Came across Mufin Green Finance again because of their new secured NCDs (the ~11% monthly payout ones), and realised we don’t have a dedicated thread. Putting down what I’ve understood so far — others please add/ correct.
Mufin is basically an EV-focused NBFC. Their main business is financing electric 3-wheelers, e-autos, e-rickshaws, and even batteries in some cases. They’ve grown very fast over the last couple of years. Their annual report shows AUM moving from roughly ₹480–500 crore in FY22 to more than ₹2,500 crore in FY23, which is a pretty big jump for a mid-sized lender. Profit numbers haven’t grown at the same pace though — FY23 PAT is just around ₹8 crore, similar to the previous year.
They’re present in multiple states now (I think 14 states, 150+ locations), and from the looks of it most of the business still comes from north and central India. The rating report I read (Acuite A- Stable) mentioned that the EV lending segment is still relatively new, so actual collection behaviour over long cycles isn’t fully tested yet. They’ve been maintaining okay asset quality for now, but the challenge will be whether this holds when the book seasons.
One thing I couldn’t figure out entirely is the real resale value of EV assets. The NCDs are “secured”, but the underlying collateral is basically the EV loans. The battery-powered vehicles have uncertain second-hand values, which means recovery value may not be as strong as a typical auto loan portfolio. If anyone has more insight into resale cycles for e-rickshaws or e-autos, would love to understand that better.
The upcoming NCD itself is short-tenor (around 15–18 months depending on the series), which I actually prefer for a name growing this fast. Monthly payout at ~11% is good, especially for a secured structure, but with rapid growth I think leverage and credit costs need to be watched closely. Their net worth is roughly ₹150 crore range, so the scale vs equity buffer is something to keep in mind.
Another point the rating note highlighted was that maintaining asset quality while scaling is the key monitorable. Makes sense, because the whole model depends on collections continuing smoothly even when the book doubles every year.
Not invested yet, but curious to know if anyone here has tracked their earlier issuances or has data on vintage performance. If their early EV loans are behaving well after 12–24 months, that would be useful to know. Also, any views on how the company is placed vs other EV-focused NBFCs (like Three Wheels United, Revfin etc.) would help.
Posting this so that we can get a more complete picture before forming an opinion on their bonds.
Disc: Tracking only.