Company Overview
Company Overview: Pepper Money Limited (ASX: PPM) is an Australia-based non-banking lender. The Company's segments include Mortgages, Asset Finance, and Loan and Other Servicing. The Mortgages segment includes both residential mortgages and commercial real estate and includes the revenues and direct expenses associated with the origination of residential mortgages in Australia and New Zealand. Plenti Group Limited (ASX: PLT) is an Australia-based fintech lending and investment company, which provides loans through leveraging its technology. The Company provides automotive, renewable energy and personal loans, and is focused on borrowers with a strong credit profile. Additionally, it seeks to provide retail investors with returns by investing in loans via its lending marketplace. Kalkine’s Sector Report covers the Investment Summary, Sector Overview & Supporting Catalysts, Data Insights & Analysis, Financial Metrics, Financial Commentary, Risks, Outlook, Technical Analysis along with the Valuation, Target Price, and Recommendation on selected stocks.
Investment Summary
Sector Overview and Supporting Drivers
Australia’s financial sector is a cornerstone of the economy, dominated by well-capitalised banks, alongside insurers, asset managers, and superannuation funds. The sector benefits from a resilient regulatory framework led by the Reserve Bank of Australia and Australian Prudential Regulation Authority, ensuring stability and strong risk management. Mortgage lending remains a key driver, reflecting the importance of housing. Growth is supported by population expansion, rising wealth, and compulsory superannuation contributions. However, profitability is influenced by interest rate cycles, funding costs, and regulatory requirements, while risks stem from high household debt and property market exposure.
Sector Catalysts
Index Performance
Investment theme and stocks under discussion (PPM, PLT)
After understanding the sectors, let us now look at two companies from the financial sector listed on the ASX. The price potential of the companies under discussion have been analysed based on Price/Book and Price/Earnings per share based relative valuation methods, respectively.
1. ASX: PPM (Pepper Money Limited)
(Recommendation: ‘Speculative Buy’ at AUD 1.72; Potential Upside: Low Double-Digit; MCap: AUD 813.08Mn)
PPM is an Australia-based non-banking lender. The Company's segments include Mortgages, Asset Finance, and Loan and Other Servicing. The Mortgages segment includes both residential mortgages and commercial real estate and includes the revenues and direct expenses associated with the origination of residential mortgages in Australia and New Zealand.
Insights & Outlook
The stock has corrected by ~25.22% in the last one month, and over the past six months, it has fallen by ~15.69%. The stock has a 52-week low and high of AUD 1.270 and AUD 2.580, respectively and is currently trading below the mid-level of this annual trading range. PPM was last covered in a report dated ‘28 November 2025’.
2. ASX: PLT (Plenti Group Limited) (Recommendation: ‘Speculative Buy’ at AUD 0.780; Potential Upside: Low Double-Digit; MCap: AUD 138.48Mn)
PLT is an Australia-based fintech lending and investment company, which provides loans through leveraging its technology. The Company provides automotive, renewable energy and personal loans, and is focused on borrowers with a strong credit profile. Additionally, it seeks to provide retail investors with returns by investing in loans via its lending marketplace.
Insights & Outlook
The stock has corrected by ~16.02% in the last one month, and over the past six months, it has fallen by ~50.97%. The stock has a 52-week low and high of AUD 0.690 and AUD 1.650, respectively and is currently trading below its 52-week mid-level. PLT was last covered in a report dated ‘1 July 2025’.
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Note 1: Past performance is neither an Indicator nor a guarantee of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 2 April 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual’s appetite for upside potential, risks, holding duration, and any previous holdings. An ‘Exit’ from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.
Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Technical Indicators Defined: -
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer-
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