The revised estimate implies an upside potential of nearly 41.61% from the stock’s previous close of Rs 388.40.
The broker cited a recovery in IIFL's microfinance segment, improved system liquidity, and a decline in cost of funds (CoF) as key drivers behind its optimistic outlook. It also revised the company's EPS estimates, cutting FY26 by 6%, but nudging FY27 up by 0.5%.
However, the report flagged rising competition in the gold loan segment as a potential risk that could pressure margins going forward.
On a consolidated basis, net profit of IIFL Finance declined 44.38% to Rs 207.68 crore while total income declined 11.22% to Rs 2,594.35 crore in Q4 March 2025 over Q4 March 2024.
IIFL Finance, along with its subsidiaries IIFL Home Finance and IIFL Samasta Finance, is a leading retail-focused NBFC offering diversified loan products, including home, gold, MSME, microfinance, and capital market finance.