Stonegate Capital Partners has recently initiated coverage on Choice International Ltd. (NSE: CHOICEIN), spotlighting the company's notable financial achievements and strategic growth across multiple sectors. The first quarter of FY26 saw Choice International's revenue climb to ₹2.38B, a 16% increase year-over-year, alongside a 49% rise in EBITDA to ₹870M and a 50% increase in PAT to ₹480M. These figures underscore the company's enhanced operational efficiency and margin expansion.
With 208 branch offices and a network exceeding 58,000 Choice Business Associates (CBAs), Choice International is broadening its national presence. The management's projection of a 25–30% annual growth rate further attests to the company's robust market position and operational prowess.
The broking segment, responsible for about 60% of total revenue, has demonstrated consistent growth, with client assets under broking hitting ₹478B, up 16% year-over-year. The wealth management sector has experienced a dramatic 443% increase in AUM to ₹47.7B, largely fueled by the acquisition of Arete Capital’s wealth business. Meanwhile, the insurance distribution business continues its upward trajectory, with premium collections rising 62% to ₹763M, supported by a 46% increase in policies sold.
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 secured a ₹5.86B order book, further diversifying the company's business model and showcasing its capability to land significant projects.
Stonegate Capital Partners' valuation of Choice International, employing a DCF Model, EV/Operating Income comp analysis, and P/E analysis, suggests 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 presents a compelling growth and investment opportunity. For more information on Stonegate Capital Partners' coverage, visit https://www.stonegateinc.com.
