Rs 350. The current market price of Poonawalla Fincorp is Rs 304.5.

Poonawalla Fincorp, incorporated in the year 1978, is a Small Cap company (having a market cap of Rs 23435.59 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 30-09-2022, the company has reported a Consolidated Total Income of Rs 654.89 Crore, up 14.56 % from last quarter Total Income of Rs 571.67 Crore and up 27.76 % from last year same quarter Total Income of Rs 512.58 Crore. Company has reported net profit after tax of Rs 163.12 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 31-12-2022, the company has a total of 77 Crore shares outstanding.

Investment Rationale
The company has strong moats on the liability front, supported by its strong parentage. At its current size (one-fifth to one-tenth of peers in similar segments), a huge opportunity beckons in its target product segments and with a healthy capital position the brokerage believes the company has a strong and long runway for growth ahead.