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RATING

RECOMMENDATION

Strong 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 %

  • -23.52%

    1 Year

  • 11.28%

    3 Year

  • 20.91%

    5 Year

Revenue of the company has seen a huge fall of 23.5%. The major reason for the same was increase in provision for loan losses by company, as in covid 19 chances of defaults on consumer as well as corporate loans increased. But interest earnings of the company increased by around 13.5% specifically due to improved in retail segment.  A total of over 10 Lakh of two wheeler loans were disbursed in FY21, while Rs.4,206 Cr. worth of loans were disbursed to corporates during the year.

Hero FinCorp Net Profit Growth(PAT)

Growth in %

  • -81.43%

    1 Year

  • -28.79%

    3 Year

  • -8.73%

    5 Year

The company was highly affected by covid pandemic, but in second half of FY21 as the situation improved company geared up and showed satisfying results. Overall income of the company increased including interest income as well as other miscellaneous income, while Interest expense saw a rise of 5%. Overall results were positive but due to provisions and restrictions applied by RBI and government, company increased their provision expense which led to a fall in net profit of the company.

Hero FinCorp EPS Growth

Growth in %

  • -82.51%

    1 Year

  • -34.88%

    3 Year

  • -18.97%

    5 Year

In FY21 EPS of the company has decreased by 82.5%, which is a huge fall for the company. The major reason behind the fall was increase in bad debts by its customers. Due to this company had to increase balance in their provision for loan losses account.

  • Hero FinCorp Book Value Growth

Growth in %

  • 16.41%

    1 Year

  • 31.13%

    3 Year

  • 42.81%

    5 Year

Equity of the company has increased this year due to 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 amount of common equity shares but no. of shares of the company remained constant. While 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 %

  • -78.09%

    1 Year

  • -23.66%

    3 Year

  • -5.70%

    5 Year

Hero FinCorp Operating Profit Growth

Growth in %

  • -84.16%

    1 Year

  • -30.57%

    3 Year

  • -10.64%

    5 Year

Operating profit of the company deteriorated in FY21, as after pandemic company faced many loan defaulters, and had to manage settlement loss and bad debts of worth around 1,417.74Cr. which led to the significant fall in its revenue. on the same hand other expenses including loan collection charges, IT charges and contractual staff cost all increased, while company tried to reduce to its permanent employee benefits expense.

Hero FinCorp Asset Growth

Growth in %

  • 10.28%

    1 Year

  • 30.42%

    3 Year

  • 35.69%

    5 Year

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

Cash flow from operating activities of the company has improved this year but is still negative. The improvement was led by decrease in trade receivables and loans, while trade payables and other financial liability of the company has increased. This improved the free cash flow of the company from its previous years.

  • Hero FinCorp Sector Specific Ratios

Hero FinCorp Return on risk weighted assets(RORWA)

Hero FinCorp Net NPA

Growth in %

  • 4.54 %

    1 Year

  • 19.23 %

    3 Year

  • 53.55 %

    5 Year

BY FY21 Total amount of NPA company has is Rs.1,122.11 Cr, which has seen a growth of 19.83% from last year. Major portion of company's NPA consist of corporates and auto loans, i.e. 8.12% and 7.93% respectively.

Hero FinCorp Gross NPA

Growth in %

  • 14.65 %

    1 Year

  • 23.22 %

    3 Year

  • 277.54 %

    5 Year

BY FY21 Total amount of GNPA company has is Rs.1867.90 Cr, which has seen a growth of 22.57% from last year. Major reason behind this increase was defaults made by borrowers during the pandemic. Even after extension of moratorium period, many loan takers defaulted, and 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 19.74% as on March 31, 2021, which is well above the RBI mandated norm of 15%. This shows currently company has 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

In FY21 both current assets and liability of the company has decreased significantly due to maturity of deposits with bank and repayment of commercial papers.

Hero FinCorp Quick Ratio

Hero FinCorp Interest Coverage Ratio

  • Hero FinCorp Operating Efficiency

In FY21, company has seen improvement in its net interest income due to rise in disbursement of retail loan in 2nd half of FY21 but still margins of the company has 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 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

Hero FinCorp Tier 2 Capital Ratio

Hero FinCorp Tangibe Book Value