Tag NBFC

Shriram Finance Ltd
Shriram Finance Ltd: Growth, Market Insights, and Future Potential in India’s NBFC Sector

Business and Industry Overview:  

Shriram Finance Ltd is a large financial company in India. It is part of the Shriram Group, which started in 1974 in Chennai. The group first worked with chit funds and later expanded into loans and insurance. In 2022, Shriram Finance was created by merging three companies—Shriram City Union Finance, Shriram Capital, and Shriram Transport Finance. Shriram Finance gives loans for trucks, buses, cars, two-wheelers, gold, and small businesses. Many people in small towns and villages find it hard to get loans from big banks. Shriram Finance helps these people by making loans easier for them. The Shriram Group also runs insurance businesses. Shriram Life Insurance provides life insurance. Shriram General Insurance covers vehicles, homes, and travel. The group also helps people invest money. Shriram AMC manages mutual funds. Shriram Insight is a stockbroking company. Shriram Wealth gives advice on managing money. The group also works in real estate. Shriram Properties builds homes, mainly in South India. Shriram Automall is a platform where people can buy and sell used vehicles. Shriram Group focuses on helping common people and small business owners. It provides loans, insurance, and other financial services in both cities and villages. It makes money matters simple and easy for people who cannot get help from big banks. 

The financial services industry in India is growing fast. It includes banks, non-banking financial companies (NBFCs), insurance companies, stock markets, and asset management firms. This industry helps people and businesses manage money, get loans, invest, and protect their assets. The NBFC sector in India has grown a lot. It is now an important part of the financial system. Over time, this sector has changed. Housing finance, microfinance, and consumer finance have helped it grow. Many factors support this growth. The middle class is growing, more people have access to financial services, and government policies are helpful. NBFCs help people who cannot get loans from banks. Many small business owners and people in villages depend on NBFCs. More people now take loans for vehicles, gold, and businesses. 

Shriram Finance is a large financial company in India. It helps people get loans who may not be able to get them from banks. It is especially known for giving loans to buy vehicles like trucks, buses, and cars. Many small business owners and truck drivers depend on Shriram Finance for loans. The company also gives loans for gold, two-wheelers, and small businesses. It has many branches across India, especially in small towns and villages. This makes it different from big banks, which focus more on cities. Shriram Finance understands the needs of people who live in rural areas and smaller towns. This helps them offer loans that are easier to get. The company uses technology to check if people can pay back the loans. This helps reduce the risk of not getting paid back. Even though it faces competition from banks and other companies, Shriram Finance stays strong. It has built trust with its customers. People rely on the company for loans and other financial services. Shriram Finance is always growing. It uses digital tools to make the loan process faster and easier. The company also offers more types of financial products, which help it attract more customers. 

Latest Stock News: 

As of April 1, 2025, Shriram Finance is in the spotlight for its impressive growth plans. The company aims to grow its assets to over ₹3 lakh crore by the financial year 2025-2026. They plan to increase their loans by 15%, which is much higher than India’s expected 6.5% GDP growth. This shows they expect to grow faster than the country’s economy. 

Analysts are optimistic about Shriram Finance. They are happy with the company’s 15% Return on Equity (ROE) and 15% growth in Earnings Per Share (EPS). These numbers show that the company is doing well and making good profits. Some experts believe the company’s stock might go up in value, or be re-rated, as more people see its potential. 

Even though Shriram Finance reported a 96% increase in its net profit for Q3 FY25, the stock price fell by 2.6%. This drop might seem confusing since the company made huge profits. However, stock prices don’t always rise after good news. Other factors, like market conditions, can cause a price drop even after good earnings. 

In January 2025, Shriram Finance also did a stock split. This means they split their shares into more, making them cheaper. After the split, the stock price went up by 3%. This was a positive reaction from the market, as stock splits can make shares more affordable for small investors. 

To sum up, Shriram Finance is growing fast with big plans and strong profits. They are expanding their loan business and focusing on new areas like green financing, especially electric vehicles. Despite some stock price changes, the company is seen as a strong player in the market with a lot of growth potential. 

Potentials: 

Shriram Finance has clear and exciting plans for the future. The company aims to grow its total assets to over ₹3 lakh crore by the financial year 2025-2026. This is a big target, showing that the company wants to grow quickly. They also plan to increase their loans by 15%, which is more than double the expected growth of the economy. This means they want to do better than the country’s overall growth rate. One key area Shriram Finance is focusing on is small and medium-sized businesses (MSMEs). These businesses are important for India’s economy, but they often struggle to get loans. Shriram Finance wants to help by providing more financial support to these businesses, helping them grow and succeed. Another big focus for Shriram Finance is green initiatives. The company wants to help the environment by supporting electric vehicles (EVs). It plans to offer loans to people who want to buy electric vehicles. This will not only help reduce pollution but also support the shift to cleaner energy in the transport sector. Shriram Finance is also working on becoming more digital. The company wants to make it easier for people to apply for loans online. This will save time for customers and make the process more convenient. They are also using data to make better decisions and improve their services. By using technology, Shriram Finance hopes to serve more customers and be more efficient. Lastly, Shriram Finance plans to partner with other businesses to expand its reach. These partnerships will help the company offer its services to more people, including those in remote areas. In conclusion, Shriram Finance’s future plans include helping small businesses, supporting electric vehicles, becoming more digital, and partnering with other companies. These plans will help the company grow and stay ahead in the competitive financial market.  

Analyst Insights: 

  • Market capitalisation: ₹ 1,19,892 Cr. 
  • Current Price:₹ 637 
  • 52-Week High/Low: ₹ 730 / 439 
  • P/E Ratio: 14.8 
  • Dividend Yield: 1.41% 
  • Return on Capital Employed (ROCE): 11.3% 
  • Return on Equity (ROE): 15.9%

Shriram Finance Ltd (STFC) has been growing well. Its revenue and profit have been increasing every year. The company makes good money from its business, shown by a return on equity (ROE) of 15.9%. This means it uses its money wisely to earn profits. 

The company’s stock price is not too high compared to others, making it a good option for investors. It also pays a dividend of 1.41%, which means investors get some money back from their investment. The company’s profit from financing has also grown, showing that its main business is doing well. 

The company has more assets now, which shows it is expanding. It does have some debt, but it makes enough money to handle it. Shriram Finance focuses on lending for used commercial vehicles and two-wheelers, which helps it stand out in the market. 

Even though there are some risks, the company is growing and making profits. It is a good option for investors who want to hold stocks for the long term. 

Jio Financial Services Ltd
Jio Financial Services (JFSL) Stock Update: 10.8 Lakh Equity Block Deal – Time to BUY or SELL?

Business and Industry Overview: 

Jio Financial Services Ltd. (JFSL) is a company in India that helps people with money. It was part of Reliance Industries but became its own company in August 2023. JFSL helps people get loans, save money, invest, and pay bills using the JioFinance app. 

The company started in 1999 with the name Reliance Strategic Investments Private Limited. In 2002, the name changed to Reliance Strategic Investments Limited. In July 2023, after leaving Reliance Industries, it became Jio Financial Services Ltd. It is listed on the stock market and follows the rules of the Reserve Bank of India. 

JFSL is an NBFC (Non-Banking Financial Company). This means it does not take deposits but still gives financial services. JFSL uses technology to make banking and money matters simple for everyone in India. It is a Core Investment Company (CIC). It has a joint venture with the State Bank of India called Jio Payments Bank Limited. It runs other companies like Jio Finance Ltd., Jio Insurance Broking Ltd., Jio Payment Solutions Ltd., Jio Leasing Services Ltd., Jio Finance Platform and Service Ltd., and Jio Payments Bank Ltd. JFSL also works with BlackRock, the world’s biggest company that helps people invest and manage money in India. 

Jio Financial Services Ltd is an Indian financial services company based in Mumbai. Originally a subsidiary of Reliance Industries, it was demerged as an independent entity and listed on the Indian stock exchanges in August 2023.  Jio Financial Services Ltd. (JFSL) is a new-age institution providing full-stack financial services to customers, enabling them to borrow, transact, save, and invest seamlessly. Its digital-first model aims to ensure the holistic financial well-being of Indian citizens. 

Non-Banking Financial Companies (NBFCs) have witnessed significant growth in India’s financial ecosystem, playing a crucial role in credit expansion and financial inclusion. Their market share in credit distribution increased from 12% in 2008 to 18% in 2019, before slightly declining to 16% in 2022 due to increased competition from banks. JFSL is a leader in India’s microfinance landscape.  

Latest Stock News: 

Jio Financial Services Ltd. (JFSL) is a company in India that helps people with money. Its stock price has been falling. In six months, it dropped 31%, and in one month, it fell 12%. On Friday, the stock hit its lowest price of ₹212.50 in the last year. A big deal of 10.8 lakh shares happened, but no details were given. This happened before JFSL joins the Nifty 50 index on March 28. Even with falling stock prices, JFSL is bringing new technology. It is using AI to help people with money decisions and blockchain to make transactions safe and clear. JFSL wants to help both city and village people, including 190 million adults without bank accounts. It uses Reliance Jio’s network to make digital banking easy. Experts say India’s fintech market will grow 15-20% every year. This growth will help JFSL succeed in making financial services simple and available to everyone. 

Potentials: 

JFSL will start offering life and general insurance. It plans to get approval from the Insurance Regulatory and Development Authority of India (IRDAI) and will invest ₹1,000 crore in each type of insurance. It has joined with BlackRock to start a mutual fund business, and the Securities and Exchange Board of India (SEBI) has given early approval. JFSL is talking with BlackRock to create a private credit business, which will give loans to big companies and small startups. It may also partner with Germany’s Allianz SE to start insurance businesses in India. JFSL wants to use AI and blockchain to make financial services easy, safe, and helpful for everyone, including people in villages. India’s financial market is growing 15-20% every year, and JFSL plans to use this growth to expand its services. 

JFSL will start offering life and general insurance. It plans to get approval from the Insurance Regulatory and Development Authority of India (IRDAI) and will invest ₹1,000 crore in each type of insurance. It has joined with BlackRock to start a mutual fund business, and the Securities and Exchange Board of India (SEBI) has given early approval. JFSL is talking with BlackRock to create a private credit business, which will give loans to big companies and small startups. It may also partner with Germany’s Allianz SE to start insurance businesses in India. JFSL wants to use AI and blockchain to make financial services easy, safe, and helpful for everyone, including people in villages. India’s financial market is growing 15-20% every year, and JFSL plans to use this growth to expand its services. 

Analyst Insights: 

  • Market capitalisation: ₹ 1,31,901 Cr. 
  • Current Price: ₹ 208 
  • 52-Week High/Low ₹ 395 / 207 
  • P/E Ratio: 82.1 
  • Dividend Yield: 0.00 % 
  • Return on Capital Employed (ROCE): 1.55 % 
  • Return on Equity (ROE): 1.27 % 

Jio Financial Services is almost debt-free and has improved its working capital needs from 1,832 days to just 20.6 days, showing better efficiency. The stock is trading at 0.96 times its book value, meaning it is close to its actual worth. However, its P/E ratio of 82.1 is very high, making it expensive compared to earnings. The company is making profits but does not pay dividends, which may not be good for investors looking for regular income. The ROCE (1.55%) and ROE (1.27%) are low, showing weak returns. The stock has fallen a lot from its 52-week high of ₹395 and is now close to its low of ₹207. Because of these reasons, it is not a good time to buy, but also not the right time to sell. Investors should hold the stock and wait for better earnings or a lower price before deciding. 

CreditAccess Grameen Ltd
CreditAccess Grameen Stock Analysis: Strong Jumps 19% After RBI Rule Change

Business and Industry Overview:  

CreditAccess Grameen gives small loans to women in villages to help them start or grow businesses. It has 2,059 branches in 422 districts across 16 states and 1 union territory in India. Its parent company, CreditAccess India B.V., has been helping small businesses for over 10 years. It is the biggest microfinance company in India, giving₹26,700 crore in loans in FY24, up from ₹16,500 crore in FY22. It has 49 lakh customers, and 84% live in villages. Most loans (93%) are for businesses, 4% for home improvements, and 3% for shops. The company is better at getting money back, reducing unpaid loans (GNPA from 3.6% in FY22 to 1.18% in FY24 and NNPA from 0.94% to 0.35%). It makes more profit (NIM grew from 11% to 13%). It opened more branches, from 1,600 in FY22 to 1,960 in FY24, with many in Karnataka (17%), Maharashtra (15%), Tamil Nadu (20%), and Madhya Pradesh (8%). The top 10 districts give 17% of total loans. It started new loans for businesses, homes, gold, and two-wheelers. It uses better technology to make banking fast and easy. The government first asked for ₹2,333 crore in tax, but the court reduced it to ₹122.63 crore. The company plans to grow loans by 23%-24% in FY25 and 20%-25% every year until FY28 while keeping good profits. 

NBFCs are companies that give loans and other money services to people and businesses, especially those who cannot easily get loans from banks. They have grown a lot and now give home loans, business loans, and personal loans. This growth is because more people need money, the government is helping, and technology is making things easier. NBFCs use mobile apps and websites to give loans quickly and work with banks and other companies to help more people. But they also have problems like strict rules, money risks, and online safety issues. Even with these challenges, NBFCs will keep growing and helping more people and businesses in India. Non-Banking Financial Companies (NBFCs) have witnessed significant growth in India’s financial ecosystem, playing a crucial role in credit expansion and financial inclusion. CreditAccess Grameen holds a 6% market share in the overall microfinance industry. Market Cap ₹ 15,591 Cr. 

Latest Stock News: 

The stock price of CreditAccess Grameen and other finance companies went up after the Reserve Bank of India (RBI) made a new rule. Before, banks had to keep extra money aside when giving loans to finance companies (NBFCs), but now they don’t have to keep as much. This will help NBFCs get money more easily and at lower costs. Because of this, stocks of CreditAccess Grameen, Five-Star Business Finance, and L&T Finance went up by 15%. This will help companies like Bajaj Finance, Shriram Finance, and Mahindra Finance borrow money at cheaper rates and make more profit. Big finance firms like Morgan Stanley and Nomura say this change will help NBFCs grow, make investors happy, and bring more money into the microfinance industry. 

Potentials: 

In the next five years, CreditAccess Grameen wants to grow bigger and give more loans. It plans to grow 20-25% every year and reach Rs 50,000 crore in total loans. The company sees many chances to grow, especially in villages. Even though borrowing money has become more expensive, CreditAccess Grameen has kept its costs low, which is a big success. It gives loans to small workers, not big farmers, so farm loan waivers do not affect it. The government and RBI support small loans, which helps the company grow even more. 

Analyst Insights: 

Market capitalisation: ₹ 15,455 Cr. 
Current Price: ₹ 968 
52-Week High/Low:₹ 1,553 / 750 
P/E Ratio: 17.5 
Dividend Yield: 0.96 % 
Return on Capital Employed (ROCE): 14.8 % 
Return on Equity (ROE): 24.8 % 

CreditAccess Grameen is a big company that gives small loans to people, mostly in villages. The company is growing well, making more money every year. It is worth ₹15,455 Cr, and the stock price is ₹968. In the last five years, its profits grew 35% every year, and its sales grew 31.6% over the last 10 years. This shows the company is doing well. But there are some risks. The company has to pay interest on its loans, and right now, it does not have a lot of extra money to cover those payments if costs go up. Also, the people who started the company (promoters) own less of it now than they did three years ago, which may worry some investors. The stock is not too expensive compared to how much the company earns (P/E ratio is 17.5). It also uses its money well, with returns of 14.8% on capital and 24.8% on equity. The company pays a small dividend (0.96%), which means it mostly keeps its money to grow. Overall, the company is strong and growing, but investors should watch its debt and promoter holdings. Right now, it may be best to hold the stock and see how it performs in the future. 

Muthoot Finance Ltd.
Muthoot Finance Q3 Results: Net Profit Surges 22% to ₹1,392 Crore and Growth & Market Insights

Business and Industry Overview: 

Muthoot Finance Limited is India’s largest gold loan non-banking financial corporation. It offers services like financing gold loans, insurance, housing loans, SME loans, and money transfer services. It is a gold financing company that provides loans against gold jewellery as collateral. The company is headquartered in Kochi, Kerala, and has over 5000 branches throughout the country. Outside India, Muthoot Finance is established in the UK, the US, and the United Arab Emirates. The company falls under the brand umbrella of the Muthoot Group. Its stocks have been listed on the BSE and NSE since its initial public offering in 2011. The target market of Muthoot Finance includes small businesses, vendors, farmers, traders, SME business owners, and salaried individuals.

Non-Banking Financial Companies (NBFCs) have witnessed significant growth in India’s financial ecosystem, playing a crucial role in credit expansion and financial inclusion. Their market share in credit distribution increased from 12% in 2008 to 18% in 2019, before slightly declining to 16% in 2022 due to increased competition from banks. Muthoot Finance is a leader in the microfinance landscape in India.  

Latest Stock News: 

Muthoot Finance reported a net profit of ₹1,363 crore for the third quarter of FY25, reflecting a growth of 32.7% compared to ₹1,027.3 crore during the same period last year. Following the announcement of these strong Q3 results, Muthoot Finance’s share price surged over 5% in early trading on 13 February 2025. The shares rallied by as much as 6.45%, reaching a fresh 52-week high of ₹2,321.80 on the BSE. 

The company’s significant net profit growth was driven by robust loan growth and margin expansion. Additionally, Muthoot Finance reported its highest-ever consolidated loan assets under management (AUM) at ₹1.11 lakh crore as of December 31, 2024. During the quarter, the consolidated loan AUM increased by ₹7,159 crore, representing a 7% quarter-on-quarter growth. 

Segmental information

  • Gold loans: It offers gold loans at low interest rates to its customers. 
  • Housing finance: It offers housing finance options to its customers.  
  • Personal loans: It offers personal loans. 
  • Wealth management: It offers wealth management solutions. 
  • Money transfer: It offers money transfer services. 
  • Insurance broking: It offers insurance broking services. 
  • Microfinance: It offers microfinance services. 

Subsidiary Information:

Muthoot Money Ltd. (MML) became a wholly owned subsidiary of Muthoot Finance Ltd. in October 2018. MML is a Reserve Bank of India (RBI) registered Non-Banking Finance Company primarily engaged in providing gold loans. 

Muthoot India Brokers Pvt Ltd (MIBPL) also became a wholly owned subsidiary of Muthoot Finance Ltd in September 2016. MIBPL is an unlisted private limited company that has held a Direct Broker license from the Insurance Regulatory and Development Authority (IRDA) since 2013. 

Asia Asset Finance PLC (AAF) in Colombo, Sri Lanka, became a foreign subsidiary of Muthoot Finance on December 31, 2014. As of December 31, 2024, Muthoot Finance holds 91 million equity shares in AAF, representing 72.92% of the company’s total capital. The loan portfolio stands at LKR 28,404 million as of December 31, 2024. 

Muthoot Homefin (India) Limited is a Housing Finance Company registered with the National Housing Bank (NHB). It became a wholly owned subsidiary of Muthoot Finance Ltd. in August 2017.  

Q3 Highlights

  • Muthoot Finance reported a 32.7% YoY increase in Q3 FY25 net profit to ₹1,363 crore. 
  • Following the results, the stock surged over 5%, reaching a 52-week high of ₹2,321.80. 
  • The company’s loan AUM hit ₹1.11 lakh crore, its highest-ever level. 
  • The loan AUM grew by ₹7,159 crore (7% QoQ) in Q3 FY25. 

Financial Summary:  

Amount in ₹ Cr Q3 FY24 Q3 FY25 FY23 FY24 
Revenue 3,168.00 4,423.00 10,515 12,635 
Expenses 566.00 913 2,110 2,513 
EBITDA 1,390 1,863.00 4,696.00 5,455.00 
OPM 44% 42% 45% 45% 
Other Income 8 8 29 59 
Net Profit 1,027.00 1,363.00 3,474 3,474 
NPM 32.42 30.82 33.04 27.50 
EPS 25.59 33.95 86.52 100.87 
Tata Investment Corporation ltd
Tata Investment Corporation Q3 Results: Net Income Falls to ₹196.1 Million, Profit Declined

Business and Industry Overview: 

The Tata Investment Corporation Limited (TICL) is a non-banking financial company (NBFC) which is mainly engaged in long-term investments in various industries. East known as India’s Investment Corporation, the company invests in equity shares, loan equipment and equity-related securities, both listed and unlisted. The TICL was promoted by Tata Sons Private. Limited in 1937 and a closely held unit until 1959 remained one of the publicly listed investment companies on the Bombay Stock Exchange. Initially focused on supporting new enterprises, the TICL gradually turned into an investment company with a diverse portfolio. For decades, it has played an important role in the development of many famous Indian companies including SKF Bairing (India) Limited, Ceat Ltd., and National Ryan Corporation. The TICL is currently a subsidiary of Tata Sons, with other TATA companies, 73.38% of its paid capital. The company’s leadership of Noel Tata and F.N. As Vice Chairman is supported by a team of subdaras, financial and investment experts. Non-Banking Financial Companies (NBFCs) have seen significant growth in India’s financial ecosystem, which play an important role in credit expansion and financial inclusion. Their market share in credit distribution increased from 12% in 2008 to 18% in 2019, before 2022 increased competition from banks to 16%. And TICL is one of the famous NBFCs, which has played an important, important role in financing new businesses. 

Latest Stock News: 

The Tata Investment Corporation Limited (TICL) recorded a sharp decline in financial performance for the Q3 FY25, with the revenue fell from ₹ 43.76 million to ₹ 31.68 million a year ago. Per share (EPS) per share from ₹ 10.52 to ₹ 3.88 per share. For nine months, the revenue decreased from ₹ 3,284.9 million to ₹ 2,896.1 million, while net income fell from ₹ 2,743.7 million to ₹ 3,244.9 million, decreased from ₹ 64.13 to ₹ 54.23 with EPS to ₹ 64.13 to ₹ 54.23 with EPS. , Which indicates recession in earnings and revenue. 

Segmental information: 

Equity Investment: TICL mainly invests in a diverse portfolio of equity shares and securities of companies listed and unlisted in various industries including TATA group companies.  

Loans and definite-income investment: The company also invests in loan equipment, including bonds and other certain-oriented securities, providing a stable stream of interest income.  

Dividend and interest income: A important part of TICL’s revenue comes from dividends and interest earned on its investment, ensuring stable returns over time.  

Asset Management: TICL is a co-consent of Tata Asset Management Private Limited, who manages mutual funds and investment portfolio for institutional and retail investors. 

Subsidiary Investments: 

  1. Simto Investment Company Limited (Assistant) – TICL increased its investment portfolio by Simto Investment Company Ltd. It has a majority stake in. 
  1. Tata Asset Management Private Limited (Associate Company)-TICL is a co-commotor of Tata Asset Management, which manages Tata Mutual Fund and provides investment management services.  
  1. Tata Trustee Company Private Limited (Associate Company) – This unit oversees the Tata Mutual Fund schemes, which ensure governance and compliance in property management.  
  1. AMALGAMATED Plantation Private Limited (Associate Company) – TICL has an investment in tea plantation company, the largest in India, which supports its diverse portfolio. 

Q3 Highlights: 

  • Revenue is recorded as ₹38 million, down from ₹516.2 million in Q3 FY24. 
  • Net income is reported as ₹196.1 million, down from ₹532.4 million a year ago. 
  • EPS is ₹3.88, compared to ₹10.52 in the previous year. 

Financial Summary: 

Amount in ₹ Cr Q3 FY24 Q3 FY25 FY23 FY24 
Revenue 31.68 43.76 277 325 
Expenses 6.29 9 32 33 
EBITDA 25.39 34.76 245.00 292.00 
OPM 87% -19% 88% 91% 
Other Income 17 26 36 65 
Net Profit 24.08 34.33 252 284 
NPM 76.01 78.45 90.97 87.27 
EPS 10.52 3.88 49.78 76.09 
Sundaram Finance Q3 Results
Sundaram Finance Q3 Results: 16% PAT Growth, ₹349 Cr Profit, 140% Dividend Declared, AUM Surges 19%

Sundaram Finance Ltd: Overview 

Sundaram Finance Ltd (SFL) is one of India’s leading non-banking financial companies (NBFCs), specializing in vehicle financing, housing finance, asset management, and general insurance. Established in 1954, the company has built a strong reputation for trust and financial stability, offering a diversified portfolio of financial services. With a robust presence across India, SFL primarily focuses on financing commercial vehicles, passenger cars, construction equipment, and tractors. The company has also expanded into home loans, mutual funds, and insurance through its subsidiaries, ensuring a comprehensive financial ecosystem for its customers. SFL’s business model revolves around prudent lending practices, customer-centric policies, and efficient risk management. The company has successfully navigated economic cycles while maintaining consistent growth in its assets under management (AUM). Its well-capitalized balance sheet, disciplined underwriting, and strategic expansion into rural and semi-urban areas have helped SFL maintain a strong foothold in India’s financial sector. The Indian non-banking financial company (NBFC) sector is poised for steady growth, driven by increasing vehicle ownership, rising infrastructure investments, and a growing demand for housing finance. The NBFC segment plays a crucial role in providing credit to sectors underserved by traditional banks, including small businesses and rural borrowers. With India’s economy expected to expand steadily, demand for vehicle and equipment financing is anticipated to grow, benefiting players like Sundaram Finance. However, challenges such as regulatory changes, interest rate fluctuations, and competition from fintech companies could impact growth in the NBFC space. Despite these challenges, well-managed companies with strong balance sheets and diversified portfolios, such as SFL, are well-positioned to capitalize on growth opportunities. 

Latest Stock News 

The total Assets Under Management (AUM) saw a 19% increase, reaching ₹50,199 crore. On a consolidated basis, the AUM stood at ₹75,708 crore as of December 2024, compared to ₹63,658 crore in December 2023. The Company’s gross stage 3 assets, which include loans overdue for more than 90 days, were recorded at 1.70% as of December 2024, slightly improving from 1.77% in December 2023. Net Stage 3 assets also showed an improvement, declining to 0.97% from 1.02% during the same period. The company announced key leadership appointments and reappointments. Mr. Mukund Raghavan was appointed as the Chief Risk Officer for a three-year term effective from November 15, 2024, replacing Mr. N. Raman, who is set to retire on November 14, 2024. Additionally, Mr. V. Vaasen was reappointed as the Head of Internal Audit for another three-year term starting March 1, 2025. Further strengthening its leadership team, the company appointed Mr. Ajit Narasimhan as Head of Strategy & Planning effective October 1, 2024, and Mrs. Bama Balakrishnan as Senior Vice President – Finance from October 7, 2024 

Business Segments

  • Vehicle Finance: This segment is the company’s largest division, offering loans for commercial vehicles, passenger cars, two-wheelers, and construction equipment. It maintains a strong market presence, catering to retail and fleet operators. 
  • Housing Finance: This division is a subsidiary Sundaram Home Finance, provides home loans and mortgage-backed products, focusing on affordable housing and mid-segment home buyers. 
  • Asset Management: This segment is managed through Sundaram Asset Management Company, which handles mutual fund investments, catering to both retail and institutional investors, with a strong focus on equity and debt funds. 
  • General Insurance: This segment operates through Royal Sundaram General Insurance, offering motor, health, and commercial insurance products, ensuring a diversified financial portfolio. 

Subsidiary Information: 

  • Sundaram Home Finance Ltd: Sundaram Home Finance Ltd. is the housing finance subsidiary of Sundaram Finance, focusing on providing affordable housing loans and loan products for residential properties. The company caters to salaried and self-employed individuals, helping them purchase, construct, or renovate homes. It operates across various Indian cities, supporting the government’s push toward affordable housing through competitive interest rates and flexible loan structures. With a growing home loan portfolio, Sundaram Home Finance has been instrumental in expanding Sundaram Finance’s footprint in the real estate finance segment, leveraging its parent company’s strong credibility and customer-centric approach. 
  • Sundaram Asset Management Company Ltd: Sundaram Asset Management Company Ltd. is a leading player in the mutual fund industry, managing a diversified portfolio of equity, debt, and hybrid funds. It caters to retail investors, corporates, and institutional clients, offering financial solutions that align with varying risk appetites. The company has a strong reputation in equity-oriented schemes and has consistently delivered value through its research-driven investment strategy. With increasing investor participation in capital markets, Sundaram Asset Management continues to expand its offerings, embracing digital transformation to enhance customer experience and operational efficiency. 
  • Royal Sundaram General Insurance Co. Ltd: Royal Sundaram General Insurance is a key subsidiary offering a broad range of insurance products, including motor, health, fire, marine, and commercial insurance. As one of India’s premier private general insurers, the company has a strong presence in retail and corporate segments. It has built a vast distribution network and developed innovative insurance solutions to cater to evolving customer needs. The company’s robust underwriting expertise and a strong claims settlement record position it as a leading player in the general insurance industry. Sundaram Finance’s backing has helped Royal Sundaram scale its operations and enhance financial inclusion through customized products and digital initiatives. 
  • Sundaram Finance Holdings Ltd: Sundaram Finance Holdings Ltd. is the investment arm of Sundaram Finance, specializing in strategic investments across the auto components and financial services sectors. It holds key stakes in various businesses, helping Sundaram Finance expand its market influence while ensuring capital appreciation through long-term investment strategies. The company also supports the parent’s non-banking financial activities by investing in allied industries that align with Sundaram Finance’s core business vision. With a disciplined approach to capital allocation, Sundaram Finance Holdings continues to contribute to the financial stability and expansion of the group. 
  • Sundaram Finance Ltd. (Retail Deposits & Wealth Advisory Division): This division focuses on offering fixed deposits, wealth management, and advisory services. Sundaram Finance is renowned for its safe and customer-centric deposit schemes, attracting retail and institutional investors seeking stable returns. Its wealth advisory arm helps clients with financial planning, investment strategies, and portfolio management. The company leverages its decades-long trust and financial expertise to provide customized wealth solutions. The division plays a crucial role in diversifying Sundaram Finance’s revenue streams and enhancing customer engagement beyond traditional lending services. 

Q3 FY25 Earnings 

  • Revenue of ₹2190 crore in Q3 FY25 up by 20.2% YoY from ₹1821 crore in Q3 FY24.  
  • Financing Profit of ₹642 crore in this quarter at a margin of 29% compared to 31% in Q3 FY24. 
  • Profit of ₹455 crore in this quarter compared to a ₹506 crore profit in Q3 FY24. 

Financial Summary 

Amount in ₹ Cr Q3 FY24 Q3 FY25 FY23 FY24 
Revenue 1821 2190 5501 7274 
Interest  910 1087 2410 3418 
Expenses 351 462 1285 1632 
Financing Profit 561 642 1806 2224 
Financing Margin 31% 29% 33% 31% 
Other Income 7 17 43 -80 
Net Profit 506 455 1510 1842 
NPM 27.8% 20.8% 27.4% 25.3% 
EPS 38.5 41 119.5 129.3 
Bajaj Finance Ltd Q3 FY25 Results
Bajaj Finance Ltd Q3 FY25 Results: Strong 27.3% YoY Revenue Growth, Profit Reaches ₹4,308 Cr

Bajaj Finance Ltd: Overview 

Bajaj Finance Ltd. (BFL) is one of India’s leading non-banking financial companies (NBFCs) and operates as a subsidiary of Bajaj Finserv Ltd. The company has built a formidable presence in the financial services industry with a diversified portfolio spanning consumer, SME, and commercial lending. Company is present in 1,538 locations with 134.7K+ active distribution points of sale as of Q3FY24. BFL is the largest consumer electronics, digital products & lifestyle products lender in India. BFL has established itself as a key player in the Indian NBFC sector, which is currently experiencing significant growth due to increasing consumer credit demand, rapid digital transformation, and supportive regulatory policies. The NBFC sector in India plays a crucial role in financial inclusion, bridging the gap between traditional banking services and underserved markets. Bajaj Finance has successfully leveraged technology-driven solutions to enhance its customer experience, optimize operations, and expand its distribution network. The company has also adopted a multi-channel approach, integrating physical branches with digital platforms, ensuring accessibility across urban and rural markets. With a continuous focus on innovation, customer-centric offerings, and strategic expansion, Bajaj Finance is well-positioned to maintain its leadership in the rapidly evolving financial landscape. 

Latest Stock News 

Bajaj Finance delivered a strong quarter in terms of volumes, AUM growth, and operating expenses, with loan losses stabilizing and profit growth gaining momentum. Return on assets (ROA) remained steady, while the company achieved an AUM growth of ₹24,119 crore. It booked a record-high 12.06 million new loans and added 5.03 million new customers, bringing its total customer franchise to 97.12 million. Home loans AUM grew by 23%, Loan against property grew by 19%, Lease rental discounting grew by 26%, Developer finance grew by 59%. The Bajaj Finserv App reached 66.57 million net users. In Q3 FY25, the company expanded its geographic presence by adding 14 new locations and 8,900 distribution points, increasing its total locations to 4,259 and active distribution points to over 224,000 as of December 31, 2024. The liquidity buffer stood at ₹13,656 crore. Geographic presence stood at 174 locations. The cost of funds decreased marginally to 7.96% in Q3, while gross and net NPA stood at 1.12% and 0.48%, respectively, as of December 31, 2024, compared to 0.95% and 0.37% in the previous year, maintaining one of the lowest NPA levels in the industry. Capital adequacy remained robust at 21.57%, with Tier-1 capital at 20.79%. 

Business Segments 

  • Consumer Finance: This segment includes personal loans, two-wheeler and three-wheeler financing, durable goods financing, lifestyle financing, and digital product financing. By offering flexible and customized financial products, Bajaj Finance has become a preferred choice for retail consumers seeking financing solutions for personal needs and purchases. 
  • SME & Commercial Lending: This segment caters to small and medium enterprises by offering business loans, working capital loans, professional loans, and loans against property. These financial products help businesses meet their capital requirements, expand operations, and manage cash flow effectively. 
  • Rural Lending: Recognizing the growing financial needs of rural customers, Bajaj Finance has expanded its rural lending portfolio. The company offers agricultural equipment loans, gold loans, and personal finance products tailored for rural markets, helping drive financial inclusion and economic development in these areas. 
  • Mortgages: This segment covers home loans, loans against property, and lease rental discounting. With a growing demand for housing and real estate financing, Bajaj Finance provides attractive mortgage solutions to customers seeking property-related financial assistance. 
  • Deposits: Bajaj Finance offers fixed deposit schemes for retail and corporate customers, providing a safe and reliable investment avenue. With competitive interest rates and flexible tenure options, the company’s deposit products have gained popularity among investors seeking stable returns. 
  • Partnerships & Co-Branded Cards: The Company collaborates with financial institutions and banks to offer co-branded credit cards and digital payment solutions. These partnerships help in expanding customer reach and enhancing the overall payment ecosystem in India. 

Subsidiary Information 

  • Bajaj Housing Finance Ltd (BHFL): A wholly-owned subsidiary that specializes in home loans, loans against property, and developer financing. With a strong presence in the housing finance sector, BHFL plays a crucial role in expanding Bajaj Finance’s mortgage offerings. 
  • Bajaj Financial Securities Ltd (BFSL): This subsidiary focuses on wealth management services, offering investment solutions, brokerage services, and trading platforms. BFSL helps investors navigate the stock market and make informed investment decisions. 
  • Bajaj Finserv Direct Ltd: This subsidiary provides digital financial solutions, enabling customers to access insurance, loans, and investment products online. Through a seamless digital experience, Bajaj Finserv Direct Ltd. enhances financial accessibility and convenience for customers. 
  • Bajaj Auto Finance Ltd: Primarily engaged in vehicle financing, this subsidiary caters to two-wheeler and three-wheeler customers by providing financing solutions for automobile purchases. It plays a vital role in supporting Bajaj Auto’s extensive customer base. 
  • Bajaj Allianz Financial Distributors Ltd: This subsidiary acts as a distributor for various financial products, including insurance and investment services. By offering a wide range of financial products, it supports customers in making sound financial decisions and securing their future. 

Q3 FY25 Earnings 

  • Revenue of ₹18035 crore in Q3 FY25 up by 27.3% YoY from ₹14164 crore in Q3 FY24.  
  • Financing Profit of ₹5958 crore in this quarter at a margin of33% compared to 36% in Q3 FY24. 
  • Profit of ₹4308 crore in this quarter compared to a ₹3639 crore profit in Q3 FY24. 

Financial Summary 

Amount in ₹ Cr Q3 FY24 Q3 FY25 FY23 FY24 
Revenue 14164 18035 41411 54972 
Interest  4868 6386 12701 18886 
Expenses 4229 5691 12693 16099 
Financing Profit 5066 5958 16018 19987 
Financing Margin 36% 33% 39% 36% 
Other Income 5 26 -5 6 
Net Profit 3639 4308 11508 14451 
NPM 25.7% 23.9% 27.8% 26.3% 
EPS 61.8 68.6 190.1 233.5 
Bajaj Holdings & Investment Ltd
Bajaj Holdings & Investment Ltd: A Leading NBFC with Strong Market Performance and Investment Potential

Company Overview

Bajaj Holdings & Invest. Ltd, was demerged from Bajaj Auto Ltd. The manufacturing work was transferred into Bajaj Auto, wind farm business and financial services business was given to Bajaj Finserv Ltd, and the properties, assets, liabilities of Bajaj Auto is transferred to Bajaj Holdings & Investments Ltd. It is registered as NBFC with RBI and it holds more than 35% stake in both Bajaj Auto Ltd and Bajaj Finserv Ltd. The revenue segments for the firm are basically interest income, fair value gain/loss and dividend income. The investments are done in Equity and debt markets; the diversification is handled as 65% investments in equity market and 35% in debt funds to balance the risk of its portfolio.

Shareholding Pattern as on September 2024

Key Stats

Market Cap₹130761 Crore
Revenue₹1732 Crore
Profit₹7407 Crore
ROCE13.07%
P/E17.7

Peer Comparison

Amt in ₹ CrMCapSalesPATROCEAsset Turn.EV/EBITDAD/EFCF
Bajaj Hold & Inv.1307611732740713.07%0.0317.070.001941
Bajaj Finance422635622781537311.92%0.1716.943.74-73753
SBI Cards6331217749221012.54%0.3317.053.3-5526
Shriram Finance10898138466783911.27%0.1610.873.97-31635
Muthoot Finance8614414397413313.15%0.1613.312.82-9471

Financial Trends

Amount in ₹ Cr20202021202220232024
Revenue4354574845221702
Expenses134106117142140
EBITDA3013523673801562
OPM69%77%76%73%92%
Other Income30583451389646735967
Net Profit30803654412649467365
NPM708.0%799.6%852.5%947.5%432.7%
EPS268.8327.98364.5435.8652.7

Latest News

The Bajaj Group, home to some of India’s most prestigious companies, has consistently delivered exceptional value to its investors. Known for its strong fundamentals and reliable returns, the group has established itself as a powerhouse for long-term wealth creation.

With the highly anticipated IPO of Bajaj Housing Finance on the horizon, an analysis by ETMarkets highlights robust performance across the Bajaj Group’s diverse portfolio. Flagship companies such as Bajaj Finance, Bajaj Finserv, Maharashtra Scooters, and Bajaj Auto have achieved extraordinary growth, with stock prices soaring over 1000%, transforming early investors into millionaires.

Bajaj Finance stands out as a prime example, delivering a staggering 2876% return over the past decade. This impressive stock performance is underpinned by solid financial growth, including a profitability CAGR of 34% and sales CAGR of 29.8% between FY14 and FY24, making it one of the most celebrated stocks in the market.

Stock Price Analysis

The share price is in growing trend and is increasing before 2020 and is still rising because the company holds the Bajaj Auto Ltd and Bajaj Finserv Ltd and they have been doing well in the market. Since Covid-19, the stock has increased 7 times from that price levels. The share traded volumes are still normal but the financials are helping the stock prices reach at new higher levels.