Poonawalla Fincorp Gains 1.61%: Key Technical and Financial Drivers This Week

29 December 2025: Stock Gains Amid Market Weakness

Poonawalla Fincorp began the week on a positive note, closing at Rs.476.30, up 0.72% from the previous Friday’s close of Rs.472.90. This gain was notable as the Sensex declined by 0.41% to 37,140.23 on the same day, reflecting the stock’s relative strength. The volume of 38,228 shares traded indicated steady investor interest despite broader market pressures. This early resilience set the tone for the week’s cautious optimism.

30 December 2025: Upgrade to Buy Boosts Confidence

The most significant event of the week occurred on 30 December when MarketsMOJO upgraded Poonawalla Fincorp’s Mojo Grade from Hold to Buy, reflecting strong financial and technical momentum. The stock surged 1.56% to close at Rs.483.75, outperforming the Sensex which was nearly flat, down 0.01% at 37,135.83. This upgrade was driven by robust quarterly results, including record net sales of ₹1,542.30 crores and a net profit growth of 18.53%. Promoter confidence also strengthened, with a 1.5% increase in promoter shareholding to 63.96%, signalling faith in the company’s governance and prospects.

Despite a premium valuation with a price-to-book ratio of 4 and a modest ROE of 2.2%, the upgrade acknowledged the company’s strong operational performance and bullish technical indicators. The stock’s 53.24% return over the past year, vastly outperforming the BSE500 index’s 5.56%, further justified the positive reassessment.

31 December 2025: Technical Momentum Shifts Bullish

On the final trading day of 2025, Poonawalla Fincorp’s technical indicators showed a clear shift towards bullish momentum. The stock closed at Rs.482.80, a slight decline of 0.20% from the previous day, but the overall technical outlook improved markedly. Key indicators such as daily moving averages turned decisively bullish, with the stock trading comfortably above these averages. Bollinger Bands on weekly and monthly charts signalled expanding upward volatility, while On-Balance Volume (OBV) readings confirmed strong buying interest.

While the weekly MACD and KST indicators remained mildly bearish, monthly charts showed bullish trends, suggesting medium-term strength despite short-term consolidation. The Relative Strength Index (RSI) remained neutral, indicating the stock was not overbought and had room for further gains. This technical upgrade complemented the recent Mojo Grade improvement and reinforced the stock’s positive trajectory within the NBFC sector.

1 January 2026: Modest Gains Continue

Trading on the first day of the new year saw Poonawalla Fincorp inch higher by 0.12% to Rs.483.40, with volume increasing to 45,488 shares. The Sensex also rose modestly by 0.14% to 37,497.10. This steady performance reflected continued investor confidence following the recent upgrade and technical momentum shift. The stock maintained its position above key moving averages, supporting the bullish outlook established in the previous session.

2 January 2026: Week Closes Slightly Lower

The week concluded with a slight pullback as Poonawalla Fincorp closed at Rs.480.50, down 0.60% from the previous day’s close. Despite this minor decline, the stock ended the week with a 1.61% gain from the prior Friday’s close of Rs.472.90. The Sensex, meanwhile, rose 0.81% to 37,799.57 on the day, finishing the week up 1.35%. The volume surged to 82,458 shares, indicating active trading interest. This minor correction may reflect short-term profit-taking after the week’s positive developments but does not detract from the overall bullish momentum established.

Key Takeaways

Positive Signals: The upgrade to a Buy rating by MarketsMOJO on 30 December was a pivotal event, reflecting strong quarterly financials and improved technical indicators. Promoter stake increase to 63.96% signals confidence in the company’s governance and prospects. Technical momentum shifted bullish with supportive moving averages, Bollinger Bands, and OBV readings, indicating sustained buying interest. The stock outperformed the Sensex over the week, gaining 1.61% versus the benchmark’s 1.35% rise.

Cautionary Notes: Despite the positive momentum, valuation remains elevated with a price-to-book ratio of 4 and a modest ROE of 2.2%, suggesting limited margin for valuation expansion. The weekly MACD and KST indicators showed mild bearishness, signalling potential short-term consolidation. The slight decline on the final trading day may reflect profit-taking. Investors should monitor upcoming earnings and technical signals for confirmation of sustained growth.

Conclusion

Poonawalla Fincorp Ltd demonstrated a resilient and moderately bullish performance over the week ending 2 January 2026. The combination of a Mojo Grade upgrade, strong quarterly results, and a shift to bullish technical momentum supported the stock’s 1.61% weekly gain, slightly outperforming the Sensex. While valuation metrics remain stretched and some short-term technical indicators suggest caution, the overall fundamental and technical backdrop favours a constructive outlook. The stock’s ability to maintain gains amid mixed market conditions highlights its relative strength within the NBFC sector.

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