Pune-based Poonawalla Fincorp surpassed the market capitalisation of Federal Bank on Tuesday, as better-than expected profit in the March quarter, along with an improved asset quality boosted investors inclination to the counter.

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On Tuesday, shares of Poonawalla Fincorp climbed to a record high of Rs 354.10 on the NSE, hitting a market valuation of Rs 27,197 crore, which is about Rs 400 crore higher than that of Federal Bank’s market cap. The stock of Poonawalla Fincorp has surged as much as 14 percent so far in 2023, in contrast Federal Bank has seen a nine percent drop during the same period.

However, Poonawalla Fincorp beating the market cap of Federal Bank is not for the first time. In January 2022, the former had overtaken Federal Bank in market valuation.

The net profit of Poonawalla Fincorp has more than doubled in March quarter to Rs 181 crore. Even, the bottom-line for FY23 also jumped two-fold to Rs 585 crore. While Gorss Non-Performing Assets (GNPA) declined 25 basis points (bps) quarter-on-quarter to 1.44 percent, its net NPA came down by 11 bps quarter-on-quarter to 0.78 percent at the end of March 2023. The company also reported 37 percent year-on-year and 16 percent quarter-on-quarter rise in AUM to Rs 16,143 crore.

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Moreover, analysts on the Street seem more bullish on Poonawalla stock, with all of them suggesting a “Buy”, against 90 percent for Federal Bank shares.