Hero Fincorp Limited

Platform	Last Traded Price	Min Quantity

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.

Balance Sheet	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

Profit & Loss	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

Shareholding Pattern

Color	Shareholder	Holding
	"Hero Motocorp Limited"	41.19%
	Bahadur chand investments pvt ltd	20.34%
	Brijmohan lal Om Parkash (partnership Firm)	9.52%
	Hero Investcorp pvt ltd	2.70%
	Munjal Acme packaging systems pvt ltd	1.51%
	others	24.74%

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).

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

Strengths

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.

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 Sheet	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

Profit & Loss	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

Shareholding Pattern

Color	Shareholder	Holding
	"Hero Motocorp Limited"	41.19%
	Bahadur chand investments pvt ltd	20.34%
	Brijmohan lal Om Parkash (partnership Firm)	9.52%
	Hero Investcorp pvt ltd	2.70%
	Munjal Acme packaging systems pvt ltd	1.51%
	others	24.74%

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