Choice International Ltd. Shows Robust Growth and Strategic Expansion, Garnering Analyst Coverage
TL;DR
Choice International Ltd. offers a competitive edge with a 16% y/y revenue increase and a 50% PAT rise, signaling strong growth potential for investors.
Choice International Ltd.'s growth is driven by a 462bps margin expansion, 208 branch offices, and over 58,000 CBAs, showcasing a scalable business model.
Choice International Ltd. enhances financial inclusion and supports MSMEs and green finance, contributing to sustainable economic development and better futures for communities.
Choice International Ltd. surprises with a 443% y/y AUM growth in wealth management and a 91% increase in health insurance inquiries, highlighting dynamic sector performance.
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Choice International Ltd. (NSE: CHOICEIN) has recently caught the attention of Stonegate Capital Partners, initiating coverage on the company due to its notable financial achievements and strategic growth across multiple sectors. The company reported a strong start to FY26, with first-quarter revenues hitting ₹2.38B, a 16% increase from the previous year. This financial uptick is further evidenced by a 49% rise in EBITDA to ₹870M and a 50% jump in PAT to ₹480M, achievements attributed to improved operational efficiency and significant margin expansion.
Beyond the numbers, Choice International is expanding its physical and operational footprint across India. With 208 branch offices and a network of over 58,000 Choice Business Associates (CBAs), the company is solidifying its national presence. Management's projection of sustaining an annual growth rate of 25–30% underscores confidence in the company's market position and operational capabilities.
The broking segment remains a cornerstone of Choice International's revenue, contributing approximately 60% of the total. Client assets under broking have grown by 16% year-over-year to ₹478B. Meanwhile, the wealth management sector has experienced explosive growth, with AUM surging by 443% to ₹47.7B, largely due to the strategic acquisition of Arete Capital’s wealth business. The insurance distribution arm continues its upward trajectory, with a 62% increase in premium collections to ₹763M, supported by a 46% rise in policies sold.
Choice International's NBFC vertical has also seen substantial growth, with the retail loan book doubling to ₹5.96B and the total loan book reaching ₹7.45B, all while maintaining stable credit quality. The government advisory segment has secured a ₹5.86B order book, showcasing the company's diversified business model and its prowess in landing significant projects.
Stonegate Capital Partners' analysis, employing a DCF Model, EV/Operating Income comp analysis, and P/E analysis, paints a promising picture for Choice International. With a valuation range of $7.01 to $12.88 and a mid-point of $9.12, the company stands out as a potentially attractive investment opportunity. For further insights into Stonegate Capital Partners' coverage, visit https://www.stonegateinc.com.
Curated from Reportable
