Hero FinCorp Limited Unlisted Shares|Latest Share Price & Updates
Company Overview
Hero Fincorp Share Price has been a significant aspect of the company’s trajectory. Incorporated in 1991 as Hero Honda Finlease Ltd to serve captive financial needs of Hero Honda Group, today Hero FinCorp has emerged as India’s No.1 two-wheeler finance company. As on 31-March-2021, the company had assets under management (AUM) of ₹ 25,121 crores and capital adequacy ratio of 19.74%.
In 2018, Hero FinCorp set up a wholly-owned subsidiary, Hero Housing finance Limited, to focus on housing loans and loan against property. During FY 2021, HHFL had assets under management (AUM) of ₹ 2369 crores.
The company has been rated AA+ (Stable) by ICRA and CRISIL for the purposes of availing bank finance. As on 31-March-2021, the company had gross NPA of 7.4% and net-NPA ratio of 4.61%.
During FY 2021, the company paid a final dividend of ₹ 1 per equity share.
Business Model
The operating with a diversified product portfolio of two-wheeler loan, personal loan, mortgage loan, asset-backed loan, bill discounting and SME finance.
Apart from two-wheeler loans, the company also extends used car loans, personal loans and home loans (through its subsidiary). The business model of the company is focussed on serving the credit needs of the unbanked customer segment.
The company extends two-wheeler finance through the network of 858 Hero motorcycle dealers and other 4100 touch points located in over 1900 cities, towns and villages.
In the non-retail segment comprising SME and corporate business, the company is operating out of 50 locations. The company offers equipment financing, working capital loans, other business loans, and bill discounting.
As on 31-March-2021, the total loan book of the company comprised 56% two-wheeler loans, 24% other retail loans, and 20% corporate loans.
Registered Address
The registered address of the company is located at 34, Community Centre, Basant Lok, Vasant Vihar, New Delhi.
| Symbol: | Hero Fincorp Ltd. |
|---|---|
| Face Value (₹): | 10 |
| ISIN: | INE957N01016 |
| Demat Status: | NSDL & CDSL |
| Lot Size: | 20 Shares |
SUBSIDIARY COMPANY: “Hero Housing Finance Limited (HHFL)” is an housing finance company. It was incorporated to provide housing finance to meet the needs for affordable housing , mid-market and prime segments. It is a 100% owned subsidiary of Hero Fincorp Limited. In FY 2020 , HHFL earned total income of Rs. 153.71 Crs, Interest income of Rs. 129.75 Crs, Advances of Rs. 1780.40 Crs and Net worth stands at Rs. 343.87 Crs. ( Click – Financial FY 2020)
Board of Directors:
| Name | Designation | Profile |
|---|---|---|
| Mr.Pradeep Dinodia | Directors |  |
| Mr.Vivek Chaand Sehgal | Directors | |
| Mr.Abhimanyu Munjal | Directors |  |
| Mr.Sanjay Kukreja | Directors | |
| Mr.Pawan Munjal | Directors | |
| Ms.Renu Munjal | Directors | |
Key Highlights Helping to Determine Hero Fincorp Share Price
- Hero FinCorp is India’s No 1 two-wheeler finance company.
- Superior business growth with 36% CAGR in total income during the last 3 years.
- At 7.8%, HeroFinCorp has the lowest cost of funds among all NBFCs and is rated AA+ by ICRA and CRISIL.
- Backed by Reputed Investors: Apollo Global, Chrys Capital, Credit Suisse and Apis Partners.
- Asset under management is Rs. 22,000+ Crores.
- CAGR Growth (2015 to 2020) – Total Income 65% , PAT 56% , Net worth 25% and Loan Book Size 49%.
- Private placement made during FY 2020 of 13,109,753 shares at Rs. 820 per share.
- Consistent Dividend Paying company.
- It has expanded its business across 1700+ cities in India , through 3100+ touch points with dedicated team of 5000+ employees.
Ratio
| Ratio | FY23 | FY22 |
|---|---|---|
| Operating Margin | 45% | 30% |
| Net Profit Margin | 7% | -4% |
| Return on Equity | 9% | -4% |
| Debt-Equity | 6.98 | 5.98 |
| Current Ratio | 1.12 | 1.14 |
| Dividend Payout | 21% | 0% |
Note:- Dividend payout = Total Dividend/Net Income.
It indicates, how much % of its Net Income, the company is paying out as dividend to its Shareholders.
Financial Highlights
Annual Result
| Particulars | 2022-23 | 2021-22 | 2020-21 | 2019-20 | 2018-19 |
|---|---|---|---|---|---|
| Total Income (₹ Crores) | 6447.55 | 4797.66 | 4333.52 | 3855.18 | 2518.47 |
| PAT (₹ Crores) | 479.95 | -191.90 | 51.62 | 278.03 | 245.75 |
| Diluted EPS | 37.67 | -15.06 | 4.22 | 24.01 | 23.73 |
| Book Value per Share (₹) | 412.22 | 374.68 | 390.22 | 351.23 | 318.91 |
| Equity (₹ Crores) | 5247.83 | 4769.98 | 4967.76 | 4471.34 | 3641.86 |
Quartly Result
| Particulars | FY23-Q1 | FY23-Q2 | FY23-Q3 |
|---|---|---|---|
| Total Income (₹ Crores) | 1393 | 1454 | 1562 |
| EBITDA (₹Crores) | 589 | 677 | 765 |
| PAT (₹ Crores) | 109 | 157 | 184 |
| PAT% | 8% | 11% | 12% |
| Basic EPS | 8.57 | 12.37 | 14.42 |
| Diluted EPS | 8.18 | 9.61 | 11.21 |
Note: EPS mentioned is not being annualised.
Financial Charts
Shareholding Pattern
Peer Comparison
| Company | Market Cap (₹ Crores) | Profitability Margin (%) | ROCE (%) | ROE (%) | D/E Ratio | P/E Ratio | P/B Ratio | Book Value per Share (₹) |
|---|---|---|---|---|---|---|---|---|
| HERO FINCORP LTD | 14640 | 7.44% | 54.08% | 9.15% | 6.98 | 30.53 | 2.79 | 412.22 |
| BAJAJ FINANCE LTD | 433163 | 27.80% | 11.80% | 23.50% | 3.99 | 35.10 | 7.93 | 898.00 |
| SHRIRAM FINANCE LTD | 68820 | 19.80% | 12.10% | 17.30% | 3.79 | 10.80 | 1.56 | 1162.00 |
Media Updates
“HERO FINCORP FY21 RESULT HIGHLIGHTS”
- Operating Income was up by 10% yoy , to Rs. 4046 Crore.
- Operating profit was declined by 84% yoy to Rs.75 Crore, mainly on account of higher impairment allowances on loan.
- PAT dropped by 77%, to Rs. 71 Crore.
- Debt/ Equity ratio was 4.33 in FY21 v/s 4.5 in FY20.
- Book Value stands at Rs. 396 per share in FY21 v/s Rs. 373 per share in FY20.
- Loan Book of the company stands at Rs. 23,857 Crore in FY21 , up by 6%.
- Dividend declared for FY21 was 10%.
“HERO FINCORP HALF YEARLY i.e. SEPT 2020 RESULT UPDATE”:
- Total Income has increased 16% to Rs. 1960 Crore in Sept 2020 (Rs. 1683 Crore in Sept 2019).
- PAT has dropped to Rs. 122.88 Crore in Sept 2020 (Rs. 164.82 Crore in Sept 2019) . This is due to impairment allowance on loan reported Rs. 600.87 Crore.
- EPS Diluted stands at Rs. 9.64 per share .
- Equity paid up capital is Rs. 121.54 Crore and Book Value stand at Rs. 380 per share.
- Loans and Advances stand at Rs. 21266 Crore in Sept 2020.
- Debt/ Equity Ratio has dropped to 4.26 in Sept 2020 (4.50 in March 2020).
Read More : https://www.herofincorp.com/sites/default/files/HFCL_Outcome_of_BM_30092020.pdf
“HERO FINCORP ISSUES PREFERENTIAL SHARES UNDER PRIVATE PLACEMENT.”
Herofincorp through its postal ballot dated 4th Jan, 2020 seek shareholders approval for private placement of equity shares.
Allotment details – 1,31,09,753 shares to be issued at Rs. 820 per share
Apollo Global set to invest $125 Mn in Hero FinCorp
Apollo Global Management has agreed to invest around Rs 940 crore ($125 million) of growth capital to buy into Hero Fincorp, the lending arm of the Hero Group. This is part of a larger Rs 2,000-crore capital raising exercise from existing and new investors.
The country’s largest two-wheeler maker Hero MotoCorp last month said its board has approved investing up to Rs 700 crore in the NBFC.
Frequently Asked Questions
The buying and selling of unlisted shares and pre-IPO shares is fully legal and valid.
The procedure to buy the Hero FinCorp unlisted shares is fairly simple. Once you have settled on the price and quantity of the transaction, you would have to transfer the funds into the bank account of the seller.
When the funds are transferred and transaction details are shared with the seller, your demat account will be credited with the shares either on the same day of the fund transfer or before the end of the next working day.
In the secondary market, the transactions related to unlisted shares take place with the existing owners of the shares who are generally the employees or existing investors in the company. The company itself is not directly involved.
The Hero FinCorp shares will get credited either the same day or before the end of the next working day when you transfer the funds into our bank account.
The minimum lot size varies on the basis of market conditions and demand and supply factors. To know the current lot size for Hero FinCorp unlisted shares, please visit the stock page on our website: www.delistedstocks.in
There are many factors which influence the pricing of unlisted shares. Apart from the supply and demand factors, the latest transactions happened on the same stock, last funding round of the company, and valuation level of companies of the similar size affect the pricing of the unlisted shares.
Before IPO, there is no restriction on sale and transfer of your Hero FinCorp unlisted shares.
But once the shares are listed on the stock exchange, for retail investors, there is a minimum lock-in period 6 months after listing on the stock exchange.
Once the selling price and quantity of shares is agreed with us, we will provide you with an UTR number to transfer the shares. Once you have transferred the shares into our company’s demat account, funds are released into your bank account within 24 hours or before the end of the next working day of the transfer of the shares.
If your holding period is less than 2 years, then such income is treated as business income and liable to get taxed as per tax slab of the investor.
If your holding period is more than 2 years, then your profits would be subject to long-term capital gains tax. The current short-term capital gain tax rate is 20% after indexation.
The trading in unlisted shares is governed by Securities & Contract (Regulation) Act, which comes under the preview of SEBI. The SEBI regulations become applicable when the stocks of the company get listed on the stock exchange. There is a minimum lock-in period of 6 months for pre-IPO investors.
The major risk associated with investing in unlisted stocks is the liquidity risk. The possible exit route for investors is either to sell to another investor or wait till the company gets listed on the stock exchange.
Yes, NRI’s can also buy and sell Hero FinCorp unlisted shares just like domestic investors. But their investment is on a non-repatriable basis.