ICICI Securities initiates buy on Spandana Sphoorty Financial, target price Rs 1400

ICICI Securities has initiated coverage on Spandana Sphoorty Financial with a buy rating and target price of Rs 1,400 per share. Considering the potential business growth-backed branch expansion plan, focus on cost optimisation and better financial leverage, the brokerage expects the return ratios to improve going forward. Though the journey from a negative net worth in FY12 to one of the most profitable MFIs in FY19 is remarkable, sustainability of the current high return on assets managed is crucial, it said. The stock ended down 0.7% at Rs 1,163.90 on Friday.