Shares of Jana Small Finance Bank rose more than 3 percent on Tuesday as brokers see almost 45 percent upward potential of the previous closure of £ 415.15. Nuvama Institutional shares initiated coverage on the shares with buy -rating at a target price of £ 600, so that the attractive valuations, the expected stability in returns and better activa quality were hunted.
Nuvama analysts expect his gross loan book to be 21 percent CAGR compared to FY24-27, with 80 percent jumped into the share of secure loans by the end of FY27 of 68 percent, in line with management guidelines.
For six years, the bank has undergone an important transformation, including a shift to a balanced and secure retailing book, which reforms the microfinance book, the deposit base and the advancing technological possibilities improves.
For FY25, it is expected that OPEX will remain increased due to incremental efforts for collecting. According to Nuvama, however, it is likely to relieve FY26 because of the moderation in collection costs and increasing business efficiency. On the way to secure loans will also slip and ultimately limit credit costs.
However, the credit costs are expected to remain high in FY25 in the midst of industrial stress in the MFI segment.
The brokerage estimates the net turnover of the bank and the net profit to clock 19 percent and 13 percent CAGR over FY24-27. The Net Rentemarge (NIM) is expected to moderate TAD as a result of a decreasing share in the high -quality unsecured loan portfolio.
It is expected that it is 7.3 percent or 7.2 percent in FY26-27.
The share of 3.31 percent acted positively on the NSE at £ 428.90 from 11.31 hours, after a peak of £ 416.
Towards the end of March 2025, the bank opened its first branch in Andhra Pradesh in Guntur.
Published on April 8, 2025
