Poonawalla Fincorp Ltd witnessed a significant surge in its shares, reaching a one-year high, following the release of robust Q3FY24 financial results. The stock rose by 5.75 percent, hitting a 52-week high of Rs 519.95, with high trading volumes on the BSE.
During Friday’s trading, approximately 2.57 lakh shares changed hands, surpassing the two-week average volume of 2.06 lakh shares. The turnover on the counter amounted to Rs 13.16 crore, contributing to a market capitalization of Rs 38,813.70 crore.
The non-bank lender reported its highest-ever quarterly PAT of Rs 265.14 crore, marking a remarkable 76.3 percent YoY increase and a 15 percent sequential growth. Additionally, Poonawalla Fincorp achieved its highest-ever quarterly disbursement of Rs 8,731 crore, representing a 159 percent YoY increase and a 12 percent QoQ rise. The Assets Under Management (AUM) reached Rs 21,946 crore, reflecting a 58 percent YoY growth and a 9 percent QoQ increase.
Gross NPA came in at 1.33 percent, witnessing a 36 basis points (bps) YoY reduction and a 3 bps QoQ decline. Net NPA stood at 0.70 percent, showcasing a 19 bps YoY reduction and a 2 bps QoQ decline. Notably, the NBFC’s return on assets rose to 5.3 percent, registering an 84 bps YoY increase and a 34 bps QoQ growth during the reviewed quarter.
In a separate announcement, the company’s Board declared an interim dividend of Rs 2 per equity share for FY24. As of December 2023, promoters held a 62.07 percent stake in the shadow lender.
The positive financial performance and optimistic outlook for new product launches and technology deployment received favorable comments from market experts. Analyst Mayuresh Joshi from William O’Neil India suggested holding onto the stock, highlighting potential cost optimization and improved return ratios.
