Northern ARC Capital Ltd
Founded in 2009, Northern Arc Capital Limited offers retail loans to underserved households and businesses in India.[1]
- Market Cap ₹ 2,732 Cr.
- Current Price ₹ 169
- High / Low ₹ 351 / 163
- Stock P/E 7.84
- Book Value ₹ 205
- Dividend Yield 0.00 %
- ROCE 11.2 %
- ROE 15.0 %
- Face Value ₹ 10.0
Pros
- Stock is trading at 0.82 times its book value
- Company has delivered good profit growth of 25.5% CAGR over last 5 years
Cons
- Though the company is reporting repeated profits, it is not paying out dividend
- Company has low interest coverage ratio.
- Company has a low return on equity of 13.2% over last 3 years.
* The pros and cons are machine generated. Pros / cons are based on a checklist to highlight important points. Please exercise caution and do your own analysis.
Quarterly Results
Consolidated Figures in Rs. Crores / View Standalone
Profit & Loss
Consolidated Figures in Rs. Crores / View Standalone
| Mar 2019 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | TTM | |
|---|---|---|---|---|---|---|
| 602 | 682 | 911 | 1,306 | 1,891 | 2,303 | |
| 135 | 255 | 247 | 419 | 739 | 999 | |
| Operating Profit | 467 | 427 | 663 | 888 | 1,152 | 1,304 |
| OPM % | 78% | 63% | 73% | 68% | 61% | 57% |
| 16 | 3 | 6 | 5 | 15 | 11 | |
| Interest | 303 | 324 | 411 | 559 | 730 | 832 |
| Depreciation | 5 | 7 | 10 | 12 | 17 | 18 |
| Profit before tax | 175 | 100 | 248 | 321 | 420 | 465 |
| Tax % | 34% | 23% | 27% | 25% | 24% | |
| 115 | 77 | 182 | 242 | 318 | 348 | |
| EPS in Rs | 12.65 | 7.68 | 19.40 | 25.83 | 34.49 | 31.13 |
| Dividend Payout % | 0% | 0% | 0% | 0% | 0% |
| Compounded Sales Growth | |
|---|---|
| 10 Years: | % |
| 5 Years: | 26% |
| 3 Years: | 40% |
| TTM: | 45% |
| Compounded Profit Growth | |
|---|---|
| 10 Years: | % |
| 5 Years: | 25% |
| 3 Years: | 66% |
| TTM: | 34% |
| Stock Price CAGR | |
|---|---|
| 10 Years: | % |
| 5 Years: | % |
| 3 Years: | % |
| 1 Year: | % |
| Return on Equity | |
|---|---|
| 10 Years: | % |
| 5 Years: | % |
| 3 Years: | 13% |
| Last Year: | 15% |
Balance Sheet
Consolidated Figures in Rs. Crores / View Standalone
| Mar 2019 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Sep 2024 | |
|---|---|---|---|---|---|---|
| Equity Capital | 78 | 88 | 89 | 89 | 89 | 161 |
| Reserves | 1,014 | 1,412 | 1,568 | 1,784 | 2,142 | 3,155 |
| 3,001 | 4,015 | 6,066 | 7,117 | 9,130 | 9,271 | |
| 186 | 182 | 251 | 381 | 345 | 349 | |
| Total Liabilities | 4,279 | 5,696 | 7,973 | 9,371 | 11,707 | 12,936 |
| 5 | 22 | 24 | 51 | 57 | 59 | |
| CWIP | 3 | 1 | 0 | 1 | 2 | 0 |
| Investments | 1,193 | 1,383 | 1,766 | 1,790 | 1,785 | 1,766 |
| 3,077 | 4,291 | 6,183 | 7,529 | 9,863 | 11,111 | |
| Total Assets | 4,279 | 5,696 | 7,973 | 9,371 | 11,707 | 12,936 |
Cash Flows
Consolidated Figures in Rs. Crores / View Standalone
| Mar 2019 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | |
|---|---|---|---|---|---|
| -336 | -711 | -1,326 | -1,296 | -2,134 | |
| -36 | -201 | -386 | -115 | 36 | |
| 375 | 977 | 2,028 | 928 | 2,045 | |
| Net Cash Flow | 4 | 65 | 317 | -483 | -53 |
Ratios
Consolidated Figures in Rs. Crores / View Standalone
| Mar 2019 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | |
|---|---|---|---|---|---|
| Debtor Days | 10 | 10 | 8 | 8 | 5 |
| Inventory Days | |||||
| Days Payable | |||||
| Cash Conversion Cycle | 10 | 10 | 8 | 8 | 5 |
| Working Capital Days | -9 | -15 | 0 | -24 | -24 |
| ROCE % | 10% | 10% | 11% |
Documents
Announcements
- Disclosures under Reg. 29(2) of SEBI (SAST) Regulations, 2011 5 Mar
-
Announcement under Regulation 30 (LODR)-Earnings Call Transcript
21 Feb - Transcript of earnings conference call for Q3 FY 25.
-
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Outcome
14 Feb - Audio recording of earnings conference call for Q3 FY25.
-
Announcement under Regulation 30 (LODR)-Press Release / Media Release
14 Feb - Northern Arc Capital announces Q3FY25 financial results.
-
Announcement under Regulation 30 (LODR)-Change in Management
14 Feb - Board approved Q3 results and director's continuation.
Annual reports
Concalls
-
Feb 2025Transcript PPT REC
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Oct 2024Transcript PPT
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Oct 2024Transcript PPT
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Oct 2024TranscriptPPTREC
Business Profile[1] Northern ARC Capital is a diversified financial services platform addressing credit needs of underserved households and businesses in India. Over the past 15 years, it has facilitated financing of over ₹1.73 lakh crore, impacting 10.18 crore lives.