BSE:533228

Stock Analysis Report

Bharat Financial Inclusion

Executive Summary

Bharat Financial Inclusion Limited, a non-banking financial company - micro finance institution, provides micro finance services to women in the rural areas in India who are enrolled as members and organized as joint liability groups.

Snowflake

Fundamentals

Exceptional growth potential with proven track record.

Risks

  • Bharat Financial Inclusion has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0.6%

BSE:533228

-3.6%

IN Consumer Finance

-2.1%

IN Market


1 Year Return

-24.0%

BSE:533228

-3.2%

IN Consumer Finance

-14.7%

IN Market

533228 underperformed the Consumer Finance industry which returned 22.9% over the past year.

533228 underperformed the Market in India which returned 0.5% over the past year.


Share holder returns

533228IndustryMarket
7 Day0.6%-3.6%-2.1%
30 Day-8.3%1.9%-3.9%
90 Day-18.5%-10.2%-10.1%
1 Year-24.0%-24.0%-2.5%-3.2%-12.9%-14.7%
3 Year19.4%19.4%59.3%56.0%17.7%11.5%
5 Year254.1%254.1%233.9%218.2%35.4%22.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

4%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Bharat Financial Inclusion's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Bharat Financial Inclusion's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

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

Bharat Financial Inclusion is good value based on earnings compared to the India market.


Price Based on Expected Growth

Bharat Financial Inclusion is good value based on expected growth next year.


Price Based on Value of Assets

Bharat Financial Inclusion is overvalued based on assets compared to the IN Consumer Finance industry average.


Next Steps

Future Growth

How is Bharat Financial Inclusion expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

29.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Bharat Financial Inclusion's revenue is expected to grow significantly at over 20% yearly.

Bharat Financial Inclusion's earnings are expected to grow significantly at over 20% yearly.

Bharat Financial Inclusion's revenue growth is expected to exceed the India market average.

Bharat Financial Inclusion's earnings growth is expected to exceed the India market average.

Bharat Financial Inclusion's earnings growth is expected to exceed the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Bharat Financial Inclusion is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Bharat Financial Inclusion performed over the past 5 years?

31.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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

Bharat Financial Inclusion's 1-year earnings growth exceeds its 5-year average (116.2% vs 31.8%)

Bharat Financial Inclusion's earnings growth has exceeded the IN Consumer Finance industry average in the past year (116.2% vs 14.3%).


Return on Equity

Whilst Bharat Financial Inclusion 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

Bharat Financial Inclusion 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 Bharat Financial Inclusion 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 Bharat Financial Inclusion's financial position?


Financial Position Analysis

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

Bharat Financial Inclusion's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Bharat Financial Inclusion's level of debt (113.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (333.5% vs 113.1% today).

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

Unable to confirm if the interest payments on Bharat Financial Inclusion'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 2x debt.


Next Steps

Dividend

What is Bharat Financial Inclusion's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Bharat Financial Inclusion's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Bharat Financial Inclusion's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Bharat Financial Inclusion has not reported any payouts.

Unable to verify if Bharat Financial Inclusion's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Bharat Financial Inclusion has not reported any payouts.


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 Bharat Financial Inclusion's salary, the management and board of directors tenure and is there insider trading?

7.1yrs

Average management tenure


CEO

M. Rao (55yo)

8.8yrs

Tenure

₹41,605,000

Compensation

Mr. M. Ramachandra Rao has been the Chief Executive Officer and Managing Director at Bharat Financial Inclusion Limited since October 4, 2010 and its President since August 2016. Mr. Rao served as Deputy C ...


CEO Compensation Analysis

M.'s remuneration is about average for companies of similar size in India.

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


Management Age and Tenure

7.1yrs

Average Tenure

47yo

Average Age

The average tenure for the Bharat Financial Inclusion management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

5.0yrs

Average Tenure

56yo

Average Age

The tenure for the Bharat Financial Inclusion board of directors is about average.


Insider Trading

No 3 month individual insider trading information.


Recent Insider Transactions

Sell₹5,892,23930 Mar 19
Ramesh Allaparthi
EntityIndividual
Shares5,300
Max Price₹1,111.74
Sell₹1,008,00030 Mar 19
Kontham Vijaya
EntityIndividual
Shares900
Max Price₹1,120.00
Sell₹3,272,74130 Mar 19
Kanchan Pandhre
EntityIndividual
Role
Senior Key Executive
Chief of Internal Audit
Shares2,900
Max Price₹1,128.53
Sell₹2,768,50030 Mar 19
M. Kumar
EntityIndividual
Shares2,450
Max Price₹1,130.00
Buy₹3,141,44229 Sep 18
P.S. Srinivasu
EntityIndividual
Shares3,000
Max Price₹1,047.15

Ownership Breakdown


Management Team

  • P. Kalyanachakrawarthy

    Chief Accountant

    • Tenure: 18.5yrs
  • Srinivas Vudumula (51yo)

    Chief People Officer

    • Tenure: 5.4yrs
    • Compensation: ₹6.70m
  • Kanchan Pandhre (43yo)

    Chief of Internal Audit

    • Tenure: 0.0yrs
    • Compensation: ₹3.29m
  • M. Rao (55yo)

    MD, CEO

    • Tenure: 8.8yrs
    • Compensation: ₹41.61m
  • Ashish Damani (40yo)

    Chief Financial Officer

    • Tenure: 5.4yrs
    • Compensation: ₹9.81m
  • Jammalamadaka Sai

    Chief Marketing & Communications Officer

    • Tenure: 0.0yrs
  • Srinivas Peddada

    Chief Information Officer

    • Tenure: 0.0yrs
  • Rajendra Patil (47yo)

    Senior EVP of Legal

    • Tenure: 0.0yrs
    • Compensation: ₹9.07m
  • Ashish Pipaliya

    Senior Executive Vice President of Investor Relations & New Initiatives

    • Tenure: 0.0yrs
  • Dhrumil Dalal

    Chief Technical Officer

    • Tenure: 0.0yrs

Board Members

  • Geoff Chester Woolley (59yo)

    Independent Director

    • Tenure: 13.3yrs
    • Compensation: ₹5.38m
  • Hayagreeva Puranam (68yo)

    Non-Executive Chairman

    • Tenure: 5.4yrs
    • Compensation: ₹5.48m
  • Punita Kumar-Sinha (57yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: ₹5.23m
  • M. Rao (55yo)

    MD, CEO

    • Tenure: 8.8yrs
    • Compensation: ₹41.61m
  • Srinivasan Balachandran (73yo)

    Independent Director

    • Tenure: 5.0yrs
    • Compensation: ₹5.78m
  • Tarun Khanna (52yo)

    Independent Director

    • Tenure: 11.4yrs
    • Compensation: ₹3.95m
  • Ashish Lakhanpal (45yo)

    Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: ₹825.00k
  • Rajender Malla

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: ₹5.73m
  • Sanjay Jain (50yo)

    Nominee Director

    • Tenure: 1.0yrs

Company Information

Bharat Financial Inclusion Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bharat Financial Inclusion Limited
  • Ticker: 533228
  • Exchange: BSE
  • Founded: 1997
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: ₹125.970b
  • Shares outstanding: 140.25m
  • Website: https://www.bfil.co.in

Number of Employees


Location

  • Bharat Financial Inclusion Limited
  • My Home Tycoon
  • 3rd Floor
  • Hyderabad
  • Andhra Pradesh
  • 500016
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
533228BSE (Mumbai Stock Exchange)YesEquity SharesININRAug 2010
BHARATFINNSEI (National Stock Exchange of India)YesEquity SharesININRAug 2010

Biography

Bharat Financial Inclusion Limited, a non-banking financial company - micro finance institution, provides micro finance services to women in the rural areas in India who are enrolled as members and organiz ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/07 12:53
End of Day Share Price2019/07/02 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.