JM Financial has initiated coverage on OnEMI Technology Solutions (Kissht) with a Buy rating and a target price of ₹385 per share, implying an upside of approximately 28% from the current market price of ₹309.10. According to reports from The Hindu BusinessLine, the brokerage values the stock at 2x estimated FY28 book value, compared to 1.6x at the reference price. Following the coverage announcement, OnEMI Technology shares rose as much as 3.8% to an intraday high of ₹316.90 on the National Stock Exchange.
JM Financial expects OnEMI Technology's assets under management (AUM) to grow at a compound annual rate of 44% between FY26 and FY28, increasing from around ₹7,100 crore to ₹14,700 crore. As reported by The Economic Times, profit after tax is projected to grow at a CAGR of 49% over the same period, rising from ₹281.5 crore in FY26 to ₹445.8 crore in FY27 and ₹629.1 crore in FY28. The brokerage expects average return on assets and return on equity to remain at around 5.1% and 21.8% respectively during FY27 and FY28, even as the company lowers lending rates to attract better-quality borrowers.
JM Financial estimates that operating expenses as a percentage of average AUM will decline to 15.2% by FY28 from around 19.6% in FY26. According to The Economic Times, credit cost is projected to fall to 6.2% from 8.2% during the same period. The company's AUM stood at ₹8,000 crore at the end of the first quarter of FY27, representing growth of 61% year-on-year and 13% sequentially, ahead of management's guidance for AUM growth of more than 40% in FY27. The brokerage expects gross non-performing assets to moderate from 2.12% in FY26 to 2.02% in FY28.
The company's loan against property (LAP) assets rose nearly fivefold year-on-year to ₹620 crore in the June quarter, increasing their share of total AUM to 7.7% from 2.5%. As reported by The Economic Times, more than 40% of LAP customers come from the existing personal-loan customer base, reducing acquisition costs. The secured-lending business operates through 101 branches and is expected to break even around the third quarter of FY27. The brokerage highlighted an improvement in borrower quality, with 95.5% of borrowers added during FY26 having credit scores above 700, while the fixed-obligation-to-income ratio for new customers declined to 30.2% from 34.4% in FY25. Personal loans constituted about 92% of AUM as of Q1FY27, with the rapidly scaling LAP business gradually diversifying the portfolio.
OnEMI's average cost of borrowings declined to 14.45% in the first quarter of FY27 from 15.68% a year earlier. According to The Economic Times, JM Financial expects the borrowing cost to decline further to 12.8% by FY28. The company's strong post-IPO capital position, with a capital adequacy ratio above 40% in the June quarter, provides headroom for further loan-book expansion. The stock recorded a traded value of ₹10.96 crore, while its free-float market capitalisation stood at ₹1,627.82 crore.
