Spandana Sphoorty - Articulation Of Next Five-Year Target From A Position Of Strength: 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 new management has successfully navigated various disruptions and consequent asset quality stress. With strengthened processes, it is now ready to capitalise on the strong opportunity in the MFI sector and deliver an assets under management compound annual growth rate of 34% over FY23-FY26E.We estimate Spandana to deliver FY26 return on asset/return on equity of 4.4%/17%, aided by:operating leverage resulting in decline in operating cost ratios, and normalisation in credit costs.Spandana trades at 1.5 times September-25E price/book value. Given the strong opportunity in the microfinance sector, we think that the company is poised for a further rerating if it executes well on its stated goal of quality growth. Maintain 'Buy' with a target price of Rs 1,200 (premised on 1.8 times Sep-25E book value). Key downside risks:Poor execution on asset quality could increase the credit cost; and inability to retain talent in the senior/middle management teams..Click on the attachment to read the full report:.Camlin Fine Sciences - China Dumping A Near Term Hindering Factor: Nirmal Bang.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 Sphoorty - Articulation Of Next Five-Year Target From A Position Of Strength: Motilal Oswal

Targets AUM of ~Rs 280 billion by FY28 with return on asset of more than 4.5% and return on equity of more than 18%

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Spandana Sphoorty - Articulation Of Next Five-Year Target From A Position Of Strength: Motilal Oswal

Targets AUM of ~Rs 280 billion by FY28 with return on asset of more than 4.5% and return on equity of more than 18%

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