Motilal Oswal Bull Case: 75% Upside for Northern Arc Capital

• Motilal Oswal initiates coverage on Northern Arc Capital with a 'Buy' rating and a price target of ₹360, projecting a 46% upside.
• In its bull case scenario, Motilal Oswal sees the stock rallying as much as 75%.
• Northern Arc Capital serves underserved retail credit segments across MSME, consumer, and rural markets with a pan-India network and proprietary technology.
• The company has transitioned to a higher-yielding D2C mix (56% currently, targeting 70%), expected to improve yields and profitability.
• Motilal Oswal finds the stock attractive at 7 times its FY27E P/E, modeling an AUM CAGR of 20% and PAT CAGR of 34% over FY26-28E.