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Poonawalla Fincorp Limited (POONAWALLA) Fair Value & Analysis

Financial Services · IN · Market cap ₹400B

PF Poonawalla Fincorp Limited POONAWALLA · NSE
Price₹497.45
Fair Value₹80.44
Upside-83.8%
Quality57/100
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Healthy Growth
Solidly profitable · 18.6% net margin
High debt · generates free cash flow
Trails peers (4/13)
Moderate moat 60/100
Evidence: High Range ₹60.33 – ₹100.55 Share as image

Fair value as of: Aug 13, 2026

From 11 valuation models · updated 4 days ago

Share price +4.2% over the past month.

A solid business, but screening 84% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (₹100.55). The favourable scenario is already priced in.
  • 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.
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Price vs Fair Value (5 years)

₹542.50 ₹115.50 Fair Value ₹80.44 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range ₹115.50 – ₹542.50 · fair‑value band ₹60.33 – ₹100.55 · the ₹497.45 price screens above the ₹80.44 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Poonawalla Fincorp Limited (POONAWALLA) currently trades at ₹497.45, while our model-based Fair Value estimate is ₹80.44, implying the stock looks roughly 83.8% overvalued today. The Quality Score stands at 57/100 (solid quality), in the Financial Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Poonawalla Fincorp Limited generated revenue of ₹29.2B at a net margin of 18.6%. Revenue grew 67.4% year over year. It earns a return on equity of 5.9%. Net debt stands at ₹481B. Fundamentals as of Aug 13, 2026

Our scenario range runs from ₹60.33 (bear case) to ₹100.55 (bull case); at ₹497.45, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 13% below its 52-week high and 38% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at -45% fair-value upside, at -84%, POONAWALLA screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model 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. Evidence
Highest evidence
Growth DCF ₹430.12 ₹1,424 80
Residual Income ₹93.17 ₹95.79 ₹95.29 76
Rev-Margin DCF ₹9.70 74
All 11 models by family
DCF Models
10Y P/E Exit ₹37.55 35
Earnings-Based
Graham-Dodd ₹42.07 ₹273.70 ₹382.93 54
Lynch FV ₹79.56 ₹113.66 ₹147.76 50
Dividend Discount
Gordon GGM ₹33.76 ₹73.71 ₹124.01 70
DDM Multi-Stage ₹33.76 ₹60.38 ₹76.81 61
Multiples
P/E Multiple ₹60.33 ₹80.44 ₹100.55 63
P/B Multiple ₹78.89 ₹105.19 ₹131.48 55
Asset-Based
NCAV (Graham) ₹59.09 ₹79.18 ₹118.18 50
Growth DCF
Growth DCF ₹430.12 ₹1,424 80
Rev-Margin DCF ₹9.70 74
Economic Profit
Residual Income ₹93.17 ₹95.79 ₹95.29 76

Widest divergence: Growth DCF (₹430.12) versus Dividend Discount (₹60.38). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) ₹29.2B
Revenue growth (YoY) +67.4%
Net margin 18.6%
Return on equity 5.9%
Free cash flow ₹26.2B FY2026
P/E ratio 73.0
More key figures
Operating margin 35.5%
EPS (TTM) ₹6.81
EPS growth (YoY) +288%
Net debt ₹481B FY2026

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 57/100

Of which business quality 50 · Market factors (momentum, volatility) 60

Profitability 21
Margins and returns on capital today
Quality Growth 82
Are margins and returns improving?
Cashflow 100
Earnings quality: real cash, not paper profit
Fin. Strength 2
Balance sheet, leverage, solvency risk
Investment 42
Disciplined investing over empire-building
Low Volatility 75
Calm price path (market factor)
Momentum 54
Price trend over the last 3–12 months (market factor)
52W Momentum 53
Distance to the 52-week high (market factor)
Net Issuance 66
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

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 …

Full company description

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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

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.

Growth Quality 95/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
₹66.9B
Latest YoY
+67.2%
Avg. growth/yr (3Y) 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.
+52.9%
Avg. growth/yr (5Y) 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.
+24.6%
Avg. growth/yr (21Y) 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.
+22.3%
Revenue +45.0%/yr
FY22 ₹15.1B
FY23 ₹18.7B
FY24 ₹29.5B
FY25 ₹40.0B
FY26 ₹66.9B
Net income +9.6%/yr
FY22 ₹3.8B
FY23 ₹6.8B
FY24 ₹16.8B
FY25 −₹983M
FY26 ₹5.4B
Character of growth · EPS growth decomposed (2015-2026) +9.5 % p.a.
Revenue per share −6.6 pp

of which total revenue +7.5 pp · buybacks/dilution −14.2 pp

EBIT margin +9.0 pp
Tax rate +0.8 pp
Residual (interest, one-offs) +6.3 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

POONAWALLA screens 84% overvalued. Compare with Visa Inc →

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Cite: Fair Value Calculator (2026). "Poonawalla Fincorp Limited Fair Value". https://www.fairvalue-calculator.com/stock/POONAWALLA

Peer Group

Credit Services · 334 stocks

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.

Quality Score 53 · Above median
Fair Value upside −84% · Bottom 25%
Return on equity (TTM) 6% · Below median
Return on assets 1% · Below median
Net margin (TTM) 19% · Below median
Operating margin (TTM) 35% · Above median
Revenue growth 67% · Top 25%
Dividend yield (TTM) 0.8% · Below median
Debt / equity 4.65× · Higher than 75% of peers

Valuation Multiples vs Credit Services median · lower = cheaper

P/E (TTM) 73.0× · Pricier than 75% of peers
P/B 3.87× · Pricier than 75% of peers
P/S (TTM) 13.71× · Pricier than 75% of peers
P/FCF 0.2× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 33
FUTURE 100 · sector 39
PAST 23 · sector 32
HEALTH 0 · sector 59
DIVIDEND 15 · sector 58

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Credit Services stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Visa Inc V $359.42 $198.27 -45%
Mastercard Incorporated MA $561.44 $221.87 -60%
Bajaj Finance Limited BAJFINANCE ₹1,094 ₹397.61 -64%
Shriram Finance Limited SHRIRAMFIN ₹1,117 ₹553.83 -50%
Cholamandalam Investment and Finance Company CHOLAFIN ₹1,918 ₹796.52 -58%
Tata Capital Limited TATACAP ₹367.05 ₹149.40 -59%
Power Finance Corporation PFC ₹376.50 ₹615.85 +64%
Muthoot Finance Limited MUTHOOTFIN ₹2,876 ₹3,429 +19%
Indian Railway Finance Corporation IRFC ₹88.35 ₹69.72 -21%
REC Limited RECLTD ₹346.00 ₹692.00 +100%

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Frequently asked questions

Is Poonawalla Fincorp Limited (POONAWALLA) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ₹80.44 versus a price of ₹497.45, about −84% (overvalued).
What is the fair value of POONAWALLA?
Our model-based fair value for Poonawalla Fincorp Limited is ₹80.44 (as of Aug 13, 2026), built from audited fundamentals. The current price is ₹497.45.
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 revenue of Poonawalla Fincorp Limited (POONAWALLA)?
Poonawalla Fincorp Limited reported trailing-twelve-month revenue of about ₹29.2B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of POONAWALLA?
The net profit margin of Poonawalla Fincorp Limited is about 18.6%, meaning it keeps roughly 18.6% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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