At a Glance
AD Manum Finance Ltd, the tiny NBFC that thinks it’s too cool for dividends, just reported a 113% jump in quarterly profit. Yes, the numbers are shining, but the stock price is still sulking at ₹69.4 – down 2.24% as of August 1. Despite trading at just 0.65x its book value and a P/E of 4.7, Mr. Market treats it like that forgotten cousin at weddings. Low growth, high margins, and zero payouts – a perfect recipe for testing investor patience.
Introduction
Imagine a company that makes money lending but spends like a monk. That’s AD Manum Finance. Incorporated in 1986, it’s a category-B NBFC that also dabbles in wind power. Yes, wind turbines + loans – sounds like an identity crisis waiting for therapy. Despite its modest market cap of ₹52 crore, the company has been consistently profitable, just not flashy enough to attract the bulls.
Investors have been waiting for a growth spurt, a dividend, or at least some corporate drama. Instead, AD Manum has been playing the slow and steady card – reporting profits with Olympic-level consistency while its revenue inches forward like a snail on vacation. With Q1 FY26 profits doubling, is the tide finally turning, or is it just another teaser?
Business Model (WTF Do They Even Do?)
AD Manum Finance is in the business of lending (short-term and long-term) and wind power generation. The NBFC side deals with loans to small businesses, individuals, and other entities. It earns interest income and thrives on its efficient working capital management (debtor days have dropped to 42).
The wind power arm is the side hustle – small but adding a green touch to its portfolio. The company keeps operations lean, maintaining high operating margins (~90%). But there’s a twist: low revenue growth (only 6% over the last five years) and a history of skipping dividends make investors wonder if management’s strategy is “profit hoarding.”
In simple words: it’s a lender with a clean balance sheet but zero pizzazz.
Financials Overview
For Q1 FY26, the company delivered sales of ₹3.19 crore and net profit of ₹3.78 crore, a sharp jump from ₹1.77 crore last year. EPS jumped to ₹5.04 for the quarter, meaning annualized EPS could hit ₹20+, giving a P/E of just 3.5 (dirt cheap).
Annual FY25 numbers:
- Revenue: ₹14 crore (YoY +7%)
- PAT: ₹11 crore (YoY +22%)
- EBITDA Margin: ~90% (insanely high for an NBFC)
- ROE: 12% (decent but not thrilling)
Despite strong profitability, the company hasn’t paid dividends in years. Cash from operations has been inconsistent, with some years showing negative numbers due to working capital swings. Investors see the undervaluation, but the lack of growth and payouts keeps the stock in the shadows.
Valuation
Let’s get our calculators out:
- P/E Method:
