Key facts
- Jefferies initiated coverage on Poonawalla Fincorp.
- Jefferies assigned a Buy rating to Poonawalla Fincorp.
- Jefferies set a target price of Rs 490 for Poonawalla Fincorp.
- Analysts expect strong growth potential driven by new leadership and expanded product range.
- Poonawalla Fincorp is projected to achieve the fastest AUM growth among major NBFCs.
- Profitability is expected to improve significantly.
Jefferies has initiated coverage on Poonawalla Fincorp, assigning it a 'Buy' rating and establishing a target price of Rs 490. The brokerage's bullish outlook is underpinned by the company's strong growth potential, which is attributed to a new leadership team and a broadened product portfolio. Jefferies anticipates that Poonawalla Fincorp will experience the most rapid Assets Under Management (AUM) growth compared to other major Non-Banking Financial Companies (NBFCs). Furthermore, the firm projects a substantial improvement in profitability, which is expected to justify premium valuations for the company's stock.