Stonegate Capital Partners has recently initiated coverage on Choice International Ltd. (NSE: CHOICEIN), spotlighting the company's notable financial achievements and its strategic expansion across multiple sectors. The firm's first-quarter revenue for FY26 soared to ₹2.38B, a 16% increase year-over-year, with EBITDA and PAT rising by 49% and 50% to ₹870M and ₹480M, respectively. This financial uptick is attributed to improved operational efficiency and significant margin expansion.
Choice International's growth extends beyond financial metrics, with its network now encompassing 208 branch offices and over 58,000 Choice Business Associates (CBAs), reinforcing its national presence. The management's projection of a 25–30% annual growth rate underscores confidence in the company's market position and operational prowess.
The broking segment, contributing to about 60% of total revenue, has demonstrated consistent growth, with client assets under broking climbing to ₹478B, a 16% year-over-year increase. The wealth management sector has experienced a dramatic 443% surge in AUM to ₹47.7B, fueled by the acquisition of Arete Capital’s wealth business. Meanwhile, the insurance distribution business continues its upward trajectory, with premium collections and policies sold increasing by 62% and 46%, respectively.
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 further diversified the company's portfolio, securing a ₹5.86B order book.
Stonegate Capital Partners' valuation of Choice International, employing a DCF Model, EV/Operating Income comp analysis, and P/E analysis, presents a bright future for the company. With a valuation range of $7.01 to $12.88 and a mid-point of $9.12, Choice International emerges as a compelling investment opportunity. For further insights into Stonegate Capital Partners' analysis, visit https://www.stonegateinc.com.
