Equitas Holdings Limited

Company Profile:
Equitas Holdings Limited, through its subsidiaries, provides micro finance, used commercial vehicle finance, and housing finance services in India. It engages in extending credit to people who are otherwise unable to access finance from the mainstream banking channels. It also provides finance for the purchase of used commercial vehicles; and housing finance for self-employed and salaried segment of low income households, as well as loans against property, home loans, and home extension loans. Equitas Holdings Limited was founded in 2007 and is based in Chennai, India

Company has announced a 28% growth in net profit to Rs 46.8 Crore in the three months to March.

Total income rose 49 percent to Rs 320.2 crore in the fourth quarter from Rs 215.3 crore in the corresponding period last year.

This is the first quarterly earnings the company is reporting since becoming a publicly traded company last month after a successful IPO that mopped up Rs 720 crore. Its asset grew 53 percent to Rs 6,125 crore for the full year, driven by healthy disbursements in microfinance, used commercial vehicle finance and micro enterprise loans.

Company has been granted in-principle approval by RBI to convert its subsidiaries into a Small Finance Bank.

Equities is well-positioned to sustain the high growth momentum as it’s primary focus is on the undeserved borrower segment.

Considering the company’s presence in high growth niche segment, higher margins and superior execution skills demonstrated by the current management and fantastic track record, one can invest on this company at CMP 145. It’s expected to touch 200 in next 6 to 8 months.

On Monday it may go up due to amazing result announced on 6th of May 16, hence recommended to invest in staggered manner.

Please read this article to know more about  P.N. Vasudevan, MD of Equities Holdings.