Hero Fincorp Limited

Hero Fincorp Limited

Fundamentals

Quick Insights

  • Strong Parentage and Hero Group Support: HFCL benefits from the robust backing of the Hero Group through equity infusions and a shared brand reputation. This association bolsters its credibility and stability in the market. Extensive PAN-India Network: The company has a widespread presence across India, enabling deeper market penetration and serving a large customer base of 7.5 million.
Market Cap₹25,015.68 Cr
PE Ratio39.35
EPS₹49.94
Dividend Yield-
Book Value₹453.4 Cr
Debt/Equity6.2
Price/Book4.33
Price/Sales-
Industry PE55
Sales₹8,290.9 Cr
Profit After Tax₹637.05 Cr
Share Capital₹127.3 Cr
Shares Outstanding-
ISININE957N01016
SectorFinancial Services
Symbol-
About Company

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).

Latest News
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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.
Annual Reports
FY FY FY FY FY
Balance SheetFY2024FY2023FY2022FY2021FY2020FY2019
Equity Capital127.3127.3127.3127.3121.5114.2
Reserves3,527.74,349.84,840.54,642.75,120.55,644.7
Total Equity3,641.94,471.34,967.84,770.05,247.835,772.03
Borrowings000000
Provision24.134.341.748.154.969.9
Other Non-Current Liabilities67.38102.453.665.467.0115.7
Total Non Financial Liabilities91.4136.795.3113.4121.9185.6
Borrowings9,344.716,130.819,156.522,008.726,613.035,840.4
Other Current Liabilities7,990.86,460.35,776.57,507.011,468.511,406.7
Total Financial Liabilities17,335.422,591.124,933.029,515.738,081.547,247.1
Equity + Liabilities21,068.7327,199.1329,996.0334,399.0543,451.253,204.66
Fixed Assets (incl. WIP)103.8148.53116.36114.79135.05327.19
Other Non Current Assets218.6323.6423.7617.1599.3612.5
Total Non Financial Assets322.4472.1540.01731.9734.4939.7
Trade Receivables4.37.98.02.11.34.9
Cash & Cash Equivalents107.232,344.51,223.01,039.0791.4157.85
Other Current Assets20,634.824,374.728,225.032,626.041,924.252,102.2
Total Financial Assets20,746.426,727.029,456.033,667.242,716.952,264.9
Total Assets21,068.727,199.1329,996.0334,399.0543,451.253,204.66
Profit & LossFY2024FY2023FY2022FY2021FY2020FY2019
Revenue from Operations8,290.906,401.604,738.664,278.083,799.862,518.47
Growth %050.88%12.59%10.77%35.09%29.51%
Operating Expenses977.841740.82516.93340.03500.54235.85
Growth %078.03%44.58%32.70%4.80%21.01%
Operating Profit1,540.632,059.021,761.151,398.692,901.154,055.05
Op. Profit Margin %61.17%54.19%41.17%29.52%45.32%48.91%
Other Income055.3255.44594668.82
Finance Costs1,124.711,629.221,710.311,678.532,173.953,097.36
Depreciation24.8836.3335.2133.1937.9365.96
Profit Before Tax391.04448.7971.07-254.03735.22960.55
Tax145.3170.819.5-62.1255.3323.5
Tax %5.77%4.49%0.45%-1.31%3.99%3.90%
Profit After Tax245.75278.0351.6-191.9479.95637.05
Growth %013.14%-81.43%-471.76%-350.10%32.73%
PAT %9.76%7.32%1.21%-4.05%7.50%7.68%
Diluted EPS23.7324.014.22-15.0737.6749.94
Shareholding Pattern
ColorShareholderHolding
"Hero Motocorp Limited"41.19%
Bahadur chand investments pvt ltd20.34%
Brijmohan lal Om Parkash (partnership Firm)9.52%
Hero Investcorp pvt ltd2.70%
Munjal Acme packaging systems pvt ltd1.51%
others24.74%
Board of Directors
pawan munjalchairman & director
renu munjalnon executive director
abhimanu munjalnon executive director
pradeep dinodianon executive director
paramdeep singhnon executive director
sanjay kukrejanon executive director
amar raja singh bindranon executive director
anuranjita kumarnon executive director
Senior Management
Mr Abhimanyu MunjalManaging Director & CEO
Mr Sajin MangalathuCFO
Mr Shivendra SumanCompany Secretary

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