Poonawalla Fincorp Limited, a non-deposit taking NBFC registered with RBI, has been making waves in the financial market. Headquartered in Pune and a proud member of the Cyrus Poonawalla Group, the company excels in providing consumer and MSME financing, along with General Insurance services. Investors have witnessed substantial returns, and as we explore the company’s prospects, the EMA crossover on the weekly chart emerges as a pivotal indicator, signaling potential gains on the horizon.
Weekly Chart Surge
Examining the weekly chart reveals an impressive uptrend, marked by higher highs and higher lows. In December 2020, the stock was trading at around 44 rupees per share. Fast forward to 2023, and the stock has soared to over 380 rupees per share, delivering a staggering 750 percent returns in just three years.
The technical prowess of the EMA crossover, specifically the 8-day crossing the 20-day moving average from below, signals a potential rally. This crucial insight, especially on the weekly timeframe suitable for mid to long-term investments, hints at compelling investment prospects if the price sustains.
Second Quarter Triumphs
Poonawalla Fincorp Ltd reported a remarkable net profit of ₹1,258.9 crore for the second quarter of FY 2023-24, concluding on September 30, 2023. This surge was bolstered by an exceptional gain of ₹1,221.2 crore during the same period. Compared to the previous year’s corresponding quarter, which posted a net profit of ₹163.1 crore, the growth is awe-inspiring. The net interest income (NII) witnessed an 18.7% jump, reaching ₹529.2 crore. Additionally, the company showcased commendable control over non-performing assets (NPAs), with both gross and net NPAs showing a decline quarter-on-quarter.
RBI Approval for Co-Branded Credit Card
Adding to its accolades, Poonawalla Fincorp Ltd secured approval from the Reserve Bank of India (RBI) to issue a co-branded credit card in collaboration with IndusInd Bank. This strategic move reflects the company’s commitment to enhancing its financial product offerings. Abhay Bhutada, Managing Director, expressed confidence in the partnership, deeming it a game-changer. The co-branded credit card aims to cater to India’s tech-savvy and financially astute customers, promising ethical lending practices, transparency, and a seamless digital experience.
Poonawalla Fincorp Ltd, fueled by key success factors, is on a remarkable path of expansion, offering an appealing investment opportunity. However, it is strongly advised that savvy investors conduct comprehensive research and align their investment decisions with their specific financial goals for informed and prudent choices.
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