Credit Suisse has increased the target price on the shares of IIFL Holdings, after the Indian diversified financial services player reported a 25 percent rise in consolidated net profit at 229.1 crore for quarter-ended September 30, as compared to the year-ago quarter. The company’s net profit stood at Rs 183.1 crore, during July-September quarter of 2016-17.Credit Suisse observed that the company has reported strong growth across lending and fee-based businesses. Further, the global firm said that the results were in line with the expectations. IIFL’s income surged nearly 42 percent to Rs 944.4 crore in the second quarter of 2017-18 from Rs 666.4 crore in the same period year-ago.

Credit Suisse has increased the share price target to Rs 740, from the previous target of Rs 690. IIFL shares were trading at Rs 630 on NSE this morning, up by more than 2.9% since the previous close. The target price implies an upside of more than 17% from the current market prices. Notably, IIFL shares have risen by more than 132% since January. In comparison, the BSE Midcap index is up by 38% in the same period. The NIfty Financial Services index is up by more than 38% in the year.

“We are pleased to report continued robust growth in all our core businesses. Our performance reinforces our confidence in our strategy to make earnings durable and de-risked. Our loans and mortgages business strategy of focusing on retail lending and digital delivery, makes it largely immune from banks’ competition. Wealth and asset management continues to grow on the back of innovative products with customer centricity,” IIFL Holdings chairman Nirmal Jain said in a statement yesterday. IIFL is engaged in the business of loans and mortgages, asset and wealth management, capital markets and financial products distribution, investment banking, institutional equities and realty services through its various subsidiaries.

Source: FinancialExpress

Credit Suisse cheers for IIFL Holdings’ shares on strong Q2 earnings

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