1. At a Glance
Some companies make money. Some companies make sense. Haryana Financial Corporation Ltd (HFC) does neither—but still somehow commands a market cap of ₹1,848 crore with a share price of ₹89 as of October 2025. Incorporated in 1951 to provide loans to Haryana’s industrial sector, it stopped loan sanctioning in May 2010. Yes, you read that right—15 years of doing literally nothing productive, yet the stock has returned +254% in one year.
The Book of Ecclesiastes says, “All is vanity and a chasing after the wind.” If ancient wisdom ever met modern Indian markets, HFC is the perfect proof. The company has zero debt, zero lending, zero interest coverage, and almost zero business activity. But still, the stock’s up more than any PSU lender this year.
Revenue in FY25? Just ₹0.42 crore. Profit? A majestic loss of ₹1.05 crore. Still, the market has decided that this sleeping relic deserves a valuation higher than many mid-cap banks. Why? Because in the stock market, curiosity often beats logic.
2. Introduction
What do you get when you cross a defunct PSU, a government file waiting for closure, and a hyperactive retail investor community? Haryana Financial Corporation Ltd—the Lazarus of financial institutions that refuses to die quietly.
Once envisioned as Haryana’s very own development finance institution, HFC’s job was to lend to small and medium industries. But after decades of non-performing loans and bureaucratic inertia, the company simply gave up lending in 2010. Since then, it has been on life support—recovering old dues, renting out property, and collecting interest on its own deposits.
And yet, despite negative margins (-5,629%) and no lending operations, the market has rewarded it like it’s the next IRFC. With 99.36% promoter holding, the free float is negligible—meaning a few bored traders can send it to the moon while the government quietly writes its obituary.
So here we are: a PSU with no revenue engine, an ongoing delisting process, and an official recommendation for liquidation, still flaunting a ₹1,800 crore valuation. If irony had a balance sheet, this would be it.
3. Business Model – WTF Do They Even Do?
At this point, “business model” is a polite overstatement. Haryana Financial Corporation used to be in the business of providing term loans to industrial units in Haryana. It was supposed to boost entrepreneurship, create jobs, and industrialize the state. That dream died somewhere around 2010, when loan defaults piled up and HFC ran out of gas (and borrowers).
Today, the corporation’s business model looks something like this:
- Collect rent from properties it owns – roughly 53% of FY23 revenue.
- Earn interest on leftover deposits – 36% of income.
- Recover ancient dues from defaulters (2–9% contribution, depending on who still remembers them).
- Wait for liquidation – currently the most consistent part of its operations.
It’s the corporate equivalent of that uncle who retired 15 years ago but still goes to the office for tea and nostalgia.
As of FY23, the Haryana Government has appointed the MD of HSIIDC as the Nodal Officer for liquidation, and SEBI has approved the delisting process, subject to conditions. Translation: the company is being slowly turned off, but nobody wants to unplug it yet.
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