We initiate coverage on IIFL Finance (IIFL) with a BUY rating and a target price of INR 760. We believe IIFL Finance is a direct play on ‘increasing financial formalisation’ with its presence in high-growth segments. Its diversified product portfolio, along with strong >4,000 physical branches, focus on scaling high-margin products like gold loans, MFI, digital loans etc., end-to-end digital process, tight control on asset quality and capital optimisation via co-lending could help it sustain >20% growth and 20% RoE in the near term.