BSE:531179

Stock Analysis Report

Executive Summary

Arman Financial Services Limited operates as a non-banking finance company in India.

Snowflake

Fundamentals

Proven track record and slightly overvalued.

Risks

  • Arman Financial Services is not covered by any analysts.

Similar Companies

Share Price & News

How has Arman Financial Services's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.9%

BSE:531179

-3.6%

IN Consumer Finance

-2.1%

IN Market


1 Year Return

-13.1%

BSE:531179

-3.2%

IN Consumer Finance

-14.7%

IN Market

531179 underperformed the Consumer Finance industry which returned -3.1% over the past year.

531179 outperformed the Market in India which returned -14.6% over the past year.


Share holder returns

531179IndustryMarket
7 Day-1.9%-3.6%-2.1%
30 Day-11.2%1.9%-3.9%
90 Day-7.5%-10.2%-10.1%
1 Year-12.9%-13.1%-2.5%-3.2%-12.9%-14.7%
3 Year37.2%35.5%59.3%56.0%17.7%11.5%
5 Year1098.2%1039.4%233.9%218.2%35.4%22.5%

Price Volatility Vs. Market

How volatile is Arman Financial Services's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Arman Financial Services undervalued based on future cash flows and its price relative to the stock market?

11.58x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Arman Financial Services's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Arman Financial Services's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Arman Financial Services is good value based on earnings compared to the IN Consumer Finance industry average.

Arman Financial Services is good value based on earnings compared to the India market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Arman Financial Services, we can't assess if its growth is good value.


Price Based on Value of Assets

Arman Financial Services is overvalued based on assets compared to the IN Consumer Finance industry average.


Next Steps

Future Growth

How is Arman Financial Services expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

-20.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Arman Financial Services is high growth as no revenue estimate data is available.

Arman Financial Services's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Unable to compare Arman Financial Services's revenue growth to the India market average as no estimate data is available.

Arman Financial Services's earnings are expected to decrease over the next 1-3 years, this is below the India market average.

Arman Financial Services's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Arman Financial Services will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Arman Financial Services performed over the past 5 years?

23.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Arman Financial Services has delivered over 20% year on year earnings growth in the past 5 years.

Arman Financial Services's 1-year earnings growth exceeds its 5-year average (201.7% vs 23.4%)

Arman Financial Services's earnings growth has exceeded the IN Consumer Finance industry average in the past year (201.7% vs 15%).


Return on Equity

Whilst Arman Financial Services has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

Arman Financial Services used its assets more efficiently than the IN Consumer Finance industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Arman Financial Services improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is Arman Financial Services's financial position?


Financial Position Analysis

Arman Financial Services is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Arman Financial Services's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Arman Financial Services's level of debt (769.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (222.1% vs 769.8% today).

Operating cash flow is negative therefore debt is not well covered.

Unable to confirm if the interest payments on Arman Financial Services's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.1x debt.


Next Steps

Dividend

What is Arman Financial Services's current dividend yield, its reliability and sustainability?

0.39%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Arman Financial Services before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Arman Financial Services's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.65%).

Arman Financial Services's dividend is below the markets top 25% of dividend payers in India (2.64%).

Arman Financial Services has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Arman Financial Services only paid a dividend in the past 9 years.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (22x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Arman Financial Services's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

Jayendrabhai Patel (68yo)

0.0yrs

Tenure

0

Mr. Jayendrabhai B. Patel has been Managing Director and Vice Chairman of Arman Financial Services Ltd. since October 2005 and serves as its Chief Executive Officer. Mr. Patel Director of Arman Financial S ...


CEO Compensation Analysis

Jayendrabhai's remuneration is lower than average for companies of similar size in India.

Jayendrabhai's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.0yrs

Average Tenure

49yo

Average Age

The tenure for the Arman Financial Services management team is about average.


Board Age and Tenure

10.8yrs

Average Tenure

67yo

Average Age

The average tenure for the Arman Financial Services board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Jayendrabhai Patel (68yo)

    Vice Chairman

    • Tenure: 0.0yrs
  • Aalokbhai Patel (34yo)

    Executive Director

    • Tenure: 9.6yrs
  • Atulkumar Patel (49yo)

    Chief Accountant

    • Tenure: 0.0yrs
  • Rambabu Agarwal (49yo)

    Operations Head of Vehicle Finance

    • Tenure: 0.0yrs
  • Jaimish Patel

    Compliance Officer & Company Secretary

    • Tenure: 3.4yrs
    • Compensation: ₹312.00k
  • Anju Aggarwal (47yo)

    Sales Manager

    • Tenure: 0.0yrs
  • Chandramouli Akkiraju

    Chief Operating Officer

    • Tenure: 2.0yrs
  • Rahul Shah

    Head of Human Resources

    • Tenure: 2.0yrs
  • Vivek Modi

    Chief Financial Officer

    • Tenure: 1.3yrs
  • Prashant Modi

    Department Head of Vehicle Finance Collections

    • Tenure: 3.2yrs

Board Members

  • Rita Patel (63yo)

    Non-Executive Director

    • Tenure: 13.8yrs
    • Compensation: ₹112.50k
  • Jayendrabhai Patel (68yo)

    Vice Chairman

    • Tenure: 0.0yrs
  • Amit Manakiwala (63yo)

    Director Emeritus

    • Tenure: 1.2yrs
  • Aalokbhai Patel (34yo)

    Executive Director

    • Tenure: 9.6yrs
  • Kaushik Shah (71yo)

    Independent Director

    • Tenure: 25.1yrs
    • Compensation: ₹150.00k
  • Aakash Patel

    Non-Executive Director

    • Tenure: 11.9yrs
  • Ramakant Nagpal (69yo)

    Independent Director

    • Tenure: 0.0yrs
    • Compensation: ₹70.00k
  • Mridul Arora

    Non-Executive Additional Director

    • Tenure: 1.3yrs
  • Alok Prasad (67yo)

    Independent Chairman

    • Tenure: 1.6yrs

Company Information

Arman Financial Services Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Arman Financial Services Limited
  • Ticker: 531179
  • Exchange: BSE
  • Founded: 1992
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: ₹2.475b
  • Shares outstanding: 6.95m
  • Website: https://www.armanindia.com

Number of Employees


Location

  • Arman Financial Services Limited
  • 501-504, Sakar III
  • Opposite Old High Court
  • Ahmedabad
  • Gujarat
  • 380014
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
531179BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 1998
ARMANFINNSEI (National Stock Exchange of India)YesEquity SharesININRJul 1998

Biography

Arman Financial Services Limited operates as a non-banking finance company in India. The company offers financing for the purchase of two wheelers. It also provides loans to small and medium enterprises; a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 12:41
End of Day Share Price2019/08/23 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.