Shares of Poonawalla Fincorp jumped 6.43% higher on Thursday’s early trades after the company reported robust results for the January to March quarter of 2023 (Q4FY23). Its shares reached an intraday high of ₹ 327.70 apiece on the National Stock Exchange (NSE) and were trading at ₹ 321.45 apiece at 12:16 PM.
Poonawalla Fincorp is a non-deposit-taking systemically important NBFC, focusing on consumer and MSME finance. In May 2021, the company raised capital of ₹ 3,456 crores and became a part of the Cyrus Poonawalla Group with a majority stake owned by Rising Sun Holdings Private Limited, a company owned and controlled by Adar Poonawalla.
Result
The company reported its highest-ever profit after tax (PAT) at ₹ 181 crores for Q4FY23, up 103% as compared to the corresponding quarter last year and up 20% sequentially. It reported its highest-ever quarterly disbursements at ₹ 6371 crores, up 151% year on year (YoY) and up 89% quarter on quarter (QoQ). Its Assets Under Management (AUM) were at ₹ 16,143 crores, up 37% YoY and 16% QoQ.
Poonawalla Fincorp reported Net NPA (non-performing assets) at 0.78%, reduced 52 bps YoY and 11 bps QoQ. It reported the highest-ever return on assets at 5%, up 178 bps YoY.
Dividend
The NBFC’s board has recommended a dividend of ₹ 2 per share for FY23, subject to shareholder approval.
Financials
Poonawalla Fincorp has a market capitalization of 23,645 crores and is a mid-cap company. It has a return on equity of 9.09% and a dividend yield of 0.13%. Its shares were trading at a price-to-earnings ratio of 39.68 which is higher than the industry P/E of 19.61, indicating that the stock might be overvalued as compared to its peers.
Shareholding
The company’s promoters hold a 62.14% stake in it followed by retail investors with 24.66%, foreign institutions with 7.13%, mutual funds with 4.52% and others with 1.55%.
Written by Simran Bafna
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