Poonawalla Fincorp Limited is a non-banking finance company (NBFC) that was founded in 1983. It is a subsidiary of the Cyrus Poonawalla Group and is primarily engaged in providing loans and other financial services to customers. The company’s services include personal loans, business loans, home loans, and loans against property. Poonawalla Fincorp is a publicly listed company, and its shares are traded on the stock exchanges.
In recent years, Poonawalla Fincorp has been one of the fastest-growing NBFCs in India. The company has reported strong financial results and has consistently outperformed its peers in terms of growth and profitability. In this article, we will take a closer look at Poonawalla Fincorp’s performance in the recent years and analyze its share price movement in the stock market.
Financial Performance
Poonawalla Fincorp’s financial performance has been impressive in the recent years. The company has reported strong growth in its loan book, which has helped to drive revenue and profits. In FY2021, the company’s loan book grew by 53% to reach Rs 9,919 crore, up from Rs 6,489 crore in the previous year. This growth was driven by a strong demand for personal and business loans, as well as loans against property.
The company’s revenue has also grown at a healthy pace in the recent years. In FY2021, Poonawalla Fincorp’s revenue grew by 60% to reach Rs 1,804 crore, up from Rs 1,124 crore in the previous year. The company’s net profit also grew substantially, from Rs 74 crore in FY2020 to Rs 324 crore in FY2021, an increase of over 338%.
Poonawalla Fincorp’s strong financial performance can be attributed to its focus on building a diversified loan portfolio and its prudent risk management practices. The company has been able to maintain a healthy asset quality, with its gross non-performing assets (GNPAs) remaining below 2% in the recent years.
Share Price Movement
Poonawalla Fincorp’s share price has also performed well in the stock market in the recent years. The company’s shares were listed on the stock exchanges in April 2021, and since then, its share price has risen by over 60%. The company’s share price has been volatile, with significant fluctuations in response to news and market developments.
On the day of its listing, Poonawalla Fincorp’s share price opened at Rs 252.40 and closed at Rs 281.20, up by over 11%. The share price continued to rise in the following weeks, reaching a high of Rs 596.05 on June 7, 2021. However, the share price declined sharply in the following days, falling to a low of Rs 184.70 on June 22, 2021.
Since then, the company’s share price has recovered somewhat, and as per stock market live updates, it was trading around Rs 280. The share price has been supported by the company’s strong financial performance and its promising growth prospects. However, it remains susceptible to market volatility and news developments, which can cause significant fluctuations in the short term.
Conclusion
Poonawalla Fincorp has emerged as one of the leading NBFCs in India in the recent years. The company has reported strong financial results and has consistently outperformed its peers in terms of growth and profitability. While the share price has been volatile, with significant fluctuations in response to news and market developments, it has generally trended upwards, supported by the company’s strong financial performance and growth prospects. Overall, Poonawalla Fincorp appears well-positioned for continued growth and success in the NBFC industry.