🏦 About Poonawalla Fincorp (POONAWALLA)
Business / Fundamentals Summary
Poonawalla Fincorp (formerly Magma Fincorp) is an NBFC (non-banking finance company) operating in consumer & MSME lending across India.
The promoter is Rising Sun Holdings, an entity of Adar Poonawalla.
Recently, the promoter infused ₹1,500 crore via preferential allotment, strengthening the capital base.
The stock has relatively weak profitability metrics: ROE is negative (≈ –1.2% in latest) and ROCE is modest (≈ 5-6 %)
Price / Book ratio is elevated — around 4–5× depending on source.
The company has seen healthy growth in assets and revenue in recent quarters/years.
Strengths / Risks (Fundamental)
Strengths Risks / Weaknesses
Fresh promoter capital infusion adds cushion and confidence Profitability is weak / negative EPS in TTM for some quarters
Growth potential in consumer / MSME lending in India High valuation multiples vs fundamentals (high P/B)
Strong brand backing due to connection with Poonawalla / Adar Poonawalla Interest costs / credit risk (NBFCs are vulnerable to credit cycles)
Rising AUM and loan book expansion Execution / asset quality risk
From a “story” or narrative angle, the capital infusion and backing by a well-known promoter are positives that can drive market confidence, but the real financials must improve (profit, margins, asset quality) for this to be sustainable.
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📈 Technical / Price Action Idea
Below is a sample technical sketch you can adapt to your chart (with actual levels from your preferred timeframe).
Observations & Possible Setups
1. Trend & Momentum
The stock has seen strong upward moves recently, capturing attention and hitting fresh highs.
Volume spikes on up days suggest institutional / interest support.
2. Support / Resistance Zones
Support Zone: Around previous consolidation or pullback levels. For example, one may look for support around ₹480–₹500 (or lower depending on your timeframe).
Resistance / Target Zone: The next supply zones / swing highs. If the stock breaks above the recent high, your target could be near ₹550–₹580 (your own risk / reward judgment).
Use pivot levels, moving averages (e.g. 50 DMA, 200 DMA) to guide dynamic support/resistance.
3. Breakout / Pullback Setup
If it consolidates near support and holds, this could be a long on pullback opportunity with tight stop loss below support.
Alternatively, wait for a breakout above resistance with volume confirmation to enter long.
Risk management is key: NBFCs can be volatile, so keep stop-loss tight relative to your entry.
4. Indicators / Confirmation
RSI / Momentum: Look for RSI bouncing from oversold or crossing above midline.
MACD: A bullish crossover or positive histogram expansion might confirm upward bias.
Volume: Confirm with rising volume in direction of breakout.
Bollinger Bands / VWAP: Helps identify mean reversion / trend strength zones.
5. Watch out for Reversal Signals
If stock fails to hold support or shows bearish divergence (price higher, RSI lower), that may warn of reversal or correction.
Business / Fundamentals Summary
Poonawalla Fincorp (formerly Magma Fincorp) is an NBFC (non-banking finance company) operating in consumer & MSME lending across India.
The promoter is Rising Sun Holdings, an entity of Adar Poonawalla.
Recently, the promoter infused ₹1,500 crore via preferential allotment, strengthening the capital base.
The stock has relatively weak profitability metrics: ROE is negative (≈ –1.2% in latest) and ROCE is modest (≈ 5-6 %)
Price / Book ratio is elevated — around 4–5× depending on source.
The company has seen healthy growth in assets and revenue in recent quarters/years.
Strengths / Risks (Fundamental)
Strengths Risks / Weaknesses
Fresh promoter capital infusion adds cushion and confidence Profitability is weak / negative EPS in TTM for some quarters
Growth potential in consumer / MSME lending in India High valuation multiples vs fundamentals (high P/B)
Strong brand backing due to connection with Poonawalla / Adar Poonawalla Interest costs / credit risk (NBFCs are vulnerable to credit cycles)
Rising AUM and loan book expansion Execution / asset quality risk
From a “story” or narrative angle, the capital infusion and backing by a well-known promoter are positives that can drive market confidence, but the real financials must improve (profit, margins, asset quality) for this to be sustainable.
---
📈 Technical / Price Action Idea
Below is a sample technical sketch you can adapt to your chart (with actual levels from your preferred timeframe).
Observations & Possible Setups
1. Trend & Momentum
The stock has seen strong upward moves recently, capturing attention and hitting fresh highs.
Volume spikes on up days suggest institutional / interest support.
2. Support / Resistance Zones
Support Zone: Around previous consolidation or pullback levels. For example, one may look for support around ₹480–₹500 (or lower depending on your timeframe).
Resistance / Target Zone: The next supply zones / swing highs. If the stock breaks above the recent high, your target could be near ₹550–₹580 (your own risk / reward judgment).
Use pivot levels, moving averages (e.g. 50 DMA, 200 DMA) to guide dynamic support/resistance.
3. Breakout / Pullback Setup
If it consolidates near support and holds, this could be a long on pullback opportunity with tight stop loss below support.
Alternatively, wait for a breakout above resistance with volume confirmation to enter long.
Risk management is key: NBFCs can be volatile, so keep stop-loss tight relative to your entry.
4. Indicators / Confirmation
RSI / Momentum: Look for RSI bouncing from oversold or crossing above midline.
MACD: A bullish crossover or positive histogram expansion might confirm upward bias.
Volume: Confirm with rising volume in direction of breakout.
Bollinger Bands / VWAP: Helps identify mean reversion / trend strength zones.
5. Watch out for Reversal Signals
If stock fails to hold support or shows bearish divergence (price higher, RSI lower), that may warn of reversal or correction.
כתב ויתור
המידע והפרסומים אינם מיועדים להיות, ואינם מהווים, ייעוץ או המלצה פיננסית, השקעתית, מסחרית או מכל סוג אחר המסופקת או מאושרת על ידי TradingView. קרא עוד ב־תנאי השימוש.
כתב ויתור
המידע והפרסומים אינם מיועדים להיות, ואינם מהווים, ייעוץ או המלצה פיננסית, השקעתית, מסחרית או מכל סוג אחר המסופקת או מאושרת על ידי TradingView. קרא עוד ב־תנאי השימוש.