Home / Markets / Stock Markets /  Multibagger NBFC stock rises 2.30% on 21% YoY growth of AUM in Q2FY23

Poonawalla Fincorp Ltd is an NBFC-focused mid-size company with a market worth of 24,640.58 crore. Poonawalla Fincorp Limited works to meet the financial requirements of both businesses and individuals. Poonawalla Fincorp Ltd. shares on the NSE closed today at 323.10 a piece, up 2.30% from the previous close of 315.85. Today's trading had a total volume of 6,174,863 shares vs the 20-Day average volume of 5,471,262 shares for the stock. Following the company's announcement of a 21% YoY jump in consolidated AUM, the stock price began to rise and touched an intraday high of 329 (4.18%), despite climbing 9.90% over the preceding five trading days.

On a consolidated, the company's total disbursement for Q2FY23 was about 3,720 crores, up 44% YoY and 8% QoQ, with organic disbursement accounting for nearly ~97% of the total, up from 80% in Q1FY23. Total disbursement in Q2FY23 was wholly organic, rising ~31% QoQ to over 3,110 crores on a standalone basis from organic disbursement in Q1FY23 of 2,379 crores. On a standalone basis, the company's total disbursement stood at 2,901 crores in Q1FY23.

As of September 30, 2022, consolidated AUM climbed by 21% YoY and 5% QoQ to over 18,550 crores, notwithstanding a significant decline in the discontinued loan book which stood at approximately 1,300 crore as on 30th September 2022. As of September 30, 2022, Poonawalla Housing Finance Limited (PHFL), a subsidiary of the company, has an AUM of around 5,600 crores.

“The aligned GNPA and NNPA on a consolidated basis are expected to be below 1.6% and 0.9% respectively as of 30th September 2022. The company would strive to maintain the NNPA below 1% in line with its Management Vision 2025," said Poonawalla Fincorp in an official statement.

As of September 30, 2022, the company reportedly had about 4,730 crores in liquid assets. Whereas Care Ratings Limited raised the company's and its subsidiary, PHFL's, long-term rating to "CARE AAA (Triple A), Stable." This grade is valid for subordinated debt, non-convertible debentures, market-linked debentures, and bank loan services.

“We continued strong growth momentum during Q2FY23 supported by significant improvement in organic disbursement across all products, with share of Direct, Digital and Partnerships (DDP) rising to ~47% in Q2FY23 compared to 34% in Q1FY23. We achieved our highest ever quarterly and monthly disbursement during Q2FY23 and September’2022 respectively. September’2022 monthly organic run rate of approximately 1290 crores creates a strong growth trajectory for H2FY23. Rating upgrade by Care Ratings to the highest rating ‘CARE AAA; Stable’ is indicative of the company’s strong parentage, proficient management team, robust fundamentals, and growth potential; which shall further strengthen our liability franchise and support the growth journey," the management has stated.

In the last 5 years, the shares of Poonawalla Fincorp Ltd have gained 81.11% but in the last 3 years, the stock has delivered a multibagger return of 544.74%. In the last 1 year, the stock has gained 92.84% and on a YTD basis, the stock has gained 46.36% so far in 2022. On the NSE, the stock had touched a 52-week-high of 343.80 on (13-April-2022) and a 52-week-low of 140.75 on (25-October-2021), indicating that at the current price level the stock is trading 6.02% below the high and 129.55% above the low.


Vipul Das

Vipul Das is a Digital Business Content Producer at Livemint. He previously worked for Goodreturns.in (OneIndia News) and has over 5 years of expertise in the finance and business sector. Stocks, mutual funds, personal finance, tax, and banking are among his specialties, and he is a professional in industry research and business reporting. He received his bachelor's degree from Dr. CV Raman University and also have completed Diploma in Journalism and Mass Communication (DJMC).
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