Stonegate Capital Partners Initiates Coverage on Choice International Ltd. with Strong FY26 Start

Stonegate Capital Partners has initiated coverage on Choice International Ltd. (NSE: CHOICEIN), spotlighting the company's impressive start to FY26 with a 16% year-over-year revenue increase to ₹2.38B and a 50% rise in PAT to ₹480M. This growth is attributed to enhanced operating efficiency and a notable margin expansion of 462bps. Choice International's expansion is further evidenced by its 208 branch offices and a distribution network exceeding 58,000 Choice Business Associates (CBAs), with management projecting a sustained annual growth rate of 25–30%.

The broking segment, accounting for approximately 60% of total revenue, demonstrated steady growth, with client assets under broking reaching ₹478B, a 16% increase year-over-year. The company's digital engagement is strengthening, with 67% of broking revenue now generated online. Wealth management has emerged as a high-growth vertical, with AUM soaring 443% year-over-year to ₹47.7B, largely due to the acquisition of Arete Capital’s wealth business. This segment benefits from an integrated digital platform and a diversified product suite catering to HNI and UHNI clients.

Choice International's insurance distribution business has shown remarkable progress, with premium collections rising 62% year-over-year to ₹763M, supported by a 46% increase in policies sold. The NBFC segment is scaling its MSME and green finance offerings, with the retail loan book doubling year-over-year to ₹5.96B. The government advisory segment boasts a ₹5.86B order book, fueled by new project wins, while the investment banking division is actively managing 24 ongoing mandates and a ₹66B+ fundraising pipeline.

Stonegate Capital Partners' valuation of Choice International Ltd. employs a DCF Model, EV/Operating Income comp analysis, and P/E analysis, suggesting a valuation range with a mid-point of $9.12 to $9.58. This coverage initiation underscores Choice International Ltd.'s strong market position and growth trajectory across its diversified business segments. For more information, visit https://www.stonegateinc.com.