Скачать или смотреть Arman Financial Services: From Stress to Recovery ?

Arman Financial Services: From Stress to Recovery?
==============================

Note: This video is for educational purposes only. It does not constitute financial advice or a recommendation.

Timestamps :
00:00 - Introduction
00:53 - About the Company
02:33 - Historical Performance
05:26 - Q2 FY 2026 Results and Insights from con-call
10:49 - Valuations


About the Company
==============================
Arman Financial Service Ltd is an RBI-registered Non-Banking Finance Company
They operate in four categories - MICROFINANCE – JLG (65.8 %) , MSME LOANS (22.2 %) , TWO-WHEELER LOANS (3.52%) , LOAN AGAINST PROPERTY (LAP) (3.54%) , Individual business loans (4.96%)
Founded by Mr. Jayendra Patel in 1992 and Headquartered in Ahmedabad, Gujarat.
Listed on the BSE (since 1995) and the NSE (since 2016).
Presence in 11 states , 509 branches serving more than 6 lakh customers
Top Contributors : Gujarat , Uttar Pradesh , Jharkhand, MP, Rajasthan

Historical Performance :
==============================
High-Growth Trajectory (FY16-25 CAGR): • AUM: ~33% • Net Interest Income: ~39% • PAT: ~23%
Number of branches increased to 509 from 474
5100 + employees

Micro-finance Industry facing headwinds from more than 1 year
Due to customer over leveraging ( borrower having more than 3 lenders)
Karnataka Ordinance ( Early 2025)

Q2 FY 2026 Results
==============================
AUM - trajectory from last 5 quarters- 2465 — 2280 —2245 ——2156 ——2130 (Q2 FY 2026)
Q2 profit - INR 8 crore (vs Q1 loss INR 14.6 crore) 15 crore last FY year Q2
RoA - 1.5% , RoE —3.7%
Cost to income —48.7 Q2 V/s 44.0 Q1
NIM —16.7% Q2 V/s 16.0% Q1
GNPA / NNPA : 3.7% / 0.5% (Q2) V/s 3.5 %/0.5% (Q1)

Key Insights from con-call and results
==============================
Disbursement - trajectory from last 5 quarters- 373 —338 ——544 ——390 ——475 (Q2 FY 2026)
Q2: INR 475 cr, +26% YoY / +21% QoQ
PAR31-90 movement (improving QoQ)
Microfinance— 2.9 % Q2 V/s 6.1 % Q1
2W — 4.0 % Q2 V/s 4.7 Q1
MSME — 1.3 % Q2 V/s 1.6 % Q1
Collection Efficiency (improving QoQ) — Consolidated 95.6 % Q2 V/s 95.3% Q1
Credit cost for last 3 quarters (improving QoQ)— 89 ——66 — —38 crore
Product underwriting architecture - Branch Credit Manager model Directly impacts: PAR slippages, GNPA levels & Credit costs
Portfolio created after September 2024 under the new model has a 99.4% zero DPD (Days past due) repayment rate.
~40% lower delinquencies
Collection efficiency: improvement in Sep; “zero bucket strengthening to almost 99%. Collection efficiency better in Oct as compared to Sep
October MFI disbursement cited around ~INR 140 crore(one of the highest in 6–7 months).

Valuation
========================
Market cap (1550-1600 crore) Share price ~ 1480 Price to book ~ 1.8
Median Price to book oner last 10 years - 3.2 Median Price to book oner last 5 years - 3.9 Peak Valuation - 9.3

RoA ( FY 22 to FY 24)— 3.1 ——5.9 ——7.6
RoE ( FY 22 to FY 24) — 15.6 ——32.4 ——27.8


Risk factors :
Highly cyclical industry
Industry cycle to be monitored closely

Note: This content is for educational purposes only and is not investment advice under SEBI regulations.
The creator is not a SEBI-registered advisor—investments are subject to market risks; please do your own research.