Arman Financial Services Ltd

Arman Financial Services Ltd

₹ 2,020 -1.91%
16 Jul - close price
About

Arman Financial Service Ltd is an RBI-registered category ‘A’ Non-Banking Finance Company. They provide loans to the unorganized sector residing in rural and semi-rural locales across six states with around 400 branches that cater to about 7.6 lakh customers.
Headquartered in Ahmedabad, Gujarat. Arman and its subsidiary provide three financial services, Two-Wheeler Finance, Group-Based Microfinance, and Micro-Enterprise (MSME) Loans. [1]

Key Points

Business Segments
Consolidated AUM
AUM 2437 Cr in Q3FY24 vs 1654 Cr in Q3FY23
Microfinance-
AUM 2046 Cr in Q3FY24 vs 1367 Cr in Q3FY23. [1] Namra, a wholly-owned subsidiary of Arman, which manages the Microfinance division was the first company in India to be granted the NBFC-MFI license in 2013. [2]
This Segment provides small loans to women for livelihood promotion without collateral for agriculture and allied business, livestock farming, dairy, small kirana stores. It operates in 10 states, with 394 branches, ~7.6 lakh live customers. [3]

  • Market Cap 2,116 Cr.
  • Current Price 2,020
  • High / Low 2,680 / 1,697
  • Stock P/E 12.2
  • Book Value 776
  • Dividend Yield 0.00 %
  • ROCE 21.9 %
  • ROE 29.5 %
  • Face Value 10.0

Pros

  • Company is expected to give good quarter
  • Company has delivered good profit growth of 45.8% CAGR over last 5 years
  • Company has a good return on equity (ROE) track record: 3 Years ROE 27.8%
  • Company's median sales growth is 37.5% of last 10 years

Cons

  • Though the company is reporting repeated profits, it is not paying out dividend
  • Company has low interest coverage ratio.
  • Promoter holding is low: 22.1%
  • Contingent liabilities of Rs.871 Cr.
  • Promoter holding has decreased over last 3 years: -5.37%

* The pros and cons are machine generated. Pros / cons are based on a checklist to highlight important points. Please exercise caution and do your own analysis.

Peer comparison

Sector: Finance Industry: Finance & Investments

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Quarterly Results

Consolidated Figures in Rs. Crores / View Standalone

Mar 2021 Jun 2021 Sep 2021 Dec 2021 Mar 2022 Jun 2022 Sep 2022 Dec 2022 Mar 2023 Jun 2023 Sep 2023 Dec 2023 Mar 2024
Revenue 45 49 50 58 76 79 93 103 149 150 160 169 183
Interest 20 20 20 25 25 29 36 44 63 64 67 71 63
25 23 24 24 29 30 30 29 37 35 34 42 55
Financing Profit -0 6 7 10 22 20 27 30 49 50 59 56 65
Financing Margin % -0% 13% 14% 16% 30% 26% 29% 29% 33% 34% 37% 33% 36%
0 0 0 0 -0 -0 -0 -0 -0 -0 -0 -0 0
Depreciation 0 0 0 0 0 0 0 0 0 0 0 0 0
Profit before tax -0 6 7 10 22 20 27 29 49 50 58 55 65
Tax % 680% 45% 34% 27% 26% 21% 25% 25% 26% 20% 30% 24% 21%
1 4 5 7 16 16 20 22 36 40 41 42 51
EPS in Rs 1.02 4.21 5.71 8.27 19.17 18.50 23.46 25.88 42.63 47.02 46.86 42.91 48.51
Gross NPA % 5.70% 4.10% 3.60% 2.80% 2.48% 2.83% 2.88%
Net NPA % 1.40% 0.70% 0.30% 0.20% 0.23% 0.33% 0.31%
Raw PDF

Profit & Loss

Consolidated Figures in Rs. Crores / View Standalone

Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024
Revenue 17 24 30 41 54 78 139 214 195 235 424 661
Interest 6 9 11 16 24 34 59 88 79 89 172 265
6 9 9 12 20 34 44 72 103 99 126 167
Financing Profit 5 7 9 12 10 10 37 53 13 46 126 229
Financing Margin % 29% 28% 32% 30% 19% 13% 26% 25% 6% 20% 30% 35%
-0 -0 0 -0 0 0 0 1 0 -0 -0 0
Depreciation 0 0 0 0 0 0 0 1 1 1 1 1
Profit before tax 5 7 9 12 10 10 36 54 12 46 125 228
Tax % 30% 32% 33% 34% 36% 26% 27% 23% 10% 30% 25% 24%
3 5 6 8 6 7 26 42 11 32 94 174
EPS in Rs 5.91 7.92 10.77 13.99 11.05 12.76 45.98 49.13 12.51 37.35 110.46 165.67
Dividend Payout % 14% 15% 13% 12% 11% 9% 4% -0% -0% -0% -0% -0%
Compounded Sales Growth
10 Years: 39%
5 Years: 37%
3 Years: 50%
TTM: 56%
Compounded Profit Growth
10 Years: 44%
5 Years: 46%
3 Years: 154%
TTM: 85%
Stock Price CAGR
10 Years: 56%
5 Years: 39%
3 Years: 43%
1 Year: -5%
Return on Equity
10 Years: 24%
5 Years: 25%
3 Years: 28%
Last Year: 30%

Balance Sheet

Consolidated Figures in Rs. Crores / View Standalone

Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024
Equity Capital 6 7 7 7 7 7 7 8 8 8 8 10
Reserves 17 27 32 39 44 50 116 164 178 204 355 802
58 75 93 143 157 395 612 698 721 990 1,607 1,725
2 3 6 7 7 12 18 26 32 39 68 97
Total Liabilities 82 112 137 195 215 465 753 896 940 1,241 2,038 2,635
1 2 2 2 3 3 4 4 4 5 6 8
CWIP -0 -0 -0 -0 -0 -0 -0 -0 -0 0 -0 -0
Investments -0 -0 -0 1 2 3 3 3 3 6 19 7
81 110 136 192 210 459 746 888 933 1,231 2,013 2,620
Total Assets 82 112 137 195 215 465 753 896 940 1,241 2,038 2,635

Cash Flows

Consolidated Figures in Rs. Crores / View Standalone

Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024
-24 -6 7 -1 21 -203 -221 -76 6 -281 -718 -302
0 -2 -1 -7 -2 -12 -1 2 2 -2 -13 18
22 16 -5 1 -9 205 252 94 22 270 681 376
Net Cash Flow -2 8 1 -7 10 -9 30 20 30 -12 -49 92

Ratios

Consolidated Figures in Rs. Crores / View Standalone

Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024
ROE % 16% 16% 17% 19% 13% 14% 29% 28% 6% 16% 33% 30%

Shareholding Pattern

Numbers in percentages

3 Recently
Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
27.45% 27.45% 27.45% 27.39% 27.36% 27.35% 27.31% 27.26% 26.58% 23.65% 22.09% 22.09%
4.99% 4.84% 4.94% 5.14% 5.28% 5.13% 5.04% 4.86% 3.89% 6.64% 10.20% 5.18%
0.00% 0.00% 0.09% 0.47% 0.53% 0.76% 0.76% 0.81% 0.77% 7.66% 6.29% 6.16%
67.55% 67.70% 67.52% 67.00% 66.82% 66.76% 66.89% 67.05% 68.76% 62.05% 61.41% 66.56%
No. of Shareholders 9,56910,0589,80410,11311,13411,05311,19612,18513,75815,68819,74521,676

* The classifications might have changed from Sep'2022 onwards. The new XBRL format added more details from Sep'22 onwards.

Classifications such as banks and foreign portfolio investors were not available earlier. The sudden changes in FII or DII can be because of these changes.

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