Jefferies names Paytm, Groww and PB Fintech in 25% profit-growth picks
Jefferies expects Paytm, Groww, PB Fintech, AU Small Finance Bank and Poonawalla Fincorp to deliver at least 25% annual operating-profit growth over the next three years, supported by monetisation, financial-services expansion and lending growth.
What happened
Jefferies named Paytm, Groww, PB Fintech, AU Small Finance Bank and Poonawalla Fincorp as Indian growth picks, forecasting at least 25% annual operating-profit
Key facts
- At least 25% annual operating-profit growth over the next three years
- Paytm target: Rs 2,100 versus Rs 1,752.25
- Groww target: Rs 240 versus Rs 194.60; operating profit CAGR around 30% through FY29
- PB Fintech target: Rs 2,050 versus Rs 1,799.30
- AU Small Finance Bank target: Rs 1,270 versus Rs 1,061
- Poonawalla Fincorp target: Rs 560 versus Rs 448.50; AUM CAGR 34% through FY29
Why this matters
The forecast reinforces the strategic value of acquiring or partnering for lending, wealth and insurance capabilities that can deepen monetisation and diversify fintech revenue pools.
What to watch
- Quarterly operating-profit growth versus the 25% target and management guidance for FY growth.
- Revenue mix shifts toward lending, insurance, wealth, subscriptions and merchant services.
- Unsecured-loan delinquency, credit-cost and collection-efficiency trends.
- RBI actions affecting digital payments, fintech partnerships, credit underwriting or KYC compliance.
- Customer-acquisition cost, active-user growth, cross-sell rates and contribution-margin expansion.
- Funding-cost movement, deposit growth and net-interest-margin trends for AU Small Finance Bank and Poonawalla Fincorp.
- Track whether Paytm converts merchant-payment scale into higher financial-services and subscription revenue rather than relying on payment volume growth.
- Assess Groww and PB Fintech for lower customer-acquisition intensity and rising cross-sell penetration in broking, mutual funds, insurance and credit products.
- Monitor AU Small Finance Bank and Poonawalla Fincorp for loan-book growth quality, funding costs and provision trends; lending-led earnings growth is more cycle-sensitive than fee-led fintech growth.
- Expect peers to increase spending on customer acquisition, product bundling and partnerships with banks/NBFCs, potentially raising competitive intensity across digital finance.