FAQ on Stonegate Capital Partners' Coverage Initiation on Choice International Ltd.

What is the significance of Stonegate Capital Partners initiating coverage on Choice International Ltd.?

The initiation of coverage by Stonegate Capital Partners signifies a professional analysis and recognition of Choice International Ltd.’s financial health and growth potential, providing investors with valuable insights.

How did Choice International Ltd. perform in the first quarter of FY26?

Choice International Ltd. reported a strong start to FY26 with 1Q26 revenue of ₹2.38B, up 16% y/y, EBITDA rose 49% to ₹870M, and PAT increased by 50% to ₹480M, driven by improved operating efficiency.

What are the key business segments contributing to Choice International Ltd.’s growth?

Key segments include Stock/Equity Broking, Wealth Products, Insurance Distribution, NBFC Segment, Government Advisory, and Investment Banking, each showing significant growth and contribution to the company’s revenue.

What is the expected annual growth rate for Choice International Ltd.?

Management expects to maintain an annual growth rate of 25–30%.

How has the digital engagement in Choice International Ltd.’s broking segment performed?

Digital engagement in the broking segment has strengthened, with 67% of broking revenue now generated online.

What was the growth in Choice International Ltd.’s wealth management AUM?

Wealth management AUM expanded 443% y/y to ₹47.7B, primarily due to the acquisition of Arete Capital’s wealth business.

How did Choice International Ltd.’s NBFC segment perform in terms of loan book growth?

The NBFC segment’s retail loan book doubled y/y to ₹5.96B, with the total loan book reaching ₹7.45B, focusing on secured MSME lending and rooftop solar finance.

What valuation methods did Stonegate Capital Partners use for Choice International Ltd.?

Stonegate used a DCF Model, EV/Operating Income comp analysis, and a P/E analysis, resulting in valuation ranges with mid-points of $9.12, $9.58, and $9.47 respectively.

Where can I find more information about Stonegate Capital Partners?

Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies.