At a Glance
Apollo Finvest (AFL) is that quirky NBFC that decided to ditch the old-school paperwork and went full fintech, offering a B2B2C digital lending platform to 50+ fintechs. It processes loans of “any size” at near-zero cost. Sounds like a fintech fairytale, right? Well, the stock trades at ₹519, market cap ₹194 Cr, with an ROE of 11.3% and a P/E of 27x – not bad, not cheap. However, revenues are as moody as the monsoon, with 1% CAGR over 5 years. Investors are stuck between: Is this a stealth growth play? or Is this just a tech-flavored value trap?
Introduction
Apollo Finvest is the poster child for how NBFCs can reinvent themselves. Unlike traditional lenders, AFL doesn’t just lend; it’s the tech backend for fintechs, offering a plug-and-play loan processing platform. It has disbursed 1.7 million loans, which sounds impressive until you realize revenue hasn’t kept pace.
While peers like Bajaj Finance ride the loan growth rocket, Apollo is still testing its boosters. It has excellent margins at times (69% OPM highs), yet profits and revenues fluctuate like a cricket score in rain-affected matches. And just to spice things up, it loves raising funds via NCDs, keeping debt cycles active.
Business Model (WTF Do They Even Do?)
Apollo Finvest is a non-deposit-taking NBFC offering
