Buy IIFL Wealth Management, target price Rs 2109: ICICI Securities – Economic Times

has buy call on IIFL Wealth Management with a target price of Rs 2109. The current market price of IIFL Wealth Management is Rs 1621.8. Time period given by analyst is one year when IIFL Wealth Management Ltd. price can reach defined target.

IIFL Wealth Management Ltd., incorporated in the year 2008, is a Mid Cap company (having a market cap of Rs 14323.67 Crore) operating in NBFC sector.

IIFL Wealth Management Ltd. key Products/Revenue Segments include Fees & Commission Income for the year ending 31-Mar-2021.


For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 502.98 Crore, up 17.97 % from last quarter Total Income of Rs 426.36 Crore and up 26.88 % from last year same quarter Total Income of Rs 396.42 Crore. Company reported net profit after tax of Rs 142.49 Crore in latest quarter.

Investment Rationale
IIFL Wealth & Asset Management’s (IIFLW) earnings reaffirms confidence in consistent earnings delivery. PAT growth of 19% QoQ/63% YoY to Rs1.4bn was ahead of expectations of Rs1.2bn. ARR asset mix since 2019 has improved from 40% to 51.4%. Net flow in equity wealth management and alternate assets supported 12% QoQ/67% YoY growth in ARR assets. ARR revenue grew 16% QoQ/59% YoY, now constituting 61% of overall revenue. Retention on ARR assets stayed put at 72bps. Earnings were further buoyed by other income of Rs480mn (Rs210mn in Q1FY22). The company announced interim dividend of Rs20 per share with focus on improving capital efficiency. IIFLW stayed put on its strategic business priorities with relentless focus on clients, product innovation and building the right team. Revising earnings estimates by 7%/11% for FY22/FY23E, the brokerage also revises target price to Rs2,109 (earlier: Rs1,886) assigning 30x earnings.

Promoter/FII Holdings
Promoters held 22.78 per cent stake in the company as of 30-Sep-2021, while FIIs owned 25.67 per cent, DIIs 1.38 per cent.

(Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.