Arohan Financial Unlisted Shares
About Arohan Financial Unlisted Shares
Arohan, which was founded in 2006, is the largest microfinance organization in Eastern India and is in fifth place overall in terms of Gross Loan Portfolio (GLP). It serves low-income households through 829 microfinance branches (97% of borrowers are women) and 10 MSME lending branches all through 11 states, with a GLP of ₹5,357 crore (March 2023) and a 68% CAGR over three years. Funded by institutional investors such as the Michael & Susan Dell Foundation and Aavishkaar, Arohan announced its plans to go public in 2023.
Why Invest in Arohan Financial Services Unlisted Shares?
Investing in Arohan Financial Services Unlisted Shares offers a unique opportunity to tap into India’s growing microfinance sector. Here’s why it stands out:
- Market Leadership: Fifth-largest NBFC-MFI in India with a dominant presence in Eastern India.
- Rapid Growth: Loan portfolio grew at 68% CAGR (2020–2023), reaching ₹6,616 crore in advances by 2024.
- Strong Asset Quality: Gross NPA improved sharply from 11.23% (2021) to 1.64% (2024); Net NPA near zero (0% in 2024).
- IPO Potential: DRHP filed in 2023, enhancing liquidity prospects for unlisted shareholders.
Moreover, like any investment, there are risks to consider, such as high borrowing dependency, low PAT margins, and regional concentration.
Business Segments – Driving Financial Inclusion
- Microfinance Loans (Core Segment):
- Focuses on income-generating loans for women in rural and semi-urban areas.
- 97% of borrowers are women, with loans disbursed through 829 branches.
- MSME Lending:
- Provides credit to small businesses via 10 branches in eight states.
- Financial Inclusion Products:
- Offers insurance and savings products alongside credit services.
Financial Highlights (2021–2024)
- Revenue Recovery: Interest earned rebounded from ₹858 crore (2022) to ₹1,380 crore (2024), a 61% growth.
- PAT Turnaround: Shifted from a net loss of ₹160 crore (2021) to a profit of ₹314 crore (2024).
- NPA Resolution: Gross NPA reduced by 85% (11.23% to 1.64%) and Net NPA to 0%, reflecting robust recovery mechanisms.
- Advances Growth: Loan book expanded by 68% (₹3,925 crore in 2021 to ₹6,616 crore in 2024).
- Balance Sheet Strength: Reserves grew 83% (₹958 crore to ₹1,757 crore), supporting debt-equity stability (1.72x P/B in 2024).
- Valuation Metrics: Unlisted shares priced at ₹155 (2024) trade at P/E of 25x and P/B of 1.72x, aligning with pre-IPO benchmarks.
Arohan Financial Services Unlisted Shares Considerations
Arohan unlisted shares attract investors seeking exposure to India’s microfinance growth story. Key drivers include:
- IPO Catalyst: Successful listing could unlock valuation upside and liquidity.
- NPA Management: Sustained asset quality (0% Net NPA) boosts investor confidence.
- Rural Penetration: Focus on underbanked states aligns with financial inclusion goals.
Risks to Monitor:
- Debt Servicing: Rising interest costs (₹592 crore in 2024) may pressure margins.
- Regulatory Scrutiny: Compliance with RBI norms for NBFC-MFIs.
- Economic Sensitivity: Vulnerability to income shocks in low-income demographics.
With a ₹157.41 crore share capital and improving EPS (₹19.95 in 2024), Arohan’s unlisted shares price hinges on IPO progress, sector sentiment, and macroeconomic stability.
Key Drivers of Arohan Financial Services Unlisted Share Price
- IPO Catalyst: Successful listing could unlock valuation upside and liquidity.
- NPA Management: Sustained asset quality (0% Net NPA) boosts investor confidence.
- Rural Penetration: Focus on underbanked states aligns with financial inclusion goals.
For unlisted shares, liquidity and pricing depend on private market demand, sector trends, and the company’s ability to maintain its growth trajectory.
Pros
- Market Leadership – Fifth-largest NBFC-MFI in India with a stronghold in Eastern India.
- Rapid Growth – Loan portfolio expanded at a 68% CAGR, reaching ₹6,616 crore in 2024.
- Strong Asset Quality – Gross NPA reduced from 11.23% (2021) to 1.64% (2024), with Net NPA at 0%.
Cons
- High Borrowing Dependency – Borrowings reached ₹5,617 crore, making up 69% of liabilities.
- Low PAT Margins – Profitability impacted, with PAT margins at 22.7% due to rising costs.
- Regional Concentration – Heavy exposure to low-income states increases default risks.
Key Details
| Share Name | Particulars |
|---|---|
| Arohan Financial services Unlisted | 260.00 |
| Shares Price | Per Equity Share |
| Lot Size | 100 Shares |
| 52 Week High | ₹ 275 |
| 52 Week LoW | ₹ 200 |
| Depository | NSDL & CDSL |
| PAN Number | AAECP29810 |
| ISIN Number | INE808K01017 |
| CIN | U74140WB1991PLC053189 |
| RTA | Link Intime |
| Fundamentals | Value |
|---|---|
| Market Cap (in cr.) | 4131.72 |
| P/E Ratio | 26.10 |
| P/B Ratio | 2.04 |
| Debt to Equity | 2.93 |
| ROE (%) | 5% |
| Book Value | 127.44 |
| EPS | 9.96 |
| Face Value | 10 |
| Total Shares | 158912300 |
Financials
| P&L Statement | 2024 | 2023 | 2022 |
|---|---|---|---|
| Interest Earned | 1380 | 930.96 | |
| Other Income | 254 | 160.02 | |
| Interest Expended | 592 | 468.64 | |
| Operating Expenses | 451 | 334.98 | |
| Provisions and contingencies | 179 | 192.64 | |
| PAT | 314 | 70.71 | |
| eps | 19.95 | 4.7 | |
| Gross NPA | 1.64 | 2.8 | |
| Net NPA | 0 | 0.21 |
| Ratio | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
| Operating Profit Ratio | 63% | 52% | |
| Net Profit Ratio | 20% | 7% | |
| Return on Eqyity | 16% | 5% | |
| Debt-Equity | 2.72 | 2.85 | |
| Current Ratio | 1.31 | 1.26 | |
| Dividend Payout Ratio | 0% | 0% |
| Company | AROHAN FINANCIAL SERVICES LTD | SPANDANA SPHOORTY FINANCIAL LTD | CREDITACCESS GRAMEEN LTD |
|---|---|---|---|
| Market Cap (₹ Crores) | 4132 | 2075 | 18895 |
| Profitability Margin (%) | 6.47% | 9.23% | |
| ROCE (%) | 11.28% | 14.20% | 9.52% |
| ROE (%) | 5.42% | 14.20% | 7.86% |
| D/E Ratio | 2.13 | 2.14 | 2.94 |
| P/E Ratio | 26.10 | 35.6 | |
| P/B Ratio | 2.04 | 0.61 | 2.72 |
| Book Value per Share (₹) | 127.44 | 480.00 | 436 |
| Assets | 2024 | 2023 | 2022 |
|---|---|---|---|
| Fixed Assets | 11 | 5.3 | |
| Cash and Balances | 1268 | 556.56 | |
| Investments | 90 | 78.77 | |
| Advances | 6616 | 4782.21 | |
| Other Assets | 130 | 595.3 | |
| Total Assets | 8115 | 6018.14 |
| Liabilities | 2024 | 2023 | 2022 |
|---|---|---|---|
| Share Capital | 157.41 | 150.38 | |
| FV | 10 | 10 | |
| Reserves | 1757 | 1187.63 | |
| Borrowings | 5617 | 3809.36 | |
| Trade Payables | 0 | 0 | |
| Other Liabilities | 583.59 | 870.77 | |
| Total Liabilities | 8115 | 6018.14 |
