Hero Fincorp Limited - Unlisted Shares
Fundamentals
- Current Price
- ₹1,965
- Market Cap
- ₹1,782.29 Cr
- ISIN
- INE957N01016
- Face Value
- ₹10
- P/E Ratio
- 2.80
- EPS
- ₹49.94
- P/B Ratio
- 0.31
- Book Value
- 453.40
- Debt / Equity Ratio
- 6.20
Key Financials
Profit & Loss
| Metric | FY2024 | FY2023 | FY2022 | FY2021 | FY2020 | FY2019 |
|---|---|---|---|---|---|---|
| Revenue from Operations | 8,290.90 | 6,401.60 | 4,738.66 | 4,278.08 | 3,799.86 | 2,518.47 |
| Growth % | 0 | 50.88% | 12.59% | 10.77% | 35.09% | 29.51% |
| Operating Expenses | 977.84 | 1740.8 | 2516.9 | 3340.0 | 3500.5 | 4235.85 |
| Growth % | 0 | 78.03% | 44.58% | 32.70% | 4.80% | 21.01% |
| Operating Profit | 1,540.63 | 2,059.02 | 1,761.15 | 1,398.69 | 2,901.15 | 4,055.05 |
| Op. Profit Margin % | 61.17% | 54.19% | 41.17% | 29.52% | 45.32% | 48.91% |
| Other Income | 0 | 55.32 | 55.44 | 59 | 46 | 68.82 |
| Finance Costs | 1,124.71 | 1,629.22 | 1,710.31 | 1,678.53 | 2,173.95 | 3,097.36 |
| Depreciation | 24.88 | 36.33 | 35.21 | 33.19 | 37.93 | 65.96 |
| Profit Before Tax | 391.04 | 448.79 | 71.07 | -254.03 | 735.22 | 960.55 |
| Tax | 145.3 | 170.8 | 19.5 | -62.1 | 255.3 | 323.5 |
| Tax % | 5.77% | 4.49% | 0.45% | -1.31% | 3.99% | 3.90% |
| Profit After Tax | 245.75 | 278.03 | 51.6 | -191.9 | 479.95 | 637.05 |
| Growth % | 0 | 13.14% | -81.43% | -471.76% | -350.10% | 32.73% |
| PAT % | 9.76% | 7.32% | 1.21% | -4.05% | 7.50% | 7.68% |
| Diluted EPS | 23.73 | 24.01 | 4.22 | -15.07 | 37.67 | 49.94 |
Company Financials
| Metric | FY2024 | FY2023 | FY2022 | FY2021 | FY2020 | FY2019 |
|---|---|---|---|---|---|---|
| Equity Capital | 127.3 | 127.3 | 127.3 | 127.3 | 121.5 | 114.2 |
| Reserves | 3,527.7 | 4,349.8 | 4,840.5 | 4,642.7 | 5,120.5 | 5,644.7 |
| Total Equity | 3,641.9 | 4,471.3 | 4,967.8 | 4,770.0 | 5,247.83 | 5,772.03 |
| Borrowings | 0 | 0 | 0 | 0 | 0 | 0 |
| Provision | 24.1 | 34.3 | 41.7 | 48.1 | 54.9 | 69.9 |
| Other Non-Current Liabilities | 67.38 | 102.4 | 53.6 | 65.4 | 67.0 | 115.7 |
| Total Non Financial Liabilities | 91.4 | 136.7 | 95.3 | 113.4 | 121.9 | 185.6 |
| Borrowings | 9,344.7 | 16,130.8 | 19,156.5 | 22,008.7 | 26,613.0 | 35,840.4 |
| Other Current Liabilities | 7,990.8 | 6,460.3 | 5,776.5 | 7,507.0 | 11,468.5 | 11,406.7 |
| Total Financial Liabilities | 17,335.4 | 22,591.1 | 24,933.0 | 29,515.7 | 38,081.5 | 47,247.1 |
| Equity + Liabilities | 21,068.73 | 27,199.13 | 29,996.03 | 34,399.05 | 43,451.2 | 53,204.66 |
| Fixed Assets (incl. WIP) | 103.8 | 148.53 | 116.36 | 114.79 | 135.05 | 327.19 |
| Other Non Current Assets | 218.6 | 323.6 | 423.7 | 617.1 | 599.3 | 612.5 |
| Total Non Financial Assets | 322.4 | 472.1 | 540.01 | 731.9 | 734.4 | 939.7 |
| Trade Receivables | 4.3 | 7.9 | 8.0 | 2.1 | 1.3 | 4.9 |
| Cash & Cash Equivalents | 107.23 | 2,344.5 | 1,223.0 | 1,039.0 | 791.4 | 157.85 |
| Other Current Assets | 20,634.8 | 24,374.7 | 28,225.0 | 32,626.0 | 41,924.2 | 52,102.2 |
| Total Financial Assets | 20,746.4 | 26,727.0 | 29,456.0 | 33,667.2 | 42,716.9 | 52,264.9 |
| Total Assets | 21,068.7 | 27,199.13 | 29,996.03 | 34,399.05 | 43,451.2 | 53,204.66 |
Shareholding Pattern
- "Hero Motocorp Limited"
- 41.19%%
- Bahadur chand investments pvt ltd
- 20.34%%
- Brijmohan lal Om Parkash (partnership Firm)
- 9.52%%
- Hero Investcorp pvt ltd
- 2.7%%
- Munjal Acme packaging systems pvt ltd
- 1.51%%
- others
- 24.74%%
Strengths & Weaknesses
Strengths
- Strong Parentage and Strategic Importance: Backed by the Hero BML Group, with Hero MotoCorp Limited (HMCL) holding a 41.2% stake as of December 2023. Key player in the financial services arm of the Hero Group, benefiting from branding, distribution, and management synergies.
- Adequate Capitalisation: Regular equity infusions by promoters and investors (₹6,080 crore in the last 11 years). Consolidated gearing of 5.0x and standalone CRAR of 16.7% as of December 2023.
- Improving Asset Quality: Consolidated gross and net stage 3 ratios reduced to 4.7% and 2.3% as of December 2023.Improved collection efficiency at pre-COVID-19 levels (~96%). (Please note: In case of IndAS reporting, Gross Stage 3 and Net Stage 3 Assets are considered instead of Gross NPA and Net NPA amounts.)
Weaknesses
- Exposure to Regulatory Risks: Changes in RBI guidelines, such as increased risk weights for consumer credit, directly impact capital and profitability metrics.
- Dependence on Hero Ecosystem: Significant linkage to Hero MotoCorp's sales could pose risks if the parent company or the ecosystem faces challenges.
About Hero Fincorp Limited
Hero Fincorp Limited (HFL) was formerly known as Hero Honda Finlease Limited. As per its credit rating report, it is a Non-Banking Financial Company (NBFC) engaged in extending retail finance for two-wheeler sales of HMCL, bill discounting for HMCL's suppliers, loans to small and medium enterprises, and loan against property (LAP).
Board of Directors
- pawan munjal - chairman & director
- renu munjal - non executive director
- abhimanu munjal - non executive director
- pradeep dinodia - non executive director
- paramdeep singh - non executive director
- sanjay kukreja - non executive director
- amar raja singh bindra - non executive director
- anuranjita kumar - non executive director
Senior Management
- Mr Abhimanyu Munjal - Managing Director & CEO
- Mr Sajin Mangalathu - CFO
- Mr Shivendra Suman - Company Secretary