IIFL Finance Limited (IIFL) AI Stock Analysis

Company Guidance

For FY 2027, management said there is no change in guidance and that it is on track to potentially exceed [INR 546 crore], 25% AUM growth, similar profit growth and ROE of around the upper end of the guidance in ROE is 20%; consolidated ROE is targeted at above 20% in the medium to long term and closing FY 2027 with a 20% ROE is possible. Home Finance AUM is expected to grow 18%-20%, with AUM growing around 4%, 5% per quarter and Home Finance ROE targeted at 16%-18% for next year; MSME and other businesses are targeted to reach 2.5%-3% ROA next year. Management expects microfinance growth to become positive in the second half, with disbursements targeted at close to INR 800 in October and around INR 1,000 a month by February or March, while income-generating gold loans, currently about 20%-25%, might go up little bit. If gold prices remain stable, even if they remain ±10%, and the environment of the economy remains what it is, management said it should be able to maintain growth momentum and that at least the second half will improve; equity capital is expected to be raised at the earliest opportunity, hopefully this quarter, with dilution anywhere from 10%-20%.