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Hero Fincorp Limited
DRHP Status : Not Filed
1550
Current Price
1550
Market Cap
23495 Cr
ISIN
INE957N01016
Face Value
10
P/E Ratio
36.88
EPS
50.02
P/B Ratio
4.07
Book Value
454.72
Debt to Equity Ratio
7.38
P&L Statement
| P&L Statement | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Interest Earned | 3877 | 4241 | 5719 | 7479 |
| Other Income | 401 | 497 | 728 | 880 |
| Interest Expended | 1710 | 1678 | 2173 | 3097 |
| Operating Expenses | 1100 | 1498 | 2288 | 2513 |
| Provisions and contingencies | 1417 | 1840 | 1212 | 1722 |
| PAT | 51 | -191 | 479 | 637 |
| eps | 4.02 | -15.04 | 37.62 | 50.16 |
| Gross NPA | 7.4 | 7.9 | 5.37 | 4.02 |
| Net NPA | 4.61 | 4.63 | 2.79 | 2 |
| Financial Ratios | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Advances | 26194 | 31341 | 39871 | 49880 |
| Book Value | 391.1 | 375.35 | 411.85 | 453.94 |
| P / B | 2.94 | 3.06 | 3.04 | 3.91 |
| ROE (%) | 1.03 | -4.01 | 9.14 | 11.05 |
Balance Sheet
| Assets | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Fixed Assets | 93 | 92 | 111 | 181 |
| Cash and Balances | 1222 | 1038 | 790 | 158 |
| Investments | 1917 | 1172 | 1747 | 1896 |
| Advances | 26194 | 31341 | 39871 | 49880 |
| Other Assets | 570 | 756 | 932.31 | 1089 |
| Total Assets | 29996 | 34399 | 43451.31 | 53204 |
| Liabilities | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Share Capital | 127 | 127 | 127.31 | 127 |
| FV | 10 | 10 | 10 | 10 |
| Reserves | 4840 | 4640 | 5116 | 5638 |
| Borrowings | 23391 | 27875 | 33359 | 42544 |
| Deposits | 0 | 0 | 0 | 0 |
| Other Liabilities | 1628 | 1747 | 4849 | 4895 |
| Total Liabilities | 29996 | 34399 | 43451.31 | 53204 |
| Name | Holding |
|---|---|
| Hero MotoCorp Ltd. | 41.19% |
| Bahadur Chand Investment Pvt. Ltd. | 20.34% |
| Otter Limited | 10.12% |
| Others | 28.35% |
Hero Fincorp Ltd. is a non-banking financial company (NBFC) engaged in extending retail finance for the two-wheeler sales of Hero Motor Corp. Ltd, bill discounting for Hero Motor Corp. Ltd’s suppliers, loans to small and medium enterprises, loan against property (LAP), used car financing and personal loans. Moreover, Hero Fincorp Ltd’s subsidiary, Hero Housong Finance Ltd, received a housing finance licence from National Housing Bank (NHB) in August 2017. Hero Fincorp Ltd was incorporated in December 1991 under the name Hero Honda FinLease Limited.
Following a change in the ownership of its parent, Hero MotoCorp Limited (formerly Hero Honda Motors Limited), the company changed its name to Hero Fincorp Limited in July 2011. Until April 2013, Hero Fincorp Ltd extended term loans, machinery loans, and bill discounting facilities primarily to entities within the HMCL ecosystem. It subsequently expanded its operations to entities outside the HMCL ecosystem and started extending loans for Hero Motor Corp. Ltd’s two-wheelers, used cars financing, personal loans, LAP, etc
Key Strengths:
- Strong Brand Association: Hero Fincorp benefits from its association with the Hero Group, a trusted and well-established brand in India.
- Diversified Loan Portfolio: Offers a variety of financial products, including vehicle loans, SME loans, and personal loans, reducing dependency on a single segment.
- Wide Distribution Network: Extensive reach through a strong network of branches and dealerships across India.
- Sound Financial Performance: Consistent revenue growth and profitability with a robust balance sheet.
- Growth Potential: Positioned to capitalize on India's growing demand for credit in the retail and SME sectors.
Key Weaknesses:
- Credit Risk Exposure: As a non-banking financial company (NBFC), it faces credit risk due to potential loan defaults, especially in the SME sector.
- High Competition: Competes with banks and other NBFCs, which could pressure margins and market share.
- Dependence on Borrowing: Relies on borrowing from banks and financial institutions, which could be affected by interest rate fluctuations.
- Economic Sensitivity: Performance is sensitive to economic downturns, which may impact loan repayments and demand.
- Regulatory Risks: Subject to changes in government regulations and policies affecting NBFCs.
+91-9599071664
amit@unlistedkraft.com