This NBFC stock rose 1,600% in three years; fell after three days in last session

Shares of Poonawalla Fincorp Ltd have rallied 1,617% in the last three years. The large cap stock, which closed at Rs 16.95 on April 3, 2020 closed at Rs 291 on the BSE on April 3, 2023. An amount of Rs 1 lakh invested in the shares of Poonawalla Fincorp three years ago would have turned into Rs 17.16 lakh today. In comparison, Sensex has risen 114 per cent during the period.

However, the stock closed 0.50% lower at Rs 291.05 on BSE in the previous session. It has fallen after three days of gain. The stock opened marginally lower at Rs 294 against the previous close of Rs 292.50 on BSE. Total 0.82 lakh shares of the firm changed hands amounting to a turnover of Rs 2.39 crore on BSE. Market cap of the firm stood at Rs 22,351 crore on BSE.

The stock has risen 4% in one year and lost 5.56% since the beginning of this year.

In terms of technicals, the relative strength index (RSI) of the stock stands at 52.1, signaling it's trading neither in overbought nor in the oversold zone. Poonawalla Fincorp shares have a beta of 1.5, indicating high volatility in a year. Poonawalla Fincorp shares are trading higher than the 5 day, 20 day and 200 day moving averages but lower than 50 day and 100 day moving averages.

One promoter held 62.05 per cent stake in the firm and 2,10,851 public shareholders owned 37.95 per cent for the quarter ended December 2022. Of these, 201333 public shareholders held 8.67 crore shares or 11.33% stake with capital up to Rs 2 lakh. Only 87 shareholders with 7.14 % stake held capital above Rs 2 lakh for the quarter ended December 2022.

Ten mutual funds held 3.02 crore or 3.95% in Q3 of the last fiscal.

Poonawalla Fincorp has outperformed its peers in terms of stock market returns in three years. Shares of M&M Financial Services have risen 66.47% and stock of Sundaram Finance has gained 103% in three years. Stock of another competitor Max Financial has risen 89.29% during the period.

Financial Performance

The stellar rally in the Poonawalla Fincorp stock reflects the financial performance of the firm in the last three years. In the December quarter, the firm reported a 89.12% rise in net profit to Rs 182.44 crore against Rs 96.47 crore in the corresponding quarter of previous fiscal.

Sales rose 37.37% to Rs 697.77 crore in the December 2022 quarter against Rs 507.96 crore in the December quarter of 2021.

Operating profit rose 47.30% to Rs 477.27 crore for the quarter ended December against Rs 324.01 crore in the corresponding quarter of the previous fiscal.

On a quarter-on-quarter basis, the firm reported a 11.84% rise in net profit from Rs 163.12 crore in the September 2022 quarter. Sales climbed 11.24% from Rs 627.27 crore in Q2 of the current fiscal.

On an annual basis, profit zoomed to Rs 375.41 crore for the fiscal ended March 2022 against Rs 558 crore loss for the fiscal ended March 2021. For the fiscal ended 2020, net profit stood at Rs 28.06 crore.

However, sales fell 13.56% to Rs 2004 crore in the last fiscal against Rs 2318 crore for the fiscal ended March 2021. For the fiscal ended 2020, sales stood at Rs 2513 crore.

About the Company

Poonawalla Fincorp is a non-banking finance company engaged primarily in the business of financing. It provides asset finance through its pan India branch network. The company's business focuses on the necessities of people and enables them to earn their livelihood through financial products offered by it to the micro, small and medium enterprise (MSMEs), such as truck/taxi drivers who owns and operates commercial vehicles, construction equipment and passenger vehicles, among others to marginal farmers, small shopkeepers and other MSMEs.

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