Poonawalla Fincorp hits 52-week high, surges 44 percent in a month
Published On: Wednesday, April 13, 2022 | By: Team KnowMyStock
Shares of Poonawalla Fincorp (formerly known as Magma Fincorp) hit a 52-week high of Rs 343.75, after rallying 8 percent on the BSE in Wednesday’s intra-day trade on healthy earnings hopes. The multibagger stock has jumped about 44% in the last month whereas it has leaped more than 110% in six months period alone. Sharing its business update, Poonawalla Fincorp said it continued with its growth momentum during Q4FY22. Its assets under management (AUM) grew 17% year-on-year (YoY) to ₹16,575 crores at the end of the quarter ended March 31, 2022. The AUM growth was 9% quarter-on-quarter (QoQ). The assets under management for the housing finance subsidiary Poonawalla Housing Finance Limited crossed the ₹5,000 crore milestone, the company informed in an exchange filing last week. The rating factor enhanced financial flexibility post the significant capital infusion of Rs 3,456 crore in May 2021 resulting in healthy capitalization and low leverage.
"The company expects their portfolio to triple in around four years with RoAs moving toward 3.0-3.5 per cent on lower cost of borrowing, portfolio shift toward secured vs. unsecured portfolio of 65 per cent: 35 per cent, and tighter asset-quality control," analysts at Emkay Global Financial Services said.
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