OnEMI Technology Solutions Ltd (Kissht) is a digital-first NBFC serving India’s mass market, offering personal loans (PL) and loan against property through its mobile application. PL constituted about 92 per cent of AUM as of Q1FY27, with the rapidly scaling LAP business gradually diversifying the portfolio.
We believe Kissht is at an inflection point where a deliberate repricing towards higher-quality borrowers is being funded by three structural cost levers—operating leverage on an already-built technology base, a rating-led decline in funding cost, and improving credit loss experience — leaving RoAAUM stable at about 5 per cent even as total income/AAUM falls. LAP, which grew 396 per cent YoY to ₹620 crore, adds capital efficiency and lower loss given default to a predominantly unsecured book.
We expect AUM/PAT to grow at a CAGR of 44/49 per cent over FY26–28E and build average RoAAUM/RoE of 5.1/21.8 per cent over FY27E/28E.
We initiate coverage on Kissht with a Buy rating and a TP of ₹385, valuing the company at 2x FY28E P/B.
Key risks: Asset-quality deterioration in the small-ticket unsecured segment, with tenure extension potentially deferring rather than reducing lifetime losses; More than half of AUM sitting off-book, which limits direct asset-quality visibility and concentrates risk in FLDG capped at 5 per cent; and Higher-than-expected yield compression from rising competitive intensity.
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