1. At a Glance
From once being a commodities trader to now juggling broking, lending, and asset management, Abans Financial Services Ltd (AFSL) is reinventing itself more often than a crypto influencer. With a PE of 10.9 and market cap of ₹1,100 Cr, this small-cap dynamo has big ambitions—just don’t ask about the dividends.
2. Introduction with Hook
Imagine a juggler on a tightrope—now hand him derivatives, client accounts, and an RBI circular. That’s Abans Financial Services for you. A former trader turned financial conglomerate, AFSL now does broking, lending, asset management, and even remittance services. It’s like trying to be HDFC, Zerodha, and Western Union in one lifetime.
- CAGR profit growth (5Y): 24%
- Quarterly Sales YoY (Q4FY25): +321%
Also… EPS is up. Dividends are down. Suspicious?
3. Business Model (WTF Do They Even Do?)
Let’s simplify their Hydra-headed model:
Agency Business
– Institutional and retail broking (multi-asset)
– Portfolio advisory
Finance Business
– NBFC activities (loans against shares, working capital, etc.)
Capital Business
– Proprietary trading
– Treasury ops
– Strategic investments
Special Sauce?
– Heavily tech-driven trading platforms and algo execution
– Cross-border remittance desks
– A bit of everything. Like a buffet. But with leverage.
4. Financials Overview
| Metric | FY23 | FY24 | FY25 (Est) |
|---|---|---|---|
| Revenue (₹ Cr) | 1,163 | 1,380 | 3,281 |
| Net Profit (₹ Cr) | 70 | 89 | 109 |
| EPS (₹) | 12.92 | 16.30 | 20.15 |
| ROE (%) | 10 | 10 | 10.17 |
| ROCE (%) | 8 | 9 | 9.68 |
| Book Value (₹) | ~212 | ~220 | 225+ |
✅ Revenue up 2.4x in 2 years
✅ EPS up 55% in 2 years
❌ Still no dividends
5. Valuation
Let’s play everyone’s favorite game: What’s This Stock Worth?
- Book Value: ₹212
- Current Price: ₹220
- PE Ratio: 10.9
- Industry Median PE: 24+
Fair Value Estimate:
| Method | Estimate Range (₹) |
|---|---|
| PE-based (15–20x) | 275 – 360 |
| Book Value (1.5x–2x) | 315 – 425 |
| DCF (Aggressive) | 350 – 390 |
Fair Value Range: ₹275 – ₹390
(If they can sustain profit growth and clean up balance sheet.)
6. What’s Cooking – News, Triggers, Drama
- Series A in Subsidiary: ₹150 Cr raised by AIMPL (Jul 2024)
- MOA/AOA Overhaul: April 2024 – Big strategic pivot?
- Auditor Resignation (May 2024): Classic red flag.
- WhatsApp scam alert (Jan 2024): “This is not us!” – AFSL
- CEO Appointed (Aug 2023): Chintan Mehta steps in. Younger blood?
High revenue growth + active restructuring + minor governance drama = spicy momo with a side of SEBI sauce.
7. Balance Sheet
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital (₹ Cr) | 10 | 10 | 10 |
| Reserves (₹ Cr) | 817 | 921 | 1,064 |
| Borrowings (₹ Cr) | 441 | 929 | 834 |
| Total Liabilities (₹ Cr) | 1,863 | 2,897 | 3,060 |
| Total Assets (₹ Cr) | 1,863 | 2,897 | 3,060 |
Key Observations:
– Borrowings doubled in FY24
– Net worth rising, but asset-heavy growth
– No dividend. Not even a mithai box.
8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Flow |
|---|---|---|---|---|
| FY23 | 211 | -466 | 418 | +163 |
| FY24 | 45 | -446 | 403 | +1 |
| FY25 | -119 | 210 | -150 | -58 |
– Cash burn in FY25
– Financing flows drying up
– Signs of capital recycling (read: leverage rollover?)
9. Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROE (%) | 10 | 10 | 10.2 |
| ROCE (%) | 8 | 9 | 9.68 |
| Debt-to-Equity | 0.54 | 1.01 | 0.78 |
| Debtor Days | 78 | 58 | 37 |
| OPM % | 7 | 11 | 6 |
– ROE is stable (but meh)
– Debtor days falling = GOOD
– OPM dropped = BAD
– D/E Ratio bloating = UGLY
10. P&L Breakdown – Show Me the Money
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue (₹ Cr) | 1,163 | 1,380 | 3,281 |
| Expenses (₹ Cr) | 1,078 | 1,228 | 3,091 |
| Operating Profit | 86 | 152 | 189 |
| OPM % | 7% | 11% | 6% |
| Net Profit (₹ Cr) | 70 | 89 | 109 |
| EPS (₹) | 12.9 | 16.3 | 20.1 |
The good: Topline on steroids
The bad: Margins on caffeine withdrawal
The ugly: Still hoarding cash like a dragon
11. Peer Comparison
| Company | CMP (₹) | P/E | ROE (%) | Sales (₹ Cr) | PAT (₹ Cr) | D/E |
|---|---|---|---|---|---|---|
| Bajaj Finserv | 2,026 | 36.4 | 13.4 | 1.33L | 8,885 | 0.17 |
| Bajaj Holdings | 14,100 | 24.1 | 11.2 | 684 | 6,520 | 0.08 |
| JM Financial | 169 | 20.9 | 8.5 | 4,378 | 774 | 0.96 |
| Choice Intl. | 756 | 96.3 | 18.9 | 910 | 157 | 1.2 |
| Abans Financial | 220 | 10.9 | 10.2 | 3,281 | 109 | 0.78 |
– Cheapest in peer group by PE
– Earnings catching up, perception lagging
– Risk = corporate governance surprises
12. Miscellaneous – Shareholding, Promoters
| Category | Mar 2025 |
|---|---|
| Promoters | 71.48% |
| FIIs | 15.11% |
| DIIs | 0.01% |
| Public | 13.41% |
– FII interest rising steadily
– Promoter dilution minimal
– DII holding almost nonexistent (they said “nah bro”)
– Auditor resignation in sub = 👀
13. EduInvesting Verdict™
Abans Financial Services Ltd is what happens when a trading firm eats a broking startup and washes it down with NBFC juice. The company is growing fast, morphing faster, and signaling big ambitions via its Series A and MOA changes.
But…
– Weak governance track record
– Auditor resignations and zero dividend
– CFO losses creeping in FY25
If you’re a fan of high-beta small caps with multibagger potential and mild risk of regulatory facepalms—this one’s your jam. Otherwise, maybe wait till they stop changing Articles of Association more often than their CEOs.
Metadata
– Written by EduInvesting Research | 18 July 2025
– Tags: Abans Financial, NBFC, Multicap Fintech, Broking, SEBI Watchlist, Smallcap Watch, Growth vs Governance
