Stonegate Capital Partners Initiates Coverage on Choice International Ltd. Highlighting Strong Growth and Expansion
Stonegate Capital Partners has initiated coverage on Choice International Ltd., showcasing its significant growth in revenue, EBITDA, and PAT, alongside expansion in its national footprint and diverse business segments.
Stonegate Capital Partners has recently initiated coverage on Choice International Ltd. (NSE: CHOICEIN), a move that underscores the company's robust financial performance and strategic expansion across various sectors. Choice International reported a remarkable start to FY26, with a 16% year-over-year increase in revenue to ₹2.38B, a 49% rise in EBITDA to ₹870M, and a 50% surge in PAT to ₹480M. This growth is attributed to enhanced operating efficiency and a significant margin expansion of 462bps year-over-year.
The company's expansion is not just limited to financial metrics but also includes a growing physical presence, with 208 branch offices and a distribution network exceeding 58,000 Choice Business Associates (CBAs). Management's confidence is reflected in their expectation to sustain an annual growth rate of 25–30%.
Choice International's broking segment, accounting for approximately 60% of total revenue, has shown steady growth, with client assets under broking reaching ₹478B, a 16% increase year-over-year. The digital transformation within the company is evident, with 67% of broking revenue now generated online.
The wealth management sector has seen exponential growth, with AUM expanding by 443% year-over-year to ₹47.7B, largely due to the acquisition of Arete Capital’s wealth business. This growth is supported by an integrated digital platform and a broadened product suite catering to HNI and UHNI clients.
Insurance distribution has also seen significant traction, with premium collections rising by 62% year-over-year to ₹763M. The NBFC segment continues to scale, with the retail loan book doubling year-over-year to ₹5.96B, supported by a focus on secured MSME lending and rooftop solar finance.
Choice International's government advisory and investment banking segments are also contributing significantly to its growth, with a ₹5.86B order book and a ₹66B+ fundraising pipeline, respectively. Stonegate Capital Partners' valuation of Choice International, using a DCF Model, EV/Operating Income comp analysis, and P/E analysis, suggests a promising outlook for the company. For more details on Stonegate Capital Partners' coverage, visit https://www.stonegateinc.com.