Been going through Shri Ram Finance Corporation Pvt Ltd’s FY25 annual report, especially since their Non-Convertible Debentures (NCDs) recently got listed on the BSE debt segment. Couldn’t find much conversation around them, so putting down a quick summary for anyone who’s been tracking the name or holding their papers.
Quick FY25 numbers
AUM: ₹1,266 crore
Disbursements: ₹8,231 crore during the year, quite a churn for a book this size.
PAT: ₹55.5 crore
Total income: ₹315 crore
Net owned funds: ₹295.8 crore
GNPA / NNPA: 2.88% / 1.99%, a small uptick from last year. Not alarming, but something to watch.
CRAR: 25.08% (Tier 1 at 21.18%)
Debt-to-equity: 3.84x
Branches: 240 across eight states: Chhattisgarh, Madhya Pradesh, Maharashtra, Andhra Pradesh, Jharkhand, Odisha, Rajasthan, and Uttar Pradesh.
Business model
The company lends mainly to MSMEs and small business owners for income-generating activities, with some exposure to vehicle loans and a smaller personal loan segment for salaried or government employees. Their presence is tilted toward the semi-urban and rural belt, which aligns with their borrower base.
Early thoughts
Capital adequacy looks comfortable and provides a buffer.
The wide branch network should support collections and business sourcing.
GNPA has crept up slightly but remains below 3 percent, which is acceptable for their segment.
The high disbursement turnover stands out; they rely on continuous funding access, making liquidity management and banking relationships crucial.
If I ever look at their NCDs more seriously, I’d want to check the security cover and charge registration details—trust but verify.
Questions for the forum
Has anyone tracked their past NCDs? Were interest payouts and trustee communications smooth?
Any insights on collection trends in Madhya Pradesh or Chhattisgarh, since a large part of the book comes from there?
Any visibility into 30-day and 60-day delinquency movement for recent vintages?
For those who’ve tried trading their bonds, how’s the secondary market liquidity? Do these actually trade, or just sit untouched after placement?
Disc: Not invested. Just sharing insights from the FY25 annual report and hoping others who follow the company can add more ground-level perspectives.