RATING

RECOMMENDATION

Sell

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RATING

RECOMMENDATION

Sell

Business Type

Traditional Business

RATING

RECOMMENDATION

Sell

Business Type

Traditional Business

  • Hero FinCorp Growth

Discover and get info on Hero FinCorp Share Price before buying, selling and investing - Read our Research report on Hero FinCorp IPO For Information like - Management, Business Model, Financials, Growth, Valuations, Funding Rounds, News.

Hero FinCorp Revenue Growth

Growth in %

  • 6.04%

    1 Year

  • 0.60%

    3 Year

  • 12.51%

    5 Year

The company's revenue has increased by 6% as a result of an increase in interest income, notably owing to improvements in the retail market. As of March 31, 2022, the Retail team had created the capacity to distribute a loan every 10 seconds and had served over 7 million satisfied clients. Over 8.78 lakh two-wheeler loans were disbursed, resulting in a total active customer base of over 2.8 million and an asset book of approximately Rs. 7,980 crores.

During the fiscal year under review, loans of Rs. 6,094 crores were disbursed. The year ended with a strong SME & Corporate asset book of Rs. 11,624 crores.

Hero FinCorp Net Profit Growth(PAT)

Growth in %

  • NA

    1 Year

  • NA

    3 Year

  • NA

    5 Year

The company was highly affected by the covid pandemic, but in the second half of FY21 as the situation improved company geared up and showed satisfying results. In FY22, the company incurred a huge loss due to an increase in its provisions and other expenses including staff costs and loan collection charges, while the overall income of the company increased including interest income as well as other miscellaneous income. Moreover, the company has written off ~ Rs 500 cr. bad debt, which has negatively impacted the profitability of the company.  

During this time the RBI announced a slew of measures to tackle the second wave including the flow of credit to desired sectors and maintaining adequate liquidity levels.

Hero FinCorp EPS Growth

Growth in %

  • NA

    1 Year

  • NA

    3 Year

  • NA

    5 Year

In FY22 EPS of the company has become negative and decreased by -456.3%, which is a huge fall for the company. The major reason behind the fall was an increase in bad debts by its customers. Due to this company had to increase the balance in their provision for loan losses account.

  • Hero FinCorp Book Value Growth

Growth in %

  • 3.64%

    1 Year

  • 18.49%

    3 Year

  • 26.99%

    5 Year

In FY22, the equity of the company has reduced as a result of a fall in retained earnings due to losses incurred by it. In FY21, the Equity of the company increased by 11% due to the shift of partially paid-up equity shares of Rs. 5 and Rs. 5.6 to the fully paid up shares of Rs.10 each. This increased the number of common equity shares but no. of shares of the company remained constant. While the company had to increase its security premium and other reserves due to volatile and risky market conditions created by the pandemic and due to certain guidelines published by RBI related to loan moratorium. 

Hero FinCorp EBITDA Growth

Growth in %

  • NA

    1 Year

  • NA

    3 Year

  • NA

    5 Year

Hero FinCorp Operating Profit Growth

Growth in %

  • NA

    1 Year

  • NA

    3 Year

  • NA

    5 Year

The operating profit of the company deteriorated in FY22, as after the pandemic company faced many loan defaulters, and had to manage settlement loss and bad debts of worth around  Rs.1,840.81 Cr. which led to a significant fall in its revenue. On the same hand other expenses including loan collection charges, IT charges and contractual staff costs all increased.

Hero FinCorp Asset Growth

Growth in %

  • 14.68%

    1 Year

  • 17.75%

    3 Year

  • 28.24%

    5 Year

In FY22, the company's total assets are valued at Rs.34399.05 crores, a 14.68% growth over FY21. The company's loans climbed by 19.6%, while security deposits and deferred tax assets also increased.

During the FY21, the Company had invested an amount of Rs.100 Cr. into Hero Housing Finance Limited (HHFL), by way of making a payment towards First & Final call money on 20,83,33,333 partly paid equity shares, also invested in many other government securities and mutual funds, to secure the money in this volatile market. Currently, they are working on the betterment of their fixed assets as well by improving data processing equipment.



Hero FinCorp Cash Flow from Operations

Growth in %

  • NA

    1 Year

  • NA

    3 Year

  • NA

    5 Year

The company's cash flow from operations has decreased this year and is negative. It was driven by a rise in the company's loans, although its trade payables were also lowered.

  • Hero FinCorp Sector Specific Ratios

Hero FinCorp Net NPA

Growth in %

  • 0.43 %

    1 Year

  • 15.95 %

    3 Year

  • 21.9 %

    5 Year

BY FY22 Total amount of NPA the company has is Rs.1,350.42 Cr, which has seen a growth of 20.34% from last year. The major portion of the company's NPA consists of personal loans and auto loans, i.e. 7.41% and 11.43% respectively.

Hero FinCorp Return on risk weighted assets(RORWA)

Hero FinCorp Gross NPA

Growth in %

  • 7.3 %

    1 Year

  • 22.38 %

    3 Year

  • 24.79 %

    5 Year

BY FY22 Total amount of GNPA company has is Rs 2,401.03 Cr, which has seen a growth of 28.5% from last year. The major reason behind this increase was defaults made by borrowers during the pandemic. Even after the extension of the moratorium period, many loan takers defaulted, and the company had to increase their loan loss provision reserves.

Hero FinCorp Capital Adequacy Ratio(CAR)

The Company continues to fulfill all the norms and standards laid down by the RBI pertaining to Capital Adequacy. As against the RBI norm of 15%, your Company has been able to maintain a Capital Adequacy Ratio (CAR) of 16% as on March 31, 2022, which is above the RBI mandated norm of 15%. This shows currently company has an adequate amount of capital to get rid of any worst scenario.

  • Hero FinCorp Solvency Ratios

Hero FinCorp D/E Ratio

Debt of the company is continuously increasing, due to more and more induction of redeemable non-convertible debentures.

Hero FinCorp Current Ratio

Both the company's current assets and liabilities rose considerably in FY22, owing to growth in cash and cash equivalents including deposits in banks and an increase in short-term borrowings.

Hero FinCorp Quick Ratio

Hero FinCorp Interest Coverage Ratio

  • Hero FinCorp Operating Efficiency

In FY22, the company has seen an improvement in its net interest income due to a rise in the disbursement of retail loans in 2nd half of FY21 but still, margins of the company have seen a significant fall, as the bad debts and loan settlement provisions of the company increased due to increase in defaults  and loan collection charges after the pandemic.

Hero FinCorp Operating Profit EBIT Margin(OPM)

Hero FinCorp Profit Before Tax Margin (PBT Margin)

Hero FinCorp Profit After Tax Margin (PAT Margin)

  • Hero FinCorp Profitablity Ratio

Hero FinCorp Return on Equity(RoE)

ROE of the company has significantly reduced as this year amount of equity has increased due to increase in fully paid up equity shares. While company was not able to provide adequate returns on the same due to fall in its profit due to defaults made by customers in loan repayments or the delay caused in repayment owing to the moratorium policy announced by RBI.

Hero FinCorp Return to Assets (RoA)

ROA was significantly stable till last year but this year company has seen a huge fall in it, due to fall in its earnings and increase in its bad debt. Last year huge part of company's loan book got converted into bad debts. But company is trying to invest more and more in its assets even this year they have increased their earning in government securities as well as mutual funds for some security of funds.

  • Hero FinCorp Valuation Ratios

Hero FinCorp Dividend Yield

Hero FinCorp Earning Yield

  • Hero FinCorp NBFC's Ratios

Hero FinCorp Tier 1 Capital Ratio

As of FY22, the company has tier 1 capital of worth Rs.3,783.01 Cr., with a fall of 17.8% from FY21.


Hero FinCorp Tier 2 Capital Ratio

As of FY22, the company has tier 2 capital of worth Rs.720.38 Cr. with a fall of 30.0% from FY21.

Hero FinCorp Tangibe Book Value