Shares of IIFL Finance rose over 2% in Wednesday’s session even as HSBC trimmed its target price amid a cautious outlook on the financial sector.
The stock gained 2.04% to Rs 439.25, up Rs 8.80 from its previous close of Rs 430.45. During the session, it traded in a range of Rs 434.25 to Rs 445.80, taking its market capitalization to approximately Rs 18,677 crore. The company currently trades at a price-to-earnings ratio of 14.70.
HSBC maintained a ‘buy’ rating on the stock but reduced its target price to Rs 510 from Rs 710 earlier. The brokerage highlighted that the ongoing Middle East conflict could impact demand, growth, and margins across financial companies.
According to HSBC, early pressure has emerged on the liability side, while asset-side stress could also develop across multiple segments going forward. The brokerage has cut its estimates for assets under management (AUM) growth, margins, and earnings per share (EPS) across the sector.
Despite the cautious stance, the brokerage continues to maintain a positive view on select non-banking financial companies, including IIFL Finance.
As of Wednesday’s session, the stock remained in focus with steady buying interest.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.