Target: ₹570CMP: ₹486.35Poonawalla Fincorp (PFL)’s transformation into a diversified retail lender has moved beyond the investment phase. The newer businesses have attained meaningful scale and are emerging as incremental growth drivers, supported by a wider distribution footprint, improving digital capabilities and disciplined execution. The company’s profitability outlook continues to strengthen as higher-yielding businesses scale up, portfolio yields improve, and operating leverage begins to offset the elevated investment spend of the past two years. The combination of multiple growth engines, improving operating efficiency, AI-led productivity gains, and strengthening asset quality should drive superior earnings growth over the next few years. We reiterate our Buy rating with a target price of ₹570, based on 3.0x Mar’28E BVPS.