Poonawalla Fincorp Limited (POONAWALLA) fair value: what the stock is really worth
As of Oct 1, 2026: fair value of Poonawalla Fincorp Limited ₹85.48, price ₹433, upside -80.3%, quality 57 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
Structural break:
The valuation model sees a lasting decline in earnings power for this stock, the confidence band is broken. Treat the target with caution.
Stretched ValuationStrong overvaluation with only moderate quality.
!Fair value ₹85.48 · Strongly overvalued (−80.3%)
!Quality 57/100
✓Healthy Growth(revenue 5y +24.6 %/yr)
✓Highly profitable · 22.7% net margin (TTM)
!High debt · generates free cash flow
!Trails peers(4/12)
!Moderate moat62/100
!Evidence only low, so the estimate is less certain
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 28, 2026.
How to read this chart
60‑month range ₹142.84 – ₹542.50 · fair‑value band ₹60.31 – ₹100.52 · the ₹433.40 price screens above the ₹85.48 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 28, 2026.
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Poonawalla Fincorp Limited, a non-banking finance company, provides consumer and MSME financing services in India.
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Poonawalla Fincorp Limited, a non-banking finance company, provides consumer and MSME financing services in India. The company offers instant, personal, business, commercial vehicle, consumer durable, gold, education, professional, pre-owned car, medical equipment, and machinery loans; digital personal, and shopkeeper loans; loans against property; and mid-market and NBFC lending. It also provides supply chain financing and credit leasing services. In addition, the company offers insurance services. It serves individuals, salaried and self-employed professionals, students, proprietorship, MSMEs, OPCs, partnership firms, LLPs, private and public companies, private and public trusts, and society. The company was formerly known as Magma Fincorp Limited and changed its name to Poonawalla Fincorp Limited in July 2021. The company was incorporated in 1978 and is based in Mumbai, India. Poonawalla Fincorp Limited is a subsidiary of Rising Sun Holdings Pvt Ltd.
Stock analysis
Poonawalla Fincorp Limited (POONAWALLA) currently trades at ₹433.40, while our model-based Fair Value estimate is ₹85.48, 80.3% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth DCF group reads highest at a median of ₹267.71 per share, and 0 of the 7 models we run sit above the ₹433.40 price.
Bear case: the Asset-Based group reads lowest at ₹79.16, and 7 of the 7 models stay below the price. Evidence for this calculation is low.
Scenario range: ₹60.31 (bear) to ₹100.52 (bull), the price of ₹433.40 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 57/100 (solid quality), in the Financial Services sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Poonawalla Fincorp Limited reported revenue of ₹66.9B in FY2026 versus ₹15.1B in FY2022, a compound +45.0%/yr. Reported net income was ₹5.4B in FY2026, compounding +9.6%/yr from FY2022.
Key figures
Market cap ₹404B (≈ $4.2B) · P/E ratio 45.4 · P/S ratio 3.68 · EPS (TTM) ₹9.55 · Net margin 8.1% · Return on equity 5.9% · Return on assets (EBIT) 3.3% · Operating margin 39.0%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 46 out of 100 (low confidence).
What moves the price
The share trades about 20% below its 52-week high and 18% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at 10% fair-value upside, at −80%, POONAWALLA screens richer than that median.
Fair Value models
Bear ₹60.31Fair Value ₹85.48Bull ₹100.52
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2026 figures (about 6 months old). Earnings retained since then (₹4.87 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.95/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+67.2%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+52.9%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+24.6%
Start year 2021 (pandemic). Over 10 years: +10.0% a year
Revenue growth 21 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+22.3%
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What shareholders gained per year (last 5 years), in INR ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+17.3%
Earnings growth per share plus dividend.
Earnings per share, growth per year+17.3%
Dividend (yield on the price)0.0%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.17.3% vs −2.8%, picking up
Profit margin 2019 to 2024 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.18% → 41%
Start year 2021 (pandemic)
⚠ Revenue per share shrinking 7.5%/yr over ~10Y (margins intact) ⓘStructural-decline marker: revenue PER SHARE has fallen over the last decade (robust median trend, not a single year). Backtested across 2005 to 2017, such businesses trailed the market by about 2.5 percentage points per year. Display only: it does not change the fair value or the quality score.
Growth Forecast
Price in line with expectations
The price assumes about as much growth as the company has delivered so far and about what analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+24.8%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+23.4%
Yearly sales growth analysts expect, extended to five years.
After inflation (India: IMF forecast 4.1% a year to 2030, 4.7% from 2016 to 2025) that is about +19.8% a year for the price and +18.5% for the forecasts.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Credit Services · 331 stocks
Beats the industry median on 4/12 measures
Overall it trails its industry peers.
Valuation
Quality Score54 · Above median
Fair Value upside−80.3% · Bottom 25%
Profitability
Return on equity (TTM)5.9% · Below median
Return on assets1.1% · Below median
Net margin (TTM)22.7% · Above median
Operating margin (TTM)39.0% · Above median
Growth and dividend
Revenue growth100.3% · Top 25%
Balance sheet
Debt / equity4.65× · Highest 25%
Valuation Multiplesvs Credit Services median · lower = cheaper
P/E (TTM)45.4× · Priciest 25%
P/B3.91× · Priciest 25%
P/S (TTM)11.64× · Priciest 25%
P/FCF15.4× · Priciest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 51
FUTURE (revenue growth)100· sector 49
PAST (return on equity)23· sector 32
HEALTH (low debt)0· sector 59
DIVIDEND (yield)0· sector 65
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Is Poonawalla Fincorp Limited (POONAWALLA) overvalued or undervalued?
As of Sep 28, 2026, our model estimates a fair value of ₹85.48 versus a price of ₹433.40, about −80% upside (overvalued).
What is the fair value of POONAWALLA?
Our model-based fair value for Poonawalla Fincorp Limited is ₹85.48 (as of Sep 28, 2026), built from audited fundamentals. The current price: ₹433.40.
What is the quality score of POONAWALLA?
Poonawalla Fincorp Limited has a Quality Score of 57/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Poonawalla Fincorp Limited (POONAWALLA)?
Our model-based price target is the fair value of ₹85.48 (as of Sep 28, 2026) from 8 valuation models. Cautious scenario ₹60.31, optimistic scenario ₹100.52. It is a calculation from audited fundamentals, not an analyst target.
What is the Poonawalla Fincorp Limited stock forecast for 2026?
Our models put fair value at ₹85.48, about −80% upside versus a price of ₹433.40 (overvalued). Cautious scenario ₹60.31, optimistic scenario ₹100.52. The calculation is refreshed regularly with new filings.
What is the revenue of Poonawalla Fincorp Limited (POONAWALLA)?
Poonawalla Fincorp Limited reported trailing-twelve-month revenue of about ₹34.7B (latest available figure, as of Sep 28, 2026).
What growth is priced into Poonawalla Fincorp Limited (POONAWALLA)?
For today's price to be fair in a discounted-cash-flow model, Poonawalla Fincorp Limited would have to grow free cash flow by +24.8 % per year for five years (discount rate 10.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +24.6 % per year. As of Sep 28, 2026.
What discount rate (WACC) does the fair value of POONAWALLA use?
Our models discount Poonawalla Fincorp Limited at 10.9 %: a base by market capitalisation (mid), damped by beta 0.31, country premium for India. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Poonawalla Fincorp Limited that is +24.8 % per year a year over ten years, using the same discount rate (10.9 %) and the same formula as our fair value.
How much growth has Poonawalla Fincorp Limited (POONAWALLA) delivered so far?
Over the past 5 years revenue at Poonawalla Fincorp Limited grew +24.6 % a year. The price currently implies +24.8 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Poonawalla Fincorp Limited (POONAWALLA) growing?
The median revenue growth in the sector is +9.2 % a year. That is the yardstick for the growth priced into Poonawalla Fincorp Limited (+24.8 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Poonawalla Fincorp Limited (POONAWALLA)?
The free-cash-flow yield on the price is 7.65 %: that much free cash flow Poonawalla Fincorp Limited produces per unit of market value. When it exceeds the discount rate of our models (10.9 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Poonawalla Fincorp Limited (POONAWALLA)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Poonawalla Fincorp Limited it is ₹85.48 per share (as of Sep 28, 2026), against a price of ₹433.40. It is the blended result of 8 valuation models (cash flow, earnings, asset, dividend).
Is Poonawalla Fincorp Limited stock overvalued or undervalued in 2026?
As of Sep 28, 2026, POONAWALLA trades above its calculated fair value: price ₹433.40, fair value ₹85.48, a gap of about −80% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of POONAWALLA?
No. The price is what the market pays today (₹433.40); the fair value is what the company's own numbers justify (₹85.48). For Poonawalla Fincorp Limited the two are ₹347.92 per share apart. That gap is exactly why we show both numbers side by side.
How much is Poonawalla Fincorp Limited worth?
The market values Poonawalla Fincorp Limited at about ₹404B (market capitalisation, as of Sep 28, 2026). Per share that is ₹433.40; our models calculate a fair value of ₹85.48 per share.
What do the bullish and bearish scenarios say about POONAWALLA?
Our models span a range for Poonawalla Fincorp Limited: cautious scenario ₹60.31, base ₹85.48, optimistic ₹100.52 per share (as of Sep 28, 2026, price ₹433.40). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of POONAWALLA?
Poonawalla Fincorp Limited trades at a price-to-earnings ratio of 45.4 (as of Sep 28, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹85.48 is built from several models across several years. Other multiples: P/B 3.9, P/S 11.6.
How solid is the balance sheet of Poonawalla Fincorp Limited (POONAWALLA)?
Balance-sheet figures for Poonawalla Fincorp Limited (as of Sep 28, 2026): return on equity 5.9%, debt of 4.65 per unit of equity. They feed the Quality Score of 57/100, which measures business quality independently of the share price.
How far is POONAWALLA from its 52-week high?
Poonawalla Fincorp Limited trades at ₹433.40, about 20% below its 52-week high of ₹542.50 and 18% above the low of ₹368.40 (as of Oct 1, 2026). Distance from the high says nothing about value: that is what the fair value of ₹85.48 is for.
Which stocks are comparable to Poonawalla Fincorp Limited?
From the same area (Financial Services) we also value Visa Inc, Mastercard Incorporated, American Express Company, Capital One Financial Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Poonawalla Fincorp Limited stock attractive at the current price?
The data as of Sep 28, 2026: price ₹433.40, calculated fair value ₹85.48 (−80%), Quality Score 57/100, from 8 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of POONAWALLA calculated?
We run Poonawalla Fincorp Limited through 8 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of ₹85.48, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.5 % above its aggregate fair value. Poonawalla Fincorp Limited itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Poonawalla Fincorp Limited (POONAWALLA)?
The closing price on Oct 1, 2026 was ₹433.40. Our model-based fair value is ₹85.48, about −80% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Poonawalla Fincorp Limited right now?
The price sits above even our optimistic bull case (₹100.52). The favourable scenario is already priced in. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution. Solid but not exceptional quality (57/100) and above fair value, neither a clear bargain nor a standout compounder. For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Where does the earnings growth of Poonawalla Fincorp Limited (POONAWALLA) come from?
Earnings per share at Poonawalla Fincorp Limited grew +9.5 % a year from 2015 to 2026. Broken into its drivers: revenue per share −6.6 %, EBIT margin +9.0 %, tax rate +0.8 %, residual (interest, one-offs) +6.7 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Poonawalla Fincorp Limited
How large is the market capitalisation of Poonawalla Fincorp Limited (POONAWALLA)?
The market capitalisation of Poonawalla Fincorp Limited is ₹404B (≈ $4.2B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Poonawalla Fincorp Limited (POONAWALLA)?
The price-to-sales ratio of Poonawalla Fincorp Limited is 3.68 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Poonawalla Fincorp Limited (POONAWALLA)?
Earnings per share at Poonawalla Fincorp Limited are ₹9.55 (price ÷ EPS = P/E 45.4). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Poonawalla Fincorp Limited (POONAWALLA)?
The net margin of Poonawalla Fincorp Limited is 8.1% (fiscal year 2026). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Poonawalla Fincorp Limited (POONAWALLA)?
The return on equity (ROE) of Poonawalla Fincorp Limited is 5.9% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Poonawalla Fincorp Limited (POONAWALLA)?
On an EBIT basis the return on assets of Poonawalla Fincorp Limited is 3.3% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Poonawalla Fincorp Limited (POONAWALLA)?
The operating margin of Poonawalla Fincorp Limited is 39.0% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Poonawalla Fincorp Limited (POONAWALLA)?
Revenue at Poonawalla Fincorp Limited is growing +100% versus a year earlier (3y avg +52.9%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Poonawalla Fincorp Limited (POONAWALLA)?
Earnings per share at Poonawalla Fincorp Limited are growing +337% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Poonawalla Fincorp Limited (POONAWALLA) carry?
The net debt of Poonawalla Fincorp Limited is ₹481B (fiscal year 2026, ≈ 18.3 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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