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Hero FinCorp Limited Unlisted Shares

Hero FinCorp Limited Unlisted Shares Description

Hero Fincorp Limited Unlisted Shares 

The company was incorporated in December 1991 as Hero Honda Fin Lease Limited. The restructuring from the parent company Hero Motor Corp Limited led to the Present Hero Fincorp Limited. It has a presence at more than 2000 places across Hero MotoCorp’s network and offers retail financing to the customers. The company has also partnered with over 2,000 corporate clients.

Details of Hero Fincorp Limited Unlisted Shares:

Company Name Hero Fincorp Limited
Hero Fincorp share price see deals below
Face Value of Shares Rs 10/equity
ISIN INE957N01016
Lot Size 50 shares

HFCL is in the business of Financing, Bill Discounting, Leasing, and other financial services.

Products offered by Hero Fin Corp are classified under categories Retail Services and SME and Corporate Business:

  1. Retail Business: Present at dealerships across 1900 cities. A total of over 13.5 Lakh of two-wheeler loans were disbursed in FY19 which amounted to a total active customer base of around 3 Million and an asset book of approx. Rs. 7,956 Crore.
  • Used Car Loans– These range from 0.5 Lac to 50 Lac ranging for all brands. The LTV is up to 175% of second cars and is available across 240 cities across India. Tenure is up to 5 years.
  • Two Wheeler Loans– The company grants loans for financing of 2 wheelers. The amount can vary from ₹10,000 to ₹1,00,000 and the LTV is up to 95%. The tenure of these loans can be up to 48 months.
  1. SME and Corporate Business: It is the non-retail segment operating out of 50 locations. In FY20,  the company disbursed loans worth Rs. 7,720 during the year.
  • Medical Equipment Financing– Can be used to purchase X-Ray Machines, Dental chairs, Ultrasound machines, C-Arms, MRI Scanners. Tenure provided is up to 7 years and loans starting value is Rs 10 Lacs.
  • Loan against property– Loan starting from Rs 50 lac and go up to Rs 15 Cr. Flexible tenure of 15 years. High LTV of 75%.
  • Working Capital Loans– LTV of 75% to 80% with an upper limit of Rs 5 Cr on loans. Interest rates are between 11% and 14% with flexible tenure of 3 years.
  • Bill Discounting or Invoice Discounting- Loan Tenure of up to 120 days/ 4 months. Loan amount of up to 80% of the invoice value. No collateral for high credit rating entities.
  • Home loan– 30 years loan tenure and the maximum loan amount is Rs 5 Cr.

Management of Hero FinCorp 

The Board of Directors consists of Pawan Munjal acting as the Chairman and CEO of Hero Fincorp Ltd, Renu Munjal acting as the Managing Director, and Abhinayu Munjal is also the joint MD.

Leadership Team

  • COO- Ajay Sahasrabuddhe
  • CFO- Jayesh Jain
  • CBO- Mahesh Sanghvi
  • Chief HR Officer- Preemita Singh
  • Head MD & CEO’s office- Priya Kashyap
  • Head IT- Sajin Mangalathu
  • Head Operations- Subhransu Mandal

Funds Raised by Hero FinCorp 

  • Equity Infusion of Rs 106 Cr in Feb 2013
  • Equity Infusion of Rs 213 Cr in Feb 2014
  • Equity Infusion of Rs 1002 Cr in Sept 2016

Shareholding Pattern as of March 31, 2020

Category No of Shares Held % of share Holding
No of fully paid up Equity Shares No of partly paid-up equity shares held Total no of shares held
Promoters holding 9,12,03,151 1,00,53,281 10,12,56,432 79.54%
Non-promoters’ Holding 2,29,91,975 30,58,267 2,60,50,242 20.46%
Grand Total 12,73,06,674

Financial highlights of FY 2019-2020

  1. During the year, receivables under financing activity including leasing portfolio have grown by 19% from Rs. 19,736 crore in FY 2018-19 to Rs. 23,389 crore.
  2. The total income has shown an impressive growth of 49% from Rs.2,493 crore in FY 2018-19 to Rs. 3,663 crore in FY 2019-20.
  3. The company has recommended a final dividend of 25.50% (Rs. 2.55/- per equity share) for the financial year ended March 31, 2020. This would mean an outlay of Rs. 30.99 crore on account of dividend for the current financial year 2019-20 as against Rs. 48.53 crore in the previous financial year.
  4. The company has maintained a Capital Adequacy Ratio (CAR) of 19.55% as opposed to the RBI norms of 15%.
  5. Rs 31.02 crore i.e. 10% of the profit after tax (PAT) for FY 2019-2020 was transferred to the General Reserve of the Company.

Hero FinCorp Limited’s Profit & Loss of Key Highlights

Particulars (Rs. Cr) 2016 2017 2018 2019 2020
Total Revenue 771.38 1332.69 1691 2492 3663
Revenue Growth % 158.64 72.77 26% 47% 46%
Profit/Loss Before Tax (PBT) 124.76 200.62 215 413 480
Profit/Loss After Tax (PAT) 81.5 130.41 145 268 310
PAT Growth % 145.85 60.01 24.57 84% 16%
Earnings per share (EPS) 12.11 15.38 15.63 25.97 27

Hero FinCorp Limited Balance Sheet: Key Highlights 

Particulars (in Crs) FY17-18 FY18-19 FY19-20
Total assets 13,522.55 21,068.73 27,199.13
Total Liabilities 11,274.10 17,426.87 22,727.79
Equity Capital 2,248.45 3,641.86 4,471.34
Net Worth 2,248.45 3,641.86 4,471.34
Book Value Per Share 228 321 394
Face Value (In Rs.) 10 10 10
Dividend 28% 42.50% 25%
Debt 5,672.09 6,852.95 5231
Equity Capital 2,248.45 3666.51 4527.47
Debt/Equity 2.52 1.88 1.16

Key Financial Ratios

FY17-18 FY18-19 FY19-20
ROE 75.36% 69.15% 86.22%
ROCE 12.54% 11.99% 14.19%

Valuation of Hero Fincorp Ltd. (in Rs)

FY2018 FY2019 FY2020
Outstanding shares 9,84,45,621 11,41,96,921 12,73,06,674
Current Unlisted Price 1000 1000 1000
EPS 15.63 25.97 27
Market Cap 98,44,56,21,000 1,14,19,69,21,000 1,27,30,66,74,000
Price to Earnings (P/E Ratio) 63.98 38.51 37.04
Price to Book (P/B Ratio) 4.39 3.12 2.54

Annual Report Hero FinCorp 2020

Hero FinCorp Latest news

This Diwali Should be good for Hero FinCorp: ABhinayu Munjal

Hero FinCorp may buy Reliance General Insurance 

Disclaimer: The above information is only for educational purposes and should not be taken as a recommendation to buy or sell.
While reasonable endeavors have been made to present reliable data so far as it relates to current and historical information, but we do not guarantee the accuracy or completeness of the said data or information. Please consult your financial advisor before buying or selling any unlisted shares.