Strong AUM growth despite elections; earnings in line

Company
29 Jul 2024
5 Min read 
  • Abhijit Tibrewal Estimate change TP change Rating change Bloomberg SHFL IN Equity Shares (m) 376 M.Cap.(INRb)/(USDb) 1099.6 / 13.1 52-Week Range (INR) 3059 / 1759 1, 6, 12 Rel. Per (%) -6/10/35 12M Avg Val (INR M) 3339 
  •  Financials & Valuations (INR b) Y/E March FY24 FY25E FY26E Total Income 202 239 289 PPOP 142 170 212 PAT 71.9 85.1 104.9 EPS (INR) 191 226 279 
  •  Valuations NIM on AUM (%) 9.2 9.1 9.3 C/I ratio (%) 29.7 29.0 26.8 RoAA (%) 3.3 3.3 3.3 RoE (%) 15.7 16.4 17.6 Div. Payout (%) 23.5 22.3 21.8 
  •  AUM up 21% YoY; Non-CV products continue to grow faster than CV 
  •  Asset quality improved; continues to build higher PCR on standard loans 
  •  Reiterate BUY with a TP of INR3,400 (premised on 2x FY26 E BVPS) 
  •  AUM growth of ~4 % QoQ was driven by healthy growth across non -CV segments , like MSME (+10% QoQ), farm equipment (+7% QoQ) , and PV (+6 % QoQ) . 
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