Poonawalla Fincorp Limited (POONAWALLA) AI Stock Analysis

• Market Cap: ₹342.19B
• Dividend Yield: 0.94%
• Average Volume (3M): 49.90K
• Price to Earnings (P/E): 170.6
• Beta (1Y): 1.29
• Revenue Growth: 29.15%
• EPS Growth: -118.68%
• Country: IN
• Employees: 2,384
• Sector: Financial
• Sector Strength: 71
• Industry: Financial - Credit Services
• EPS (TTM): 0.81
• Shares Outstanding: 779,208,600
• 10 Day Avg. Volume: 38,415
• 30 Day Avg. Volume: 49,895
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹453.00
• Price Target Upside: 3.15% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 51 Neutral
• Price Target: ₹453.00 ▲(3.15% Upside)

Poonawalla Fincorp Limited's overall stock score is primarily impacted by its financial performance, which indicates significant challenges with declining revenue and negative cash flow. Technical analysis shows some short-term stability, but bearish momentum persists. Valuation concerns arise from a negative P/E ratio, suggesting potential overvaluation.

Positive Factors

Revenue Growth

Despite recent challenges, Poonawalla Fincorp has shown strong revenue growth of over 29%, indicating potential for market expansion and product adoption.

Technology Leverage

The company's focus on technology enhances operational efficiency and customer reach, providing a competitive advantage in the financial services sector.

Strategic Partnerships

Partnerships with financial institutions expand Poonawalla Fincorp's customer base and improve service offerings, supporting long-term growth and stability.

Negative Factors

Declining Profitability

The company faces declining profitability and high leverage, which could impact its ability to sustain operations and invest in growth.

Negative Cash Flow

Negative cash flow over multiple years indicates challenges in converting earnings into cash, potentially limiting financial flexibility and growth.

High Leverage

High leverage can strain financial resources and increase risk, impacting the company's ability to manage economic downturns or invest in new opportunities.

Poonawalla Fincorp Limited Business Overview & Revenue Model

Company Description

Poonawalla Fincorp Limited (POONAWALLA) is a non-banking financial company (NBFC) in India, providing a wide range of financial services. The company primarily focuses on consumer and small business loans, offering products such as personal loans, business loans, loan against property, and pre-owned car loans. Poonawalla Fincorp is committed to providing quick, easy, and affordable financial solutions to meet the diverse needs of its customers.

How the Company Makes Money

Poonawalla Fincorp Limited generates revenue through interest income from its various lending products including personal loans, business loans, loans against property, and pre-owned car loans. The company charges interest on the principal amount borrowed by customers, which forms the primary source of its income. Additionally, Poonawalla Fincorp may earn revenue through processing fees, late payment charges, and other ancillary fees associated with its loan products. The company's strategic partnerships with various financial institutions and its focus on leveraging technology for efficient lending processes also contribute to its overall earnings by expanding its customer base and enhancing operational efficiency.

Poonawalla Fincorp Limited Financial Statement Overview

Summary

Poonawalla Fincorp Limited is experiencing financial challenges, with declining revenue, negative profitability, and high leverage. The cash flow position is particularly concerning, with sustained negative free cash flow.

Income Statement

The company shows fluctuating revenue with a recent downturn, as revenue decreased by 32% from the previous year. Gross and EBIT margins have declined, leading to a negative net income in the latest period. The negative net profit margin indicates challenges in maintaining profitability, despite a relatively stable EBITDA margin.

Balance Sheet

The balance sheet reflects high leverage, with a debt-to-equity ratio consistently above 3. The equity ratio improved slightly over time but remains low. Return on equity has turned negative recently, suggesting inefficiencies in generating returns on shareholder funds.

Cash Flow

The company faces significant cash flow challenges, with negative operating and free cash flows for the past three years. The free cash flow to net income ratio has been negative, indicating an inability to convert profits into cash flow effectively. Financing activities have been the primary source of cash inflow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	35.53B	40.67B	29.51B	19.96B	15.68B	23.52B
Gross Profit	20.77B	19.15B	17.04B	7.67B	7.84B	7.87B
EBITDA	13.52B	13.88B	8.36B	13.14B	9.14B	4.20B
Net Income	-983.40M	-983.40M	16.83B	6.84B	3.75B	-5.59B
Balance Sheet
Total Assets	350.30B	350.30B	240.87B	232.21B	164.43B	132.12B
Cash, Cash Equivalents and Short-Term Investments	322.90M	322.90M	2.69B	6.57B	7.30B	8.77B
Total Debt	260.81B	260.81B	152.16B	112.09B	99.73B	104.75B
Total Liabilities	268.55B	268.55B	159.20B	163.47B	103.84B	110.18B
Stockholders Equity	81.75B	81.75B	81.67B	68.61B	60.56B	21.94B
Cash Flow
Free Cash Flow	0.00	-106.13B	13.42B	-53.18B	-31.12B	16.22B
Operating Cash Flow	0.00	-105.69B	-78.01B	-52.37B	-30.49B	16.44B
Investing Cash Flow	0.00	-4.82B	29.69B	-1.10B	1.43B	813.46M
Financing Cash Flow	0.00	108.21B	43.31B	57.48B	29.03B	-15.74B

Poonawalla Fincorp Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 439.15
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:POONAWALLA, the sentiment is Positive. The current price of 439.15 is below the 20-day moving average (MA) of 444.94, below the 50-day MA of 445.10, and above the 200-day MA of 375.35, indicating a neutral trend. The MACD of -1.93 indicates Positive momentum. The RSI at 49.26 is Neutral, neither overbought nor oversold. The STOCH value of 64.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:POONAWALLA.

Poonawalla Fincorp Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CENTRALBK	71 Outperform	₹329.29B	7.49		0.55%	9.94%	35.44%
Sector *	68 Neutral	$18.02B	11.58	9.93%	3.76%	9.73%	1.31%
IIFL	58 Neutral	₹184.72B	56.99		0.75%	2.65%	-81.55%
MANAPPURAM	56 Neutral	₹243.10B	30.39		1.03%	4.83%	-64.41%
POONAWALLA	51 Neutral	₹342.19B	170.63		0.94%	29.15%	-118.68%
LICHSGFIN	46 Neutral	₹309.63B	5.63		1.76%	4.57%	15.87%
M&MFIN	―	₹377.03B	15.11		6.18%	―	―

Poonawalla Fincorp Limited Corporate Events

Poonawalla Fincorp Allots ₹1,000 Crore in Non-Convertible Debentures

Poonawalla Fincorp Limited announced the allotment of 100,000 secured, redeemable, rated, listed non-convertible debentures, each with a face value of ₹1,00,000, totaling ₹1,000 crore, through a private placement. This strategic move, approved by the company’s Finance Committee, aims to strengthen the company’s financial position and enhance its market presence by listing these debentures on the BSE Limited’s Debt Market Segment. The debentures have a tenure of nearly three years with a 7.58% annual interest rate, and they are secured by a first-ranking pari passu charge on hypothecated properties, providing a robust security cover for investors.

Poonawalla Fincorp Advances Digital Transformation with AI Solutions

Poonawalla Fincorp Limited has announced the deployment of four AI-driven solutions as part of its digital transformation strategy. These solutions, which include an Agentic AI-powered Data Quality Index, an AI-powered Infrastructure Management Solution, a proprietary Fin-Bot for financial intelligence, and an AI-led Invoice Management System, aim to enhance operational efficiency, precision, and scalability. This move signifies the company’s commitment to integrating AI into its core operations, positioning itself as a digitally advanced and agile NBFC, and potentially improving decision-making, compliance, and financial workflows.

Poonawalla Fincorp Limited Successfully Concludes 45th AGM with All Resolutions Passed

Poonawalla Fincorp Limited successfully conducted its 45th Annual General Meeting (AGM) on July 29, 2025, through video conferencing. The meeting included electronic voting, where all proposed resolutions were passed with the required majority. The proceedings and voting results were submitted in compliance with SEBI regulations and are available on the company’s website.

Poonawalla Fincorp Announces 45th AGM and Annual Report Release

Poonawalla Fincorp Limited has announced the details of its 45th Annual General Meeting (AGM), scheduled for July 29, 2025, which will be conducted via video conferencing. The company has also made its Annual Report for the financial year 2024-25 available online, ensuring compliance with SEBI regulations by sending web-links to shareholders who have not registered their email addresses. Additionally, the company reminds shareholders to update their KYC details and dematerialize physical securities in accordance with SEBI’s recent circular, which mandates electronic payments for dividends and other financial transactions.

Poonawalla Fincorp Reports Strong AUM Growth and Business Expansion

Poonawalla Fincorp Limited reported a significant growth in its Assets Under Management (AUM), which increased by 52.9% year-over-year and 15.8% quarter-over-quarter, reaching approximately ₹41,250 crore as of June 30, 2025. The company maintains ample liquidity at ₹4,450 crore and has successfully launched six new businesses, showing positive traction. This expansion aligns with its strategy of focusing on sustainable growth and robust risk management, enhancing its market positioning and long-term profitability.

Poonawalla Fincorp Corrects Debenture Allotment Announcement

Poonawalla Fincorp Limited has corrected a previous announcement regarding the allotment of Non-Convertible Debentures. Initially, the company reported the issuance of 80,000 debentures, but the correct figure is 160,000. This correction ensures accurate information is provided to stakeholders and aligns with regulatory requirements, reflecting the company’s commitment to transparency and compliance.