Posted on May 13, 2025, by Niftynews
IIFL Finance share price today soared as much as 6% in early trade on May 13, following a major upgrade from global brokerage firm HSBC, which moved the stock to a ‘Buy’ rating and sharply hiked its price target by 45%, from ₹380 to ₹550.
At the time of writing, IIFL Finance shares were trading at ₹410.25, up 5.69% on the NSE. The strong move comes despite the company reporting a steep drop in quarterly profit, indicating growing investor confidence on the back of forward-looking earnings recovery and easing regulatory concerns.
📈 Why Is IIFL Finance Share Price Surging Today?
HSBC’s Bold Upgrade and Price Target Boost
HSBC’s upgrade is the primary driver of the rally in IIFL Finance share price today. The firm not only raised its recommendation to ‘Buy’ but also lifted its price target to ₹550, citing:
- Recovery in microfinance lending
- Improved system liquidity
- Lower funding costs
This represents a 45% increase over the previous price target of ₹380, indicating strong upside potential.
“We expect earnings per share (EPS) to recover meaningfully in FY26–FY27 as microfinance and core lending stabilize,” HSBC analysts noted.
💹 Current Stock Performance
| Metric | Value |
|---|---|
| Current Price | ₹410.25 |
| Intraday Gain | +5.69% |
| 2025 YTD Change | -2% |
| New Target Price | ₹550 (HSBC) |
| Previous Target | ₹380 |
📊 Q4 Results: Mixed Signals Behind the Rally
Earnings Dip, But Recovery on Horizon
Despite today’s rally, IIFL Finance reported a sharp 77% drop in consolidated net profit for Q4FY25 to ₹38 crore, down from ₹165 crore in the same quarter last year.
Financial Highlights – Q4 FY25
- Net Profit: ₹38 crore (↓ 77% YoY)
- Net Interest Income (NII): ₹546.6 crore (↓ 40% YoY)
- Total Income: ₹546.5 crore (↓ 36% YoY)
The earnings slump was primarily due to a temporary regulatory embargo on its gold loan business, which impacted revenues from key verticals.
Despite this, HSBC and other analysts are banking on a sharp rebound in FY26, assuming normalization in lending operations and cost control.
⚠️ Risks Highlighted by HSBC
While the upgrade is a positive sign, HSBC has also flagged several risks that could affect IIFL’s growth trajectory:
- Rising competition in the gold loan segment
- Yield pressure from lower exposure to unsecured lending
- Cost inflation across operations
- Regulatory scrutiny, especially in NBFC gold lending
Revised EPS Estimates
- FY26: Cut by 6%
- FY27: Slightly raised by 0.5%
- Valuation: 1.5x estimated FY27 book value per share
This mix of cautious optimism and strategic risk assessment has boosted market sentiment while keeping expectations grounded.
🧠 Analyst Sentiment: All Bulls, No Bears
Among the six analysts currently covering IIFL Finance, all have a ‘Buy’ rating, reflecting broad confidence in the company’s long-term fundamentals and growth recovery potential.
This uniform bullish sentiment suggests that the stock could see further institutional interest, especially if earnings visibility improves in the coming quarters.
🏦 About IIFL Finance
IIFL Finance Ltd. is a major Indian NBFC offering diversified financial products including:
- Gold loans
- Personal loans
- Business loans
- Home finance
- Microfinance services
The firm caters to both retail and SME clients and is known for its agility in underserved markets. Regulatory challenges have impacted recent performance, but its core lending model remains resilient.
🔍 Should You Buy IIFL Finance Stock Now?
Key Positives
✅ HSBC upgrade and target boost
✅ EPS recovery outlook in FY26-FY27
✅ Sector-wide growth in microfinance and personal loans
✅ Favorable liquidity environment
Risks to Monitor
⚠️ Weak Q4 results and regulatory overhang
⚠️ Margin pressures from competition and rate sensitivity
⚠️ Recovery tied closely to macroeconomic and policy dynamics
📝 Final Thoughts: IIFL Finance Share Price Today Reflects Future Optimism
The IIFL Finance share price today is telling a story of future potential outweighing current setbacks. With HSBC’s bullish stance, a 45% target price upgrade, and improving market conditions, investors appear ready to look beyond the short-term pain.
While challenges remain, especially in gold loans and yield management, the stock seems poised for a sustained recovery, provided the macro environment remains supportive.
For investors with a medium-to-long-term horizon, IIFL Finance could be a strategic buy on dips, especially if the ₹400–₹410 zone holds as a support base.
