Spandana Q4 Review - Earnings Inline; Net Interest Margin Sees Strong Expansion: Motilal Oswal

"NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Spandana Sphoorty Financial Ltd.’s Q4 FY24 profit after tax grew 22% YoY to ~Rs 1.29 billion (inline), driven by net interest margin expansion despite higher credit costs. In Q4, net interest income grew 43% YoY to ~Rs 3.85 billion (9% beat). FY24 profit after tax stood at ~Rs 5 billion (versus Rs 124 million in FY23). Pre- provision operating profit in Q4 grew ~2% YoY to Rs 2.7 billion. Spandana continued to pursue customer acquisition-led growth with the addition of ~440,000 customers (up 30% QoQ). The total borrower count rose ~47% YoY to 3.32 million. .Spandana has refined its processes by adopting the right tools and technologies. The new management team has fortified governance and risk controls and scaled up multiple technology-related initiatives.  Spandana trades at 1.2 times March-26E price/book value, with return on asset/return on equity of 4.4%/17% in FY26E. Given the strong opportunity in the microfinance sector, we think Spandana is poised for a further rerating if it navigates Project Parivatan well and demonstrates stability in forwards flows and credit costs. Maintain Buy with a target price of Rs 1,075 (premised on 1.5 times FY26E BV)..Click on the attachment to read the full report:.Poonawalla Fincorp Q4 Review - Operating Profit Inline; Earnings Beat Due To Lower Tax Rate: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Spandana Q4 Review - Earnings Inline; Net Interest Margin Sees Strong Expansion: Motilal Oswal

Headline asset quality improved but forward flows continued

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Spandana Q4 Review - Earnings Inline; Net Interest Margin Sees Strong Expansion: Motilal Oswal

Headline asset quality improved but forward flows continued

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