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Company Overview
Business Operations: HFCL is involved in various financial services including financing, leasing, bill discounting, and other financial services. It has a wholly-owned subsidiary, Hero Housing Finance Limited (HHFL), which began lending operations in April 2018, offering home loans and loans against property.
Subsidiaries:
- Hero Housing Finance Limited (HHFL): Provides housing loans across India.
Retail and Non-Retail Presence (2020):
- Retail Business: Operates at 938 dealerships, with services available at over 4000 touchpoints across more than 1900 locations.
- Non-Retail Business: Offers loans against property, SME, and emerging corporate business from 50 locations, processing over 800 applications monthly.
Financial Highlights (2019):
- Stakeholding: Hero MotoCorp Limited holds a 41.03% stake.
- Growth: Revenue and net profit grew by 47.85% and 49.01% respectively over the past three years.
- Capital Adequacy Ratio: 19.03%, above the RBI norm of 15%.
- Credit Ratings: AA+ ratings from ICRA and CRISIL.
- Institutional Investors: Credit Suisse (Singapore) Limited holds a 2.58% stake, and ChrysCapital holds a 10.56% stake.
Key Highlights (2020):
- Became India’s No.1 two-wheeler financing company.
- Customer base exceeded 50 lakh across 2000 locations.
- Disbursed loans totaling ₹17,827 crore.
- Assets Under Management (AUM) reached ₹25,182 crore as of 31.03.2020.
- Profit After Tax (PAT) was ₹310 crore, a 16% increase from the previous year.
- Employee strength exceeded 7500.
- Recommended a final dividend of ₹2.55 per equity share.
Financial Performance (FY22-23):
Metric | FY22 | FY23 | Growth |
---|---|---|---|
Net Interest Income | ₹2,563 crore | ₹3,546 crore | 38% |
Other Income | ₹492 crore | ₹680 crore | 38% |
Total Income | ₹3,055 crore | ₹4,226 crore | 38.3% |
Operating Cost | ₹1,374 crore | ₹2,121 crore | 54.3% |
Profit Before Provisioning | ₹1,681 crore | ₹2,105 crore | 25.2% |
Provisioning | ₹1,800 crore | ₹1,200 crore | -33% |
Profit After Provisioning | -₹119 crore | ₹905 crore | Turnaround |
Profit After Tax (PAT) | -₹194 crore | ₹457 crore | Turnaround |
Fundamentals
Parameter | Value | Parameter | Value |
---|---|---|---|
Current Price | ₹ 1825 | Market Cap (in Cr.) | ₹ 23177 |
Debt to Equity | 7.38 | Face Value | 10 |
Book Value | 454 | ROE (%) | 11.05 |
P/B | 4.02 | P/E Ratio | 36.38 |
PAN Number | AAACH0157J | EPS | 50.16 |
ISIN | INE957N01016 | No. Of Shares (in Cr.) | 127 |
Promoters & Managements
Hari Prakash Gupta | MD |
Siddharth Gupta | Joint MD |
Jai Narayan Tiwari | CFO |
Profit & Loss Statement
P&L Statement | 2022 | 2023 |
---|---|---|
Revenue | 91.1 | 45.8 |
Cost of Material Consumed | 41 | 22 |
Gross Margins | 54.95 | 51.11 |
Change in Inventory | 3 | 2 |
Employee Benefit Expenses | 6 | 5 |
Other Expenses | 31 | 13 |
EBITDA | 10 | 3 |
OPM | 10.99 | 6.67 |
Other Income | 0.1 | 0.8 |
Finance Cost | 0 | 0.4 |
D&A | 0 | 0.3 |
EBIT | 10 | 2.7 |
EBIT Margins | 10.99 | 6 |
PBT | 10 | 3 |
PBT Margins | 10.99 | 6.67 |
Tax | 2 | 0.7 |
PAT | 8 | 2.3 |
NPM | 8.79 | 5.11 |
EPS | 266.67 | 71.88 |
Financial Ratios
Financial Ratios | 2022 | 2023 |
---|---|---|
Operating Profit Margin (%) | 10.99 | 6.67 |
Net Profit Margin (%) | 8.79 | 5.11 |
Earnings Per Share (Diluted) | 266.67 | 71.88 |
Assets
Year | 2022 | 2023 | 2024 |
---|---|---|---|
Fixed Assets | 92 | 111 | 181 |
Cash and Balances | 1038 | 790 | 158 |
Investments | 1172 | 1747 | 1896 |
Advances | 31341 | 39871 | 49880 |
Other Assets | 756 | 932.31 | 1089 |
Total Assets | 34399 | 43451.31 | 53204 |
Liabilities
Year | 2022 | 2023 | 2024 |
---|---|---|---|
Share Capital | 127 | 127.31 | 127 |
Face Value (FV) | 10 | 10 | 10 |
Reserves | 4640 | 5116 | 5638 |
Borrowings | 27875 | 33359 | 42544 |
Deposits | 0 | 0 | 0 |
Other Liabilities | 1747 | 4849 | 4895 |
Total Liabilities | 34399 | 43451.31 | 53204 |
Cash Flow Statement
Year | 2022 | 2023 | 2024 |
---|---|---|---|
PBT (%) | -254 | 735 | 960 |
OPBWC | 1621 | 2278 | 3121 |
Term Deposit | 0 | 0 | 0 |
Change in Investment | 0 | 0 | 0 |
Change in Advances | -6987 | -9742 | -11581 |
Change in Deposit | 0 | 0 | 0 |
Other Changes | 62 | 676 | -503 |
Working Capital Change | -6925 | -9066 | -12084 |
Cash Generated From Operations | -5304 | -6788 | -8963 |
Tax | 109 | 227 | 276 |
Cash Flow From Operations | -5413 | -7015 | -9239 |
Purchase of PPE | -23 | -50 | -161 |
Sale of PPE | 5 | 2.71 | 4 |
Purchase of Investment | -18773 | -17641 | -14832 |
Sale of Investments | 19582 | 17163 | 14744 |
Others | 39 | 68 | 115 |
Cash Flow From Investment | 830 | -457.29 | -130 |
Proceeds from Borrowing | 21131 | 24202 | 29256 |
Repayment of Borrowing | -16759 | -19122 | -20410 |
Dividend | -12 | 0 | -103 |
Proceeds from Equity | 2 | 2000 | 0 |
Others From Financing | -14 | 269 | -26 |
Cash Flow From Financing | 4348 | 7349 | 8717 |
Net Cash Generated | -235 | -123.29 | -652 |
Cash at the Start | 1106 | 874 | 750 |
Cash at the End | 871 | 750.71 | 98 |
Share Holding Pattern
Shareholder | 2022 | 2023 |
---|---|---|
Hero MotoCorp Ltd. | 41.19% | 41.19% |
Bahadur Chand Investment Pvt. Ltd. | 20.34% | 20.34% |
Otter Limited | 10.12% | 10.12% |
Others | 28.35% | 28.35% |
Frequently Asked Questions (FAQ)
Find answers to common questions, providing clarity and insights to address any queries on your mind.
Contact Us: Reach out to Unlistify to confirm availability and agree on a price.
Provide KYC: Submit your Client Master Report, PAN card, and a cancelled cheque.
Make Payment: Transfer funds to our designated bank account (RTGS/NEFT/IMPS/cheque). Ensure the payment originates from the same account where you want the shares credited.
Receive Shares: We’ll transfer the Hero Fincorp shares to your Demat account within 24 hours of payment confirmation.
Get a Quote: Unlistify will provide a buyback price for your Hero Fincorp shares.
Share Details: Submit your Client Master Report.
Transfer Shares: Transfer the Hero Fincorp shares to our Demat account using a DIS (Delivery Instruction Slip).
Receive Payment: We’ll transfer funds to your bank account within 24 hours of receiving the shares (RTGS/NEFT/IMPS/cheque). For security reasons, payment will only be made to the account linked to your Demat
DIS (Delivery Instruction Slip): A DIS is a form used to authorize the transfer of shares from your Demat account.
Methods:
Offline DIS: Fill out a physical DIS form with details like the ISIN number, quantity, price of your Hero Fincorp shares, and our account information. Submit this to your broker.
Online DIS: Some brokers offer online DIS systems for easier transfers.
Unlistify aims to make unlisted share investing accessible. The current minimum investment for Hero Fincorp Unlisted Shares is approximately 35,000 – 50,000 INR.
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Price Volatility: Prices can fluctuate more than listed shares due to less publicly available information.
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Latest Funding: We consider the valuation from Hero Fincorp most recent funding round.
Comparable Companies: If there’s no recent funding, we analyze similar listed companies to estimate a fair value.
SEBI’s Influence: SEBI regulations do apply to some aspects of unlisted share trading, such as lock-in periods and transaction charges. However, there are no specific SEBI regulations for becoming an unlisted broker.
We aim for same-day transfer of Hero Fincorp Unlisted Shares to your Demat account after your payment is confirmed.
Tax Transition: Once your unlisted Hero Fincorp shares are listed and sold on an exchange, standard listed share tax rules apply.
Holding Period: Your holding period (for determining long-term vs. short-term capital gains tax) starts from the original unlisted purchase date.