KLM Axiva Finvest Limited

DRHP Status : YES

18

Current Price 18

Market Cap 338.91 Cr

ISIN INE01I501011

Face Value 10

P/E Ratio 14.73

EPS 1.12

P/B Ratio 0.17

Book Value 95.44

Debt to Equity Ratio 3.06

P&L Statement	2021	2022	2023	2024
Interest Earned	124	179	275	306
Other Income	3	6	3	10
Interest Expended	73	104	143	155
Operating Expenses	44	63	110	130
Provisions and contingencies	-1	0.6	1	0.4
PAT	7	11	18	23
eps	1.03	0.96	0.96	1.12
Gross NPA	6.56	0	0	1.6
Net NPA	4.77	2.64	0.78	0.67

Financial Ratios	2021	2022	2023	2024
Advances	733	1058	1445	1705
Book Value	14.27	13.66	13.64	13.26
P / B	1.26	1.32	1.32	1.36
ROE (%)	7.22	7.02	7.07	8.44

Assets	2021	2022	2023	2024
Fixed Assets	33	53	115	124
Cash and Balances	34	324	112	68
Investments	0	0	0	0
Advances	733	1058	1445	1705
Other Assets	24	37	47	63
Total Assets	824	1472	1719	1960

Liabilities	2021	2022	2023	2024
Share Capital	67.9	114.8	186.72	205.4
FV	10	10	10	10
Reserves	29	42	68	67
Borrowings	264	728	886	834
Deposits	0	0	0	0
Other Liabilities	463.1	587.2	578.28	853.6
Total Liabilities	824	1472	1719	1960

Annual Report 2023-2024

Annual Report 2022-2023

Annual Report 2021-2022

Annual Report 2020-2021

Annual Report 2019-2020

Name	Holding
Shibu T Varghese	17.03%
Aleyamma Varghese	5.62%
Other Investors	60.94%
Elen Elu Shibu	4.75%
Biji Shibu	11.66%

KLM Axiva Finvest Limited is a non-deposit-taking, systemically important non-banking finance company (NBFC) focused on serving low and middle-income individuals and businesses, offering services like gold loans, investments, microfinance, and money exchange, with a presence across multiple states in India.

Strengths:

Experienced Management Team: Led by Whole-Time Director Mr. Shibu Varghese, who has over 30 years of experience in financial services, the company benefits from a seasoned leadership team that has been instrumental in its growth since taking over in 2014.
Growth in Assets Under Management (AUM): KLM Axiva Finvest has demonstrated consistent growth in its AUM, increasing by 17% year-on-year to ₹1,705 crore as of March 31, 2024, up from ₹1,460 crore the previous year. This growth is attributed to increased disbursements and branch expansion.
Improving Asset Quality: The company's focus on gold loans, which constituted 65% of its portfolio as of December 31, 2023, has contributed to better asset quality. Gross Non-Performing Assets (GNPA) improved to 1.6% in FY2024 from 1.84% in FY2023, while Net NPA (NNPA) improved to 0.67% from 0.82% during the same period.
Adequate Capitalization: With a capital adequacy ratio of 23.66% and Tier 1 capital of 15.61% as of FY2024, KLM Axiva Finvest maintains levels above regulatory requirements, supporting its growth initiatives.

Weaknesses:

Leveraged Capital Structure: The company's total debt stood at ₹1,606 crore as of March 2024, resulting in a high gearing ratio of 5.91 times. To sustain growth, additional debt or equity infusion may be necessary, which could impact financial stability
Geographical Concentration: Operations are heavily concentrated in Kerala (54% of exposure) and Karnataka (23%) as of December 2023. This regional focus exposes the company to risks associated with economic or political changes in these areas.
Funding Profile Concentration: Approximately 90% of the company's borrowings as of March 2024 are from Non-Convertible Debentures (NCDs) and subordinated debt. While the proportion of bank loans is increasing, the current funding mix may pose liquidity risks.
Moderate Profitability: Despite growth, profitability remains modest, with a Return on Average Assets (ROAA) of 1.25% in FY2024, up from 1.15% in FY2023. Operating expenses to earning assets ratio also increased to 7.66% in FY2024 from 7.45% in FY2023, indicating higher costs during the expansion phase