Motilal Oswal has a call to buy on IIFL Wealth Management Ltd. with a target price of Rs 1500.

The current market price of IIFL Wealth Management Ltd. is Rs 1,125.6.

IIFL Wealth Management Ltd., incorporated in 2008, is a mid-cap company (with a market capitalization of Rs 9,672.38 Crore) operating in the NBFC sector.

For the quarter ended 03/31-2021, the company reported total consolidated income of Rs 435.88 Crore, down -6.40% from last quarter Total income of Rs 465.68 Crore and up 0.65% over same quarter last year Total income of Rs 433.06 Crore. The company reported after-tax net profit of Rs 103.30 Crore in the last quarter.

Justification of the investment
Over the past decade, IIFLWAM has grown into one of the leading wealth management franchises in India. It has also become one of the largest alternative asset managers, with unique product offerings. The AMC activity has grown rapidly and now represents 18% of the total AUM. The traction in IIFL-ONE remains healthy. However, the yields are still below normal. In 4QFY21, net flows were encouraging. The brokerage keeps the estimates largely unchanged.

Promoter / FII Holdings
The promoters held 22.9% of the company’s capital as of March 31, 2021, while the FIIs held 24.2%, the DII 2% and the public and others 50.8%.

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