1. At a Glance
Abirami Financial Services (AFSL) is an NBFC so small you could fit its market cap in Bajaj Finance’s petty cash. Still, it posted ₹12.8 Lakh profit in Q1 FY26 and is doling out a 7.5% dividend, because why not?
2. Introduction
Imagine running a finance company where “sales” are basically zero, but you still declare dividends to keep shareholders awake. Welcome to AFSL – the NBFC that survives on other income and nostalgia from the 90s.
3. Business Model – WTF Do They Even Do?
- Core: Hire purchase, lending against securities, movable & immovable property.
- Revenue Model: Mostly interest & other income, not actual lending.
- USP: Survives in a niche where big NBFCs don’t even bother to look.
4. Financials Overview
- Q1 FY26 Profit: ₹12.8 Lakh
- FY25 PAT: ₹0.5 Cr
- ROE: 2.9% (barely moving the needle)
Verdict: Think of it as a fixed deposit with a mild attitude.
5. Valuation – What’s This Stock Worth?
- P/E: 52x (the market loves tiny stories)
- Book Value: ₹37 (P/B 1.3x)
- Fair Value Range: ₹40–₹55
Punchline: Valuation is like its profits – small and questionable.
6. What-If Scenarios
- Bull Case: Dividend story & re-rating → ₹60
- Bear Case: Zero growth + low ROE → ₹35
- Base Case: ₹45–₹50, drifts with the market breeze.
7. What’s Cooking (SWOT)
Strengths: Debt-free, dividend-paying.
Weakness: Zero sales growth, high P/E, tiny size.
Opportunities: Could pivot to micro-lending or niche financing.
Threats: Regulatory tightening, irrelevance.
8. Balance Sheet 💰
| Particulars (Mar’25) | Amount (₹ Cr) |
|---|---|
| Equity Capital | 5.4 |
| Reserves | 14.4 |
| Borrowings | 0 |
| Total Liabilities | 20.3 |
| Comment: Clean balance sheet, but also empty. |
9. Cash Flow (FY23–FY25)
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) |
|---|---|---|---|
| FY23 | -5.7 | 21.7 | 0.0 |
| FY24 | -0.5 | 1.5 | -3.2 |
| FY25 | -0.5 | 1.4 | -1.4 |
| Snark: Cash flows are as exciting as a Sunday afternoon nap. |
10. Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROE | 2.9% |
| ROCE | 4.0% |
| D/E | 0.0x |
| Dividend Yield | 5.2% |
| P/E | 52x |
| Punchline: High P/E, low returns – like buying premium coffee for instant mix taste. |
11. P&L Breakdown – Show Me the Money
| Year | Revenue (₹ Cr) | EBITDA (₹ Cr) | PAT (₹ Cr) |
|---|---|---|---|
| FY23 | 0.0 | -1.2 | 0.6 |
| FY24 | 0.0 | -0.6 | 0.6 |
| FY25 | 0.0 | -0.6 | 0.5 |
| TTM | 0.0 | -0.6 | 0.5 |
| Comment: Revenue? Non-existent. Profits? Courtesy of other income. |
12. Peer Comparison
| Company | Rev (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Bajaj Finance | 73,107 | 17,425 | 31 |
| Muthoot Finance | 20,214 | 5,333 | 20 |
| Abirami Fin. | 0.0 | 0.5 | 52 |
| Peer verdict: The toddler in a room full of financial giants. |
13. EduInvesting Verdict™
Abirami Financial is the NBFC equivalent of an old scooter: runs, pays dividends, but don’t expect it to win races.
Written by EduInvesting Team | 28 July 2025
Tags: Abirami Financial, NBFC, Microcap Dividend Stock, EduInvesting Premium
