1. At a Glance

Baid Finserv Ltd is the neighborhood moneylender who upgraded from “bahi-khata” to Tally ERP but still dreams of becoming Bajaj Finance. With a market cap of ₹139 Cr, price ₹11.6, book value ₹14.9, and P/E 9.7, the company looks cheap at first glance. But remember – cheap doesn’t always mean value, sometimes it just means “clearance sale.” Their AUM is ₹336 Cr (9MFY24), with 93% skewed toward Loan Against Property (LAP) – basically giving money against people’s land and shops. Profits have grown to ₹14 Cr FY25, but promoter holding is just 36% (low for an NBFC), debt is ₹255 Cr, and interest coverage is a thin 1.6x.

2. Introduction

Picture this: you’re in Jaipur, sipping lassi, and a Baid Finserv agent is convincing a kirana shop owner that his shop is “collateral gold.” That’s their business model. Founded as Baid Leasing, they transformed into Baid Finserv – adding jazzy fintech vibes to what is still an old-school NBFC model.

Unlike the flashy unicorns, Baid’s operations are deeply regional. Rajasthan is their fortress, Madhya Pradesh their testing ground, and Gujarat recently joined the party with new branches. Ambition? Expand to 100 branches by 2026, ₹600 Cr AUM. That’s still smaller than Bajaj Finance’s daily disbursement numbers. But hey, every chai stall owner dreams of becoming Starbucks.

The good part: collection efficiency at 95%, NNPA at 0.4%, which means they aren’t handing out loans like prasad yet. The risky part: concentration in LAP. If property values go south, this NBFC could feel like a Jenga tower mid-collapse.

3. Business Model (WTF Do They Even Do?)

Baid’s offerings look like a buffet where 90% customers only order paneer butter masala:

• Vehicle Loans (7%): Cars, tractors, commercial vehicles. (Traditional NBFC territory.)
• Mortgage Loans (92%): Loan Against Property, MSME loans up to ₹25 lakh. (This is their bread, butter, and achar.)
• Insurance (1%): Add-on products like motor and life insurance, but revenue impact negligible.

Branches: 40+ in Rajasthan, MP, and new ones in Gujarat. By FY26, they want 100 branches across 4 states. Customer base: 50,000+, though only 6,500 are active. Basically, most customers already cleared their loans and moved on.

Tie-ups: Partnerships with SBI, ICICI, AU SFB, Muthoot, Tata Capital, etc. That means Baid borrows from these guys and lends to small businesses – the classic NBFC middleman model.

4. Financials Overview

Quarterly Snapshot (₹ Cr)

Annual Snapshot (₹ Cr)

Commentary: Steady growth, nothing explosive. PAT margin at ~16%. Debt increased, but NPAs under control.

5. Valuation – Fair Value RANGE

1. P/E Method
   • EPS = ₹1.2
   • Apply 8–12x (small NBFC, concentrated risk).
   • FV = ₹10 – ₹14.
2. P/BV Method
   • BV = ₹14.9
   • Small NBFCs trade at 0.6–1.0x.
   • FV = ₹9 – ₹15.
3. EV/EBITDA
   • EV = ₹378