Bharat Financial Inclusion Limited is a non-banking finance company (NBFC) licensed by the Reserve Bank of India. Its primary operations are based on providing microfinance products and services such as loans and insurance to the poor.Market Capitalisation
The market capitalisation of Bharat Financial Inclusion Limited, as of early August 2018, is a little over Rs.16,900 crore.
Company’s Wealth and Recent Performance
- For the year ended on March 31, 2018, the company’s total revenue from operations was revealed to be at Rs.2,102 crore, in comparison to Rs.1,728 crore reported for the fiscal year 2016-17. This marks an increase of over 10% in revenue, led by an increase in the interest income from portfolio loans.
- Similarly, the profit after tax for the FY18 was stated to be at Rs.455 crore. Once again, this figure marked a substantial increase over the profit of Rs.290 crore reported for the previous fiscal year. This increase in profit came on the account of a reduction in provision and write-offs, and an increase in the revenue.
- Considering the balance sheet of the company, Bharat Financial Inclusion Limited reported its capital and reserves to be at Rs.2,999 crore - an increase of more than 15% from the Rs.2,447 crore reported at the end of FY17. The company’s total assets also improved by a similar margin to stand at Rs.11,531 crore as of March 31, 2018.
- Considering the asset quality of the company, its Gross NPA (non-performing asset) at the end of FY18 stood at 2.4% in a stark contrast to 6% as reported at the end of FY17. Net NPA also reduced notably from 2.70% to 0.10%, y-o-y. Lastly, its debt-equity ratio stands at 2.5.
Bharat Financial Inclusion Limited Stock Trends in 2018
- On January 2, 2018, the opening price of the Bharat Financial Inclusion Limited was Rs.999.50 on the National Stock Exchange. The price rose by a small margin over the course of the month and the closing price of the scrip, on January 31, 2018, was Rs.1,051.65.
- The price dipped slightly over the course of February and the Bharat Financial Inclusion shares once again found themselves being traded in the Rs.900 territory. The dip was caused by turbulence in the international markets, caused due to the anticipation of a hike in the interest rate by the Federal Reserve. Luckily, the shares didn’t suffer that much and in the final week of February, they rose once again to ascend into the Rs.1,000 territory.
- Unlike other shares which suffered heavily over the course of 2018, the stock price of Bharat Financial Inclusion Limited moved on to outperform its peers. The price rose steadily in March by around 4% to touch the Rs.1,090 mark. In April, the scrip entered the Rs.1,100 territory and the shares were traded at levels varying from Rs.1,130 - Rs.1,190 through the months of May and June.
- The share price continued to exhibit a similar behaviour in July. In the first half of the month, the price dipped by around Rs.20 but this was soon followed by another remarkable increase. In early August, the Bharat Financial Inclusion Limited shares hit their 52-week high at Rs.1,234.80.
Bharat Financial Inclusion Limited Stock Trends in 2016 and 2017
- At the start of 2016, the stock price of Bharat Financial Inclusion Limited was close to Rs.513. Over the course of January and the first half of February, the scrip rose to cross the Rs.550 mark. However, this gradual rise was followed by a bear run which resulted in the shares shedding all their recent gains by the end of February.
- The price rose once again in March and this time, it was a gradual rise which resulted in excellent gains for the investors. The share price of Bharat Financial Inclusion Limited at the end of April was Rs.603 and the same at the end of May 2016 was Rs.650. The stock price continued to soar through June and July as well, with the scrip gaining more than 20% in this period. Towards the end of July, the shares were seen changing hands at levels above Rs.880.
- The price dipped slightly at the start of August and the shares once again descended into the Rs.700 region. Nonetheless, the Bharat Financial Inclusion share price managed to recover by late September and reached its previous levels at above Rs.830. In October, the shares crossed the Rs.900 mark as the investors continued to enjoy the stock’s exceptional bull run.
- In November, post-demonetisation, the shares took a dramatic hit. The Bharat Financial Inclusion Limited shares lost more than 20% in a span of two weeks and by the end of the month, the stock was trading at levels close to Rs.730. The shares plummeted further in December and the closing price at the end of the year was Rs.597.50.
- 2017 started on a positive note for the investors. The share price of Bharat Financial Inclusion limited rose steadily through January and February, thus reaching its previous levels at Rs.850. However, over the course of March and April, the share price declined gradually by a little over 5%. The prices dipped further in May and the closing price on May 31, 2018 was Rs.728.45.
- In the month of June, the Bharat Financial Inclusion Limited shares started a bull run which went on for the rest of the year. By the end of July, the shares had ascended back to their previous levels at Rs.860. The share price continued to rise through August and September, with the scrip crossing the Rs.950 mark at the end of September.
- The prices stabilised slightly in the final quarter of the year. The scrip improved by a little over 5% over the course of the last three months to cross the Rs.1,000 mark. The closing stock price of Bharat Financial Inclusion Limited on December 29, 2017 was Rs.1,000.20.
Should you invest in Bharat Financial Inclusion Limited?
- Bharat Financial Inclusion Limited is an NBFC whose operations are primarily focussed on providing credit and insurance to the poor people, especially women. Its mission is to provide financial services to the economically weaker sections of the society as it aims to alleviate poverty and raise the living standards. Needless to mention, the organisation is giving a lot of importance to the social aspects while ensuring profitability through its business model.
- Considering the financial performance of the company, Bharat Financial Inclusion Limited reported an increase of more than 10% in its revenues with respect to the previous fiscal year. Its revenue at the end of the year stood at Rs.2,100 crore while its profit was reported to be at Rs.455 crore - an increase of more than 40% with respect to the profit for FY17.
- Its asset quality is also reasonable - its Gross NPA count stands at 2.4% while its Net NPA stands at 0.10%. Considering the performance of the stock itself, the Bharat Financial Inclusion Limited shares have moved on to deliver exceptional returns since 2016. The price has more than doubled since the start of 2016 and through the first half of 2018, it has been quite bullish. It is one of the few stocks that has managed to perform well in rocky times.
- The microfinance sector in India is growing at an excellent pace, coupled with the boost in infrastructure and economy of India. As a leading MFI player, Bharat Financial Inclusion Limited is pegged for good growth. At present levels, it does make for an attractive buy although, one may want to wait for the price to drop down further. Whatever may be the case, it is strongly recommended to do your own research before investing.
Bharat Finance Inclusion Limited is a non-banking finance company licensed by the Reserve Bank of India. It provides microfinance services and products to the poor with the aim to alleviate poverty and raise living standards. Its primary objective is to make a social impact by providing financial services to the economically weaker sections of the society. It has partnered with various reputed banks in the country like Andhra Bank, Axis Bank, HDFC Bank, HSBC, State Bank of India, and Yes Bank.
History of the Company
The company, previously known as SKS, was formed in 1997 as an NGO and it wasn’t until 1998 that the organisation commenced its operations. In 2000, it won the CGAP Pro-Poor Innovation award along with a $50,000 prize. The next decade saw the company boost its operations and investments in technology. In 2005, SKC was incorporated as an NBFC and Microfinance Institution (MFI). It moved away from being a non-profit organisation to a profit company. In 2008, SKS was listed as one of the world’s most influential emerging companies and in 2010, it became the first MFI in South Asia to list its shares publicly and launch an IPO.
Management of the Company
Mr. M.R. Rao - Managing Director and Chief Executive Officer
Mr. Rao presently serves as the Managing Director and CEO of Bharat Financial Inclusion Limited - a position he has held since October 2010. He has been a part of the retail finance industry for more than 20 years and has worked with various reputed organisations like American Express, Standard Chartered Bank, Instyle Consumer Leasing, and ING Vysya Life Insurance. He is an alumnus of BITS Pilani and has played an important role in scaling the company’s operations in rural areas.
Mr. Ashish Damani - Chief Financial Officer
Mr. Damani has been serving as the Chief Financial Officer of Bharat Financial Inclusion Limited (formerly known as SKS Microfinance Limited) since February 2014. In addition to this, he also served as the company’s Vice President of Strategy and New Initiatives. He is considerably experienced in the fields of the capital market, accounts, corporate finance, auditing, and advisory services. Prior to joining Bharat Financial Inclusion Limited, he was associated with Fullerton India.
Mr. P.H. Ravi Kumar - Non-Executive Chairperson
Mr. Ravi Kumar presently serves as the Non-Executive Chairperson of Bharat Financial Inclusion Limited. He is also on the Board of Directors of various other organisations such as L&T Investment Management Co. Limited, Bharat Forge Limited, and Escorts Limited. In addition to this, he also worked with the ICICI Bank and served on the governing body of Entrepreneurship Development Institute of India.
Bharat Financial Inclusion Limited Listings in NSE, BSE, and Indices
The equity shares of Bharat Financial Inclusion Limited are available to the general public for trading on the National Stock Exchange of India and the Stock Exchange, Mumbai. The respective codes for the same are as follows:
- NSE Code: BHARATFIN
- BSE Code: 533228
- ISIN: INE180K01011
- Sector: Finance - General
The company does not comprise the country’s benchmark stock market indices like BSE SENSEX and NIFTY. However, it does form a part of the following indices:
- NIFTY 200
- NIFTY 500
- S&P BSE AllCap
- S&P BSE Finance
- S&P BSE SmallCap
- S&P BSE 500
- S&P BSE Dollex - 200
- NIFTY Midcap 150
- S&P BSE SmallCap Select Index
Bharat Financial Inclusion Limited
Unit No. 410
Bandra Kurla Complex
Mumbai - 400-051,
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