Arman Financial Services Ltd

Arman Financial Services Ltd

₹ 2,280 -1.66%
21 Feb 2:01 p.m.
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 170 branches that cater to about 3.73 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]
Mr. Jayendra Patel is the MD & CEO and his son Mr. Aalok Patel has been appointed as joint Managing director wef Aug 2019. [2]

Key Points

Business Segments
Microfinance-
AUM 1,023 Cr in FY22 vs 643 Cr in FY21. [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 8 states, with 236 branches, ~4 lakh live customers. [3]

  • Market Cap 2,231 Cr.
  • Current Price 2,280
  • High / Low 2,680 / 1,189
  • Stock P/E 14.0
  • Book Value 480
  • Dividend Yield 0.00 %
  • ROCE 18.7 %
  • ROE 32.6 %
  • Face Value 10.0

Pros

  • Company is expected to give good quarter
  • Company has delivered good profit growth of 66.7% CAGR over last 5 years
  • Company's median sales growth is 37.5% of last 10 years

Cons

  • Stock is trading at 4.81 times its book value
  • Though the company is reporting repeated profits, it is not paying out dividend
  • Company has low interest coverage ratio.
  • Promoter holding has decreased over last quarter: -2.86%
  • Promoter holding is low: 23.7%
  • Contingent liabilities of Rs.871 Cr.

* 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

Dec 2020 Mar 2021 Jun 2021 Sep 2021 Dec 2021 Mar 2022 Jun 2022 Sep 2022 Dec 2022 Mar 2023 Jun 2023 Sep 2023 Dec 2023
Revenue 47 45 49 50 58 76 79 93 103 149 150 160 169
Interest 17 20 20 20 25 25 29 36 44 63 64 67 71
27 25 23 24 24 29 30 30 29 37 35 34 42
Financing Profit 3 -0 6 7 10 22 20 27 30 49 50 59 56
Financing Margin % 6% -0% 13% 14% 16% 30% 26% 29% 29% 33% 34% 37% 33%
1 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 3 -0 6 7 10 22 20 27 29 49 50 58 55
Tax % 12% 680% 45% 34% 27% 26% 21% 25% 25% 26% 20% 30% 24%
3 1 4 5 7 16 16 20 22 36 40 41 42
EPS in Rs 3.44 1.02 4.21 5.71 8.27 19.17 18.50 23.46 25.88 42.63 47.02 46.86 42.91
Gross NPA % 5.70% 4.10% 3.60% 2.48% 2.83%
Net NPA % 1.40% 0.70% 0.30% 0.23% 0.33%
Raw PDF

Profit & Loss

Consolidated Figures in Rs. Crores / View Standalone

Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 TTM
Revenue 16 17 24 30 41 54 78 139 214 195 235 424 628
Interest 6 6 9 11 16 24 34 59 88 79 89 172 266
5 6 9 9 12 20 34 44 72 103 99 126 148
Financing Profit 5 5 7 9 12 10 10 37 53 13 46 126 214
Financing Margin % 30% 29% 28% 32% 30% 19% 13% 26% 25% 6% 20% 30% 34%
0 0 0 0 0 0 0 0 1 0 -0 0 0
Depreciation 0 0 0 0 0 0 0 0 1 1 1 1 1
Profit before tax 5 5 7 9 12 10 10 36 54 12 46 125 212
Tax % 33% 30% 32% 33% 34% 36% 26% 27% 23% 10% 30% 25%
3 3 5 6 8 6 7 26 42 11 32 94 159
EPS in Rs 5.91 7.92 10.77 13.99 11.05 12.76 45.98 49.13 12.51 37.35 110.46 179.42
Dividend Payout % 11% 14% 15% 13% 12% 11% 9% 4% 0% 0% 0% 0%
Compounded Sales Growth
10 Years: 38%
5 Years: 40%
3 Years: 26%
TTM: 79%
Compounded Profit Growth
10 Years: 40%
5 Years: 67%
3 Years: 31%
TTM: 115%
Stock Price CAGR
10 Years: 62%
5 Years: 45%
3 Years: 55%
1 Year: 62%
Return on Equity
10 Years: 21%
5 Years: 23%
3 Years: 20%
Last Year: 33%

Balance Sheet

Consolidated Figures in Rs. Crores / View Standalone

Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Sep 2023
Equity Capital 4 6 7 7 7 7 7 7 8 8 8 8 9
Reserves 16 17 27 32 39 44 50 116 164 178 204 355 461
Preference Capital 0 0 0 0 5 5 0 0 0 0 0 2
36 58 75 93 138 152 395 612 698 721 990 1,604 1,862
9 2 3 6 12 12 12 18 26 32 39 70 91
Total Liabilities 65 82 112 137 195 215 465 753 896 940 1,241 2,038 2,423
1 1 2 2 2 3 3 4 4 4 5 6 6
CWIP 0 0 0 0 0 0 0 0 0 0 0 0 0
Investments 0 0 0 0 1 2 3 3 3 3 6 19 24
64 81 110 136 192 210 459 746 888 933 1,231 2,013 2,392
Total Assets 65 82 112 137 195 215 465 753 896 940 1,241 2,038 2,423

Cash Flows

Consolidated Figures in Rs. Crores / View Standalone

Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023
4 -24 -6 7 -1 21 -203 -221 -76 6 -281 -718
-0 0 -2 -1 -7 -2 -12 -1 2 2 -2 -13
4 22 16 -5 1 -9 205 252 94 22 270 681
Net Cash Flow 7 -2 8 1 -7 10 -9 30 20 30 -12 -49

Ratios

Consolidated Figures in Rs. Crores / View Standalone

Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023
ROE % 16% 16% 17% 19% 13% 14% 29% 28% 6% 16% 33%

Shareholding Pattern

Numbers in percentages

12 Recently
Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
27.46% 27.46% 27.45% 27.45% 27.45% 27.39% 27.36% 27.35% 27.31% 27.26% 26.58% 23.65%
4.14% 4.63% 4.99% 4.84% 4.94% 5.14% 5.28% 5.13% 5.04% 4.86% 3.89% 6.64%
0.00% 0.00% 0.00% 0.00% 0.09% 0.47% 0.53% 0.76% 0.76% 0.81% 0.77% 7.66%
68.40% 67.90% 67.55% 67.70% 67.52% 67.00% 66.82% 66.76% 66.89% 67.05% 68.76% 62.05%
No. of Shareholders 8,7239,2629,56910,0589,80410,11311,13411,05311,19612,18513,75815,688

* 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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Documents

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