SynopsisJM Financial has initiated coverage on OnEMI Technology Solutions with a Buy rating and a target price of Rs 385, implying around 28% upside from its reference price of Rs 301. The brokerage values the stock at 2x estimated FY28 book value, citing its digital lending platform Kissht and mass-market borrower focus.

comJM Financial has initiated coverage on OnEMI Technology Solutions with a Buy rating. JM Financial has initiated coverage on OnEMI Technology Solutions, which operates the digital lending platform Kissht, with a Buy call and a target price of Rs 385 per share.

The target implies an upside of about 28% from the brokerage’s reference price of Rs 301. 6 times at the reference price.

90 on the National Stock Exchange (NSE). 34% rise.

82 crore. OnEMI is a digital-first non-banking financial company catering primarily to mass-market borrowers.

It offers personal loans and loans against property through the Kissht mobile application. JM Financial expects the company’s AUM to grow at a compound annual rate of 44% between FY26 and FY28, increasing from around Rs 7,100 crore to Rs 14,700 crore.

1 crore in FY28. 8%, respectively, during FY27 and FY28, even as the company lowers lending rates to attract better-quality borrowers.

JM Financial said this repricing would be offset by operating leverage, lower borrowing costs and an improvement in credit costs. The company’s AUM stood at Rs 8,000 crore at the end of the first quarter of FY27, representing growth of 61% year-on-year and 13% sequentially.

This was ahead of management’s guidance for AUM growth of more than 40% in FY27. The brokerage also highlighted an improvement in the quality of new borrowers.

4% in FY25. 68% a year earlier.

8% by FY28. 5%.

More than 40% of LAP customers come from the existing personal-loan customer base, reducing acquisition costs. The secured-lending business operates through 101 branches and is expected to break even around the third quarter of FY27.

JM Financial expects its share of AUM to increase to 11% by FY28, helping reduce the portfolio’s credit risk and improve capital efficiency. 02% in FY28.

OnEMI’s strong post-IPO capital position, with a capital adequacy ratio above 40% in the June quarter, also provides headroom for further loan-book expansion. Disclosure: This article has been written by [Somanjali Das], who is not a SEBI-registered Research Analyst or an investment advisor.