Jefferies believes Poonawalla Fincorp is well-positioned to benefit from its revamped leadership team, expanding product portfolio, growing distribution network, and strengthened underwriting practices.
The brokerage expects the company to deliver assets under management (AUM) growth at a CAGR of 33% over the coming years, which would be the fastest among major non-banking financial companies (NBFCs).It also sees net interest margins (NIMs) improving due to a favourable shift in the loan mix, while lower slippages and a better portfolio mix are expected to drive a decline in credit costs.
As a result, Jefferies expects a sharp improvement in profitability, with return on assets (ROA) and return on equity (ROE) projected to expand to 16% by FY29 from around 6% in FY26. The brokerage believes this earnings trajectory should support the stock’s premium valuation.
According to analyst consensus data, 10 analysts currently track the stock. Of these, five have a ‘Buy’ rating, one recommends ‘Hold’, while four maintain a ‘Sell’ call.
Shares of Poonawalla Fincorp ended Wednesday’s session 0.3% higher at ₹399. The stock has declined nearly 18% so far in 2026.
