Spandana – Embarking On Self-Sustainable Tech-Enabled Customer-Led Growth Journey: ICICI Securities

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..ICICI Securities Report.Spandana Spoorthy Financial Ltd., in its Analyst Day, unveiled ‘Vision 2028’ – a roadmap that emphasis on a tech enabled customer-led growth journey and a strong focus on risk management. Spandana aims to grow its assets under management to Rs 280 billion (implying more than 25% compound annual growth rate between FY23-28) with a customer base of ~6.2 million (implying 22% CAGR). Vision 2028 also stresses on effective capital utilisation, evident in its near-term return on equity target of 22-24% and sustainable RoE at more than 18% and likely AUM CAGR of ~25% between FY23-28. Microfinance would remain the core business and shall strictly follow the JLG model with weekly collection. The company also plans to scale the secured business via its wholly-owned subsidiary Criss Financial with LAP and Nano enterprise loans. It does not intend to enter into individual unsecured loans in the near-future; if at all it does enters this space in the medium term, it would cap maximum exposure at 5% of total AUM. Retain 'Buy'; target price revised to Rs 1,400 (from Rs 1,100), valuing at 2.5 times (earlier two times earlier) Sep-24E book value per share..Key risks: Stress unfolding higher than anticipated; and operational instability caused by outside interference..Click on the attachment to read the full report:.Spandana Sphoorty - Articulation Of Next Five-Year Target From A Position Of Strength: 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 – Embarking On Self-Sustainable Tech-Enabled Customer-Led Growth Journey: ICICI Securities

Spandana aims to grow its AuM to Rs 280 billion CAGR between FY23-28) with a customer base of ~6.2 million (implying 22% CAGR).

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Spandana – Embarking On Self-Sustainable Tech-Enabled Customer-Led Growth Journey: ICICI Securities

Spandana aims to grow its AuM to Rs 280 billion CAGR between FY23-28) with a customer base of ~6.2 million (implying 22% CAGR).

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