Poonawalla Fincorp Ltd logo

Poonawalla Fincorp Ltd

POONAWALLA NSE

Poonawalla Fincorp Limited (erstwhile Magma Fincorp Limited) is a non-deposit taking NBFC registered with RBI. It is engaged in providing consumer and MSME financing, as well as General Insurance services. [1][2]

AI Verdict: HOLD Confidence: 4%

Poonawalla Fincorp delivers exceptional 62% TTM revenue growth and 618% TTM profit growth, but trades at an expensive 65.8x PE with a low 3-year ROE of just 6%. The valuation leaves little margin of safety despite the strong growth trajectory.

Key Fundamentals

MidcapNBFCFinancial Services
Market Cap
₹38,128 Cr
Volatility
Moderate
P/E Ratio
65.81
EBITDA
₹3,579 Cr
Return on Equity
20.22%
Debt to Equity
2.53
Book Value
₹146.11
EPS
₹15.74
52W High
₹570.4
52W Low
₹361.2

Technical Indicators

Key Insights

Strengths

1
  • Company is expected to give good quarter

Weaknesses

6
  • Stock is trading at 3.36 times its book value
  • Company has low interest coverage ratio.
  • Promoter holding has decreased over last quarter: -4.92%
  • Company has a low return on equity of 5.94% over last 3 years.
  • Company might be capitalizing the interest cost
  • Dividend payout has been low at 3.05% of profits over last 3 years

Growth Rate

Revenue Growth
60.80% ↗
Net Income Growth
-777.80% ↘
Cash Flow Change
-39.87% ↘
ROE
-105.93% ↘
ROCE
-67.87% ↘
EBITDA Margin (Avg.)
53.96% ↗

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
HOLD
Risk high

Poonawalla Fincorp delivers exceptional 62% TTM revenue growth and 618% TTM profit growth, but trades at an expensive 65.8x PE with a low 3-year ROE of just 6%. The valuation leaves little margin of safety despite the strong growth trajectory.

Bull Case 8
  • TTM revenue growth of 62% is outstanding for an NBFC, indicating rapid loan book expansion and market share gains
  • TTM profit growth of 618% demonstrates massive operating leverage as the company scales its lending operations
  • 3-year compounded sales CAGR of 46% shows sustained top-line momentum, not a one-quarter aberration
  • 5-year stock CAGR of 22% reflects consistent long-term wealth creation for shareholders
  • Market cap of Rs 36,830 Cr provides adequate scale and liquidity for institutional investors
  • Analyst consensus shows 50% Buy ratings (5 out of 10 analysts), indicating majority positive sentiment
  • Company is expected to deliver a good upcoming quarter per consensus estimates, suggesting near-term earnings momentum
  • 5-year compounded profit growth of 24% demonstrates the business model is structurally profitable over longer periods
Bear Case 8
  • PE ratio of 65.8x is extremely elevated for a financial services company, pricing in years of perfect execution
  • 3-year ROE of just 6% is well below the 15%+ threshold expected for quality NBFCs, indicating poor capital efficiency
  • Promoter holding decreased by 4.92% in the last quarter, signaling potential lack of insider confidence
  • Stock trades at 3.35x book value despite delivering only 5.94% ROE — a significant valuation-return mismatch
  • 40% of analysts (4 out of 10) have a Sell rating, reflecting meaningful institutional skepticism
  • Dividend payout of only 3.05% of profits over 3 years with 0.49% yield offers negligible income return
  • Low interest coverage ratio suggests the company may face stress if interest rates remain elevated
  • Possible capitalization of interest costs raises earnings quality concerns and may flatter reported profitability

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 14h ago
Headwinds 5
  • Stock down 18% in 2026 Jun 5

    Poonawalla Fincorp shares have declined nearly 18% year-to-date in 2026, with the stock falling 0.60% to ₹396.90 on Jun 5 and 1.8% in the prior session.

  • Structural NBFC funding cost disadvantage Jun 4

    Without a banking license, Poonawalla faces a 50-150 bps funding cost disadvantage versus banks, limiting NIM expansion potential despite product mix improvements.

  • RBI tighter risk weights pressure Jun 4

    RBI's increased risk weights on unsecured consumer lending raise capital requirements, while intense competition from Bajaj Finance, HDFC Bank, Kotak, and fintechs targets the same digital personal loan borrowers.

  • Legacy book cleanup costs Jun 4

    The STPL legacy portfolio cleanup imposed ₹1,339 crore in credit costs in FY25 and caused a 250 bps NIM contraction over two years, with the book run down from 21% to ~2% of AUM.

  • Mixed analyst consensus Jun 5

    Of 10 analysts tracking the stock, only 5 have Buy ratings while 4 maintain Sell calls and 1 recommends Hold, reflecting market skepticism on execution.

Positives 7
  • Jefferies Buy with ₹490 target Jun 5

    Jefferies initiated coverage with a Buy rating and ₹490 price target implying 23% upside, projecting 33% AUM CAGR over FY26-29E — the fastest among major NBFCs.

  • PAT surge to ₹2,900 crore by FY29 Jun 5

    Jefferies projects PAT growing from ₹540 crore in FY26 to ₹2,900 crore by FY29, with ROA/ROE improving from 1.1%/6% to 2.3%/16% over the same period.

  • NIM recovery ahead of guidance Jun 4

    NIMs expanded 43 bps sequentially to 9.05% in Q4 FY26, hitting the 9% target three quarters early, with disbursement yields up 40 bps to 15.96%.

  • Asset quality improving sharply Jun 4

    Gross NPAs declined from 1.8% to 1.4% in FY25, with post-Sep 2024 loan cohorts showing 50% lower delinquency; Stage 1 assets now at 97.5% of portfolio.

  • Six new products at 14% of AUM Jun 4

    Six new segments including gold loans, CV loans, and education loans scaled to 14% of AUM within one year, with individual ROA targets of 3-4.5% and gold loans showing zero 30 DPD accounts.

  • ₹2,500 crore QIP strengthens capital Jun 5

    April 2026 capital raise of ₹2,500 crore elevated Tier-1 capital above 19.5%, providing ample room to fund the targeted 33% AUM growth trajectory.

  • HDFC Bank leadership overhaul Jun 4

    Seven of nine CXOs now from HDFC Bank under CEO Arvind Kapil, deploying 50+ AI/ML models across the credit lifecycle and delivering 42 of 76 AI projects.

Neutral 3
  • Investor meet on June 30 Jun 19

    Poonawalla Fincorp will hold a virtual analyst meet on June 30, 2026 for the Goldman Sachs Asia Financials Corporate Day 2026.

  • US investor roadshow Jun 8-12 May 26

    Company scheduled analyst and institutional investor meetings in the USA from June 8-12, 2026, including Jefferies India Access Day.

  • NCD redemptions in June-July May 26

    Two NCD redemptions scheduled: partly paid-up NCDs on June 26, 2026 (record date June 11) and 12.10% NCDs worth ₹1.70 crore on July 3, 2026 (record date June 18).

TL;DR: Poonawalla Fincorp is undergoing an aggressive transformation under HDFC Bank-origin leadership, with Jefferies projecting industry-leading 33% AUM CAGR and PAT surging from ₹540 crore to ₹2,900 crore by FY29. Asset quality and NIMs are already inflecting positively, with NPAs down to 1.4% and NIMs recovering to 9.05%. Key risks include the stock's 18% YTD decline reflecting market skepticism, structural funding cost disadvantages versus banks, and intense competition in digital lending. The trend is improving operationally, but execution on the ambitious growth targets needs to be demonstrated quarter by quarter to narrow the gap between analyst optimism and market pricing.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Revenue
577
693
739
763
915
978
989
1,057
1,166
1,314
1,542
1,818
2,115
Expenses
152
194
207
178
241
272
1,260
632
615
662
784
855
910
Financing Profit
251
269
316
361
393
386
-622
40
93
105
121
224
362
Fin. Margin %
44%
39%
43%
47%
43%
39%
-63%
4%
8%
8%
8%
12%
17%
Other Income
23
40
829
11
7
18
8
0
7
0
0
0
5
Interest
173
230
216
224
281
320
352
385
458
546
638
739
844
Depreciation
19
15
15
15
14
15
16
15
20
22
22
24
26
PBT
254
293
1,130
357
385
390
-630
25
80
83
99
200
341
Tax %
22%
23%
24%
26%
14%
25%
-25%
26%
22%
25%
25%
25%
25%
Net Profit
199
226
860
265
332
292
-471
19
62
63
74
150
255
EPS in Rs
2.58
2.94
11.19
3.45
4.28
3.76
-6.06
0.24
0.8
0.8
0.91
1.85
3.13
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Revenue
2,534
2,656
2,524
2,290
2,457
2,513
2,319
2,004
2,177
5,418
4,190
6,790
Expenses
1,068
1,147
1,341
872
880
1,112
1,950
780
838
880
2,778
3,211
Financing Profit
233
318
52
301
454
107
-731
509
744
3,588
-103
812
Fin. Margin %
9%
12%
2%
13%
18%
4%
-32%
25%
34%
66%
-2%
12%
Other Income
25
28
43
39
38
49
39
38
184
-1,363
33
5
Interest
1,233
1,192
1,131
1,117
1,122
1,294
1,100
716
595
950
1,515
2,767
Depreciation
35
39
48
49
50
75
56
55
61
59
65
94
PBT
223
306
47
291
442
82
-749
492
866
2,166
-135
724
Tax %
16%
30%
73%
19%
31%
67%
-25%
24%
21%
22%
-27%
25%
Net Profit
187
213
13
237
304
27
-559
375
685
1,683
-98
542
EPS in Rs
9.49
8.93
0.86
9.99
11.29
1
-20.73
4.9
8.91
21.73
-1.26
6.67
Div. Payout %
8%
9%
93%
8%
7%
0%
0%
8%
22%
9%
0%
0%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
38
47
47
47
54
54
54
153
154
154
155
162
Reserves
1,617
2,104
2,125
1,925
2,690
2,694
2,140
5,903
6,708
8,013
8,020
10,187
Borrowing
11,756
11,859
10,075
12,127
13,133
12,047
10,475
9,973
11,209
15,216
26,081
48,436
Other Liabilities
1,472
1,515
1,375
796
912
445
543
413
5,150
704
774
1,488
Total Liabilities
14,882
15,525
13,622
14,894
16,789
15,240
13,212
16,443
23,221
24,087
35,030
60,272
Fixed Assets
212
265
278
207
199
242
196
214
222
194
244
427
CWIP
9
13
8
1
4
7
0
0
5
0
10
0
Investments
414
400
546
140
141
151
177
0
510
878
1,342
2,490
Other Assets
14,248
14,846
12,790
14,546
16,445
14,841
12,839
16,228
22,484
23,014
33,434
57,354
Total Assets
14,882
15,525
13,622
14,894
16,789
15,240
13,212
16,443
23,221
24,087
35,030
60,272
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
-305
733
2,949
390
-923
998
1,644
-3,049
-5,064
-7,556
-10,569
-21,786
Investing
-36
-254
-186
-36
-98
-281
81
143
-283
2,725
-482
-1,340
Financing
171
-498
-2,844
-387
1,490
-1,083
-1,574
2,903
5,748
4,331
10,821
23,387
Net Cash Flow
-169
-20
-81
-33
469
-365
152
-3
401
-501
-231
261
Free Cash Flow
-305
733
2,949
371
-969
949
1,633
-3,088
-5,132
-7,548
-10,597
-21,874
CFO/OP
-21
49
249
35
-56
71
447
-245
-374
-152
-749
-607
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
ROE %
11%
11%
1%
11%
13%
1%
-23%
9%
8%
14%
-1%
6%

Shareholding Pattern

As of Apr 2026
Promoters 59.03%
DIIs 16.67%
FIIs 11.26%
Public 8.91%
Others 4.12%
Total 99.99%
  Mar 2021May 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Apr 2026
Promoters
24.39%
73.29%
73.20%
72.52%
68.25%
61.50%
61.49%
61.48%
62.05%
62.14%
62.12%
62.10%
62.07%
62.13%
62.09%
61.87%
62.36%
62.53%
62.46%
63.96%
63.95%
63.93%
59.03%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
7.91%
0.00%
7.77%
7.85%
7.72%
8.19%
9.98%
10.76%
10.56%
10.61%
10.21%
11.26%
DIIs
12.38%
6.44%
6.26%
6.34%
6.50%
6.21%
5.68%
5.09%
4.48%
6.14%
7.92%
6.97%
5.47%
5.83%
6.79%
10.61%
11.81%
11.12%
12.27%
12.28%
12.23%
12.13%
16.67%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
14.83%
5.56%
7.26%
8.53%
13.10%
18.42%
18.42%
18.78%
18.48%
17.42%
15.19%
15.68%
17.60%
17.41%
17.37%
15.02%
13.42%
12.11%
10.64%
9.41%
9.53%
9.64%
8.91%
Others
48.40%
14.70%
13.28%
12.60%
12.16%
13.87%
14.41%
14.64%
14.99%
14.31%
14.77%
7.34%
14.86%
6.87%
5.90%
4.77%
4.22%
4.26%
3.88%
3.78%
3.68%
4.10%
4.12%
No. of Shareholders
40,160
38,413
49,030
66,317
1,19,034
1,64,805
1,93,021
1,92,283
2,10,852
2,08,419
1,85,803
2,02,705
1,95,334
2,03,244
2,32,421
2,65,650
2,60,656
2,48,870
2,09,209
1,96,598
1,91,508
1,86,863
1,87,448

Documents

1
Concall - Jan 2019 Jan 2019
2
Concall - Aug 2019 Aug 2019
3
Concall - Aug 2019 Aug 2019
4
Concall - Aug 2019 Aug 2019
5
Concall - Feb 2020 Feb 2020

Frequently Asked Questions about Poonawalla Fincorp Ltd

What does Poonawalla Fincorp Ltd do?
Poonawalla Fincorp Limited (erstwhile Magma Fincorp Limited) is a non-deposit taking NBFC registered with RBI. It is engaged in providing consumer and MSME financing, as well as General Insurance services. [1][2]
Where is Poonawalla Fincorp Ltd (POONAWALLA) listed?
Poonawalla Fincorp Ltd is listed on the Indian stock exchanges. It is listed on NSE: POONAWALLA and BSE: 524000. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Poonawalla Fincorp Ltd belong to?
Poonawalla Fincorp Ltd operates in the Financial Services sector within the Finance industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Poonawalla Fincorp Ltd?
Poonawalla Fincorp Ltd has a market capitalisation of approximately ₹38127.97 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of Poonawalla Fincorp Ltd?
The Price-to-Earnings (PE) ratio of Poonawalla Fincorp Ltd is 65.81. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Poonawalla Fincorp Ltd?
Over the past 52 weeks, Poonawalla Fincorp Ltd has traded between a low of ₹361.2 and a high of ₹570.4. This range helps investors understand the stock's price volatility and recent trading levels.
Does Poonawalla Fincorp Ltd pay dividends?
Yes, Poonawalla Fincorp Ltd has a dividend yield of 0.47%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Poonawalla Fincorp Ltd?
Poonawalla Fincorp Ltd has a Return on Equity (ROE) of 20.22%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Poonawalla Fincorp Ltd on Tapetide?
On Tapetide, you can view Poonawalla Fincorp Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Poonawalla Fincorp Limited (erstwhile Magma Fincorp Limited) is a non-deposit taking NBFC registered with RBI. It is engaged in providing consumer and MSME financing, as well as General Insurance services. [1][2]

Website poonawallafincorp.com
CEO Mr. Arvind Kapil
Employees 3,594
Listed 2004-04-27
Face Value ₹ 2
Issued Size 81,26,29,109

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