Deven Choksey Upgrades Poonawalla Fincorp to 'HOLD' on Strong Q3 AUM Growth, Sets ₹463 Target

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AuthorKavya Nair|Published at:
Deven Choksey Upgrades Poonawalla Fincorp to 'HOLD' on Strong Q3 AUM Growth, Sets ₹463 Target
Overview

Analyst Deven Choksey has upgraded Poonawalla Fincorp to a 'HOLD' rating with a price target of ₹463, citing strong operational performance. The company reported substantial Q3 FY26 results, with Assets Under Management (AUM) growing 77.6% year-on-year to ₹55,017 crore. Profit After Tax (PAT) surged 702.03% year-on-year to ₹150.22 crore.

Poonawalla Fincorp Sees Analyst Upgrade Following Robust Q3 Performance

Deven Choksey has revised his rating on Poonawalla Fincorp, moving from 'REDUCE' to 'HOLD'. This recalibration comes with a price objective of ₹463 per share, based on a valuation multiple of 3.1 times the estimated Assets Per Book Value Per Share (ABVPS) for FY28. The upgrade reflects increasing confidence in the company's consistent operational achievements and effective execution strategies.

Significant Q3 FY26 Financial Highlights

Poonawalla Fincorp announced its financial results for the third quarter of fiscal year 2026, showcasing considerable expansion in its financial operations. The company's Assets Under Management (AUM) reached ₹55,017 crore as of December 31, 2025, marking an impressive year-on-year increase of 77.6% and a quarter-on-quarter growth of 15.3%. This expansion was driven by strong performance across both secured and unsecured lending segments, with the on-book portfolio comprising 56% secured and 44% unsecured assets [cite: Provided Text].

Further bolstering its financial profile, Poonawalla Fincorp reported a Profit After Tax (PAT) of ₹150.22 crore for Q3 FY26, a remarkable 702.03% surge compared to the same period last year. The company's revenue also saw a significant jump, growing by 72.03% year-on-year to ₹1,818.42 crore.

Operational Strengths and Market Context

The company maintained a healthy liquidity position, with ₹6,450 crore on hand as of December 31, 2025. Asset quality also showed improvement, with Gross Stage 3 assets (GNPA) declining to 1.51%.

As of January 21, 2026, Poonawalla Fincorp was trading around ₹448.00, below the new target price. The company's market capitalization stood at approximately ₹36,377 crore as of January 19, 2026, with a trailing twelve-month Price-to-Earnings (P/E) ratio of around 102.26. This valuation reflects investor expectations for continued growth within the non-banking financial company (NBFC) sector, which is experiencing broad credit demand and expansionary trends.

Valuation Basis

The price target of ₹463 is anchored to a valuation multiple of 3.1x the projected FY28E ABVPS, indicating the analyst's expectation of future book value growth and profitability. The upgrade signifies a positive outlook on the company's ability to leverage its growth trajectory and market position.

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