IIFL Finance Shares Climb 3% Amid DAM Capital's Bullish Forecast of Up to 35% Upside Potential
IIFL Finance Shares Rise 3% Amid Bullish Outlook from DAM Capital
Shares of IIFL Finance rose over 3% on June 3 after DAM Capital said it sees up to 35% upside for the stock. The brokerage firm cited the company's presence across the nation as a key driver for market share gain from unorganized players in the gold loan segment.
In its thesis for the NBFC stock, DAM Capital highlighted the company's non-gold book, which is better compared to peers, with housing forming a major share. The firm expects growth and earnings to be healthy from here on, following recent consolidation.
At 11:15 am on June 3, IIFL Finance shares were trading 3% higher at Rs 494.7 apiece. DAM Capital's note on IIFL Finance stock stated that the stock trades at 1.1x on FY28e book and ~6.5x on FY28e earning. The firm expects 2.5% plus Return on Assets (RoA) and above mid-teens Return on Equity (RoE) over the next two years.
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IIFL Finance reported a significant increase in consolidated net profit to Rs 623 crore for the fourth quarter ended March 2026, driven by a rise in interest income and improved asset quality. This represents a two-fold increase from the same quarter a year ago, when the company earned a net profit of Rs 251 crore.
The company's consolidated total income during January-March 2026 rose to Rs 3,700 crore compared to Rs 2,594 crore in the year-ago period. Interest income of IIFL Finance, which offers a range of loans and mortgages, increased to Rs 3,330 crore during the quarter against Rs 2,483 crore in the year-ago period.
The company's asset quality also improved during the quarter, with gross non-performing assets moderating to 1.46% from 2.2% at the end of March 2025. Net NPAs also eased to 0.73% against 1% at the end of the fourth quarter of the previous year.
| Quarter | Consolidated Total Income (Rs Crore) | Interest Income (Rs Crore) | Gross NPAs | Net NPAs |
|---|---|---|---|---|
| January-March 2026 | 3,700 | 3,330 | 1.46% | 0.73% |
| January-March 2025 | 2,594 | 2,483 | 2.2% | 1% |
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Investor Takeaway
Investors may consider IIFL Finance stock for potential upside.
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