Bharat Financial Inclusion Ltd. share price target

Bharat Financial Inclusion Ltd (BFIL), for Q1FY19, continued to report good set of numbers with the non-AP loan book growing 43.7% YoY to 13,832 crore as on 30 Jun'18, the fastest growth post-demonetisation. Net interest income and preprovisioning profit grew by 70% and 56%, respectively. With a 207bps YoY decline in cost-income ratio (CI%) and lower credit cost, the net profit grew at a robust pace of 196% (2.9x) to 142 crore. Asset quality remained healthy with the gross NPAs at 0.3% and net NPAs at 0.1%, as on 30 Jun'18. Recommendation: Since our last update (Hold: Q4FY18 @ 1,145 on 27 Apr'18), the stock of BFIL achieved our then target price of 1,240 and corrected to 1,204...

Robust loan growth at pre-demonetisation pace: The disbursements growth remained robust at 47.1% YoY in Q4 at 5,738 crore (FY18 growth of 26% to 18,472 crore). The gross loans grew 37.6% to 12,594 crore as on 31 Mar'18. The growth was driven by new customer additions active borrowers up 16% YoY and addition of 938 new borrowers in Q4 (up 123% YoY) vs. 421 in Q4 last year and 751 in Q3FY18. The company further plans to expand to 4 more states in FY19 with a total of initial 5 branches in each Gujarat, Tamil Nadu, Assam and Tripura. BFIL expects 2-wheeler and housing loans to pick up in FY19. For FY19, the...

Operating Income increased by 7.06% to Rs. 539.16 Cr in Q4FY18 when compared to the previous quarter. Bharat Financial Inclusion Ltd Q4FY18 results Comment

Loan growth picking up pace: After several quarters of slower growth in disbursements and loans, the same grew at a robust pace of 58.1% to 4,712 crore and 34.4% to 11,466 crore, respectively as on 31 Dec'17. Additionally, of the total gross loan book, only 10% is pre-demonetisation era, rest all has been disbursed post 1 Jan'17 and has 99.8% collection efficiency. This builds further comfort in the growth going ahead management guidance of ~30% sustainable in the long term. BFIL has maintained their guidance of disbursements at 19,500 crore and gross loan book at 13,500 crore for FY18. Over FY17-20E, the loan book is...

BHAFIN reported 2QFY18 PAT of INR1.2b (3% miss), driven by a healthy uptick in net income (+4% beat), offset by higher-than-expected credit costs. We believe that a post-demonetization recovery is taking root, and is likely to continue in the coming quarters. AUM grew 17% YoY to INR106b, reflecting an upward trajectory for the second consecutive quarter. This, coupled with the fact that active borrowers Financials & Valuations (INR m)...

Operating Income increased by 11.78% to Rs. 411.18 Cr in Q1FY18 when compared to the previous quarter Operating Income increased by 11.78% to Rs. 411.18 Cr in Q1FY18 when compared to the previous quarter

Microfinance has become an effective tool that can help bringing economic equilibrium and reduce poverty. Bharat Financial ltd is one company that spread economic opportunity by giving poor people access to financial services, such as credit and insurance. Bharat Financial Inclusion is the largest microfinance company in India in terms of gross loan portfolio. The company's core business is providing small value loans and other basic financial services to its customers, who are predominantly located in rural areas. The company provides loans mainly for use in small businesses or for other income generating activities and not for personal consumption. BHARAT FINANCE has an AUM of over INR8500....

Bharat Financial's (BHAFIN) 1QFY17 PAT grew 286% YoY and 180% QoQ to INR2.4b (v/s est. of INR2.0b). Strong AUM growth (76%YoY), improving funding cost (marginal CoF of 9.7%), lower cost-to-income ratio (down 670p YoY at 45.7%) and MAT credit entitlement (INR1.3b) were the key highlights for the quarter. AUM during the quarter grew at a notable pace of 76% YoY and 10% QoQ, driven by 38% YoY growth in customer additions, coupled with a 25% increase in ticket size (INR17k) to income generating loans (IGL). Notably, the RBI revised the regulation allowing for higher ticket sizes, which led to BHAFIN focusing on shortterm loans. Long-term loans constituted 11% of disbursement in the quarter...

Having emerged resiliently from the AP crisis and now armed with a diversified regional presence, sizeable scale , Bharat Financial Inclusion delivered robust growth in FY 16 Company has reduced the interest rate charged to borrowers from 20.75% to 19.75% on income generating loans extended on or after 07 December 2015. With this reduction, Bharat financial charges the lowest interest rate among private MFIs in the world. During FY16, company witnessed robust growth in disbursements, which grew 75% over the last year to ` 12088 crores, while Gross Loan Portfolio grew 84% Y-O-Y to `7677 crores. Company also had robust growth in Net Interest Income, which grew by 69% over the last year....

this does not factor in the rising risk in the portfolio. With rising levels of indebtedness (drivenbyrapidgrowthintheloanbook),aproactiveprovisionbuffercanprovidestability to the portfolio. An analysis of the average loan loss for various players over a period...

SKS Microfinance's (SKSM) net income for 4QFY16 was in line with our estimate, while PAT at INR845m, up 108% YoY and 6% QoQ, came in lower than our M.Cap. (INR b) / (USD b) 76.0/1.1...

(to optimize operating cost on a portfolio basis) and initiatives such as cross selling will translateintoarobust70%CAGRinPBT.PATislikelytosee52%CAGRbetweenFY1517(as the company will have to pay MAT from FY16). We expect ROA to remain upwards of 4%...

SKS Micro Finance's Q1FY16 PAT of Rs 620mn was above our estimate of Rs 510mn. Business growth continued, driven by an increase in average ticket size due to the rising proportionoflongtermloans.Therefore,whiletheaverageloanperborrowerincreased,it...

Disbursement increased by 58% YoY & 62% QoQ to Rs25bn, taking the loan book to Rs29bn.LoanbookregisteredaYoYgrowthof91%&QoQby7%. NIMdeclinedby180bpsYoYto10.1%and40bpsQoQto10.1%owingtofactorslike:...