International brokerage Jefferies has identified five Indian financial companies, including Paytm, Groww, Policybazaar-parent PB Fintech, AU Small Finance Bank and Poonawalla Fincorp, that can deliver a 25% compound annual growth rate (CAGR) over the next three years, delivering decent investor returns despite higher valuations.
In its latest note on what it called ‘The 25% CAGR club of Indian Financials’, Jefferies said these five Indian financial companies that have a market capitalisation of near or above $5 billion can deliver strong earnings growth with healthy revenue growth and economies from scale. The international brokerage ignores normalisation of credit costs and low base in its calculations. In most of these companies, founders are also CEOs, Jefferies highlighted as it maintained ‘Buy’ calls on all the five stocks.
