🪙 At a Glance
Unifinz Capital has gone from ₹2 Cr in sales in FY22 to ₹121 Cr in FY25. ROE is nearly 50%. But here’s the drama: promoter holding fell from 72% to 25% in a year, new auditors entered the scene after resignations, and it’s trading at 6.8x book. So… rocket ship or red flag?
1. 🚀 WTF Do They Even Do?
- Unifinz Capital is a Non-Banking Financial Company (NBFC) — non-deposit taking, non-systemic.
- They operate under the brand “Lendingplate”, offering personal loans via online platforms and offline branches.
- Present in 224 cities, mostly catering to instant loan seekers (translation: high-risk borrowers, high interest).
2. 💰 Financials – Hypergrowth, Bro?
| Metric | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Revenue (₹ Cr) | 2 | 9 | 30 | 121 |
| Net Profit (₹ Cr) | 1 | -1 | -1 | 20 |
| ROE (%) | 20% | 6% | 10% | 49% |
| OPM (%) | 54% | 11% | 10% | 28% |
✅ 3-year sales CAGR = 278%
✅ TTM Profit Growth = 1860%
⚠️ But yes, net profits only turned positive in FY25.
3. 📊 Valuation – Cheap, Meh, or Crack?
| Metric | Value |
|---|---|
| Stock Price | ₹600 |
| Book Value | ₹87.6 |
| P/B Ratio | 6.85x |
| P/E Ratio (TTM) | 26.5x |
| ROE (TTM) | 49.4% |
| Market Cap | ₹531 Cr |
📉 Compared to peers:
- Bajaj Finance: 35x PE, 6.1x P/B
- Cholamandalam: 32x PE, 5.8x P/B
- Unifinz is priced like the big boys but is a microcap with low float.
📌 Fair Value Range (based on 2.5x–4x P/B & 20–25% sustainable ROE):
- Book Value = ₹87.6
- FV Range = ₹220 to ₹350
👉 Current Price ₹600 = Overvalued AF (unless 2x growth continues)
4. 🐍 What’s Cooking – Auditor Exit, FII Entry
- Auditor Resignation (May 2025): Statutory auditor VR Associates stepped down. New internal and secretarial auditors appointed.
- Promoter Holding Collapse: From 72% → 25% in just 12 months.
- FII + DII Entry: They now hold 11.3% and 8.5% respectively as of Mar 2025.
🧠 Theory: Likely PE/VC or external capital infusion that diluted promoters + opened room for institutions.
🔍 But why did the promoter exit if growth is booming?
5. 💥 Balance Sheet – More Borrowing, More Boom
| Item | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Borrowings (₹ Cr) | 1 | 6 | 26 | 33 |
| Equity (₹ Cr) | 3 | 3 | 3 | 9 |
| Reserves (₹ Cr) | 2 | 2 | 1 | 69 |
| Total Assets | 6 | 17 | 39 | 126 |
📌 Major capital infusion in FY25. Equity base went from ₹3 Cr to ₹9 Cr. Reserves shot up to ₹69 Cr.
6. 💸 Cash Flow – Red Flags?
| Year | CFO (₹ Cr) | FCF Red Flag |
|---|---|---|
| FY23 | -4 | ❌ |
| FY24 | -16 | ❌ |
| FY25 | -30 | ❌❌❌ |
⚠️ Cash flow from operations is negative despite profits. Possibly due to:
- Loan book expansion
- Delays in collections
- Poor working capital control
7. 📉 Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROCE | 47.4% |
| ROE | 49.4% |
| ROA | 24.3% |
| Debt/Equity | ~3.6x |
| OPM (TTM) | 28% |
💥 Profitability? YES
📛 Financial leverage? ALSO YES
🚨 Not for weak hearts or conservative investors.
8. 📦 P&L Highlights – From Nada to Nirvana
- FY22: ₹2 Cr sales, ₹1 Cr profit
- FY23: ₹9 Cr sales, loss of ₹1 Cr
- FY24: ₹30 Cr sales, still loss
- FY25: ₹121 Cr sales, ₹20 Cr profit = Full glow-up mode
But again… cash not keeping up with P&L numbers.
9. 🧠 Shareholding Pattern – Suspicious or Strategic?
| Date | Promoter | Public | FIIs | DIIs |
|---|---|---|---|---|
| Jun 2023 | 72% | 28% | 0% | 0% |
| Mar 2025 | 25% | 55% | 11% | 8.5% |
👀 From tightly held to widely held in 4 quarters. Did the promoters exit the party early?
🧾 EduInvesting Verdict™
Unifinz Capital = Daring + Dangerous
📈 Massive growth
🧠 High ROE/ROCE
💣 High valuation
⚠️ Low promoter skin in the game
📉 Negative cash flows
This one could be a rocket, or a rerun of 5 Paisa meets DHFL. Approach with caution.
Fair Value Range: ₹220–₹350
Current Price: ₹600 = 🚨 Bubble Territory
✍️ Written by Prashant | 📅 27 June 2025
Tags: Unifinz Capital, NBFC stocks, Microcap Rocket, Lendingplate, Auditor Resignation, EduInvesting
