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  3. Hinduja Leyland Finance Limited
H

Hinduja Leyland Finance Limited

27.8K

₹ 225 0.00 (0.00) 1 M

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About Hinduja Leyland Finance Limited

1. Business Model

HLF primarily operates as a Non-Banking Financial Company (NBFC) under the Hinduja Group. Its business model revolves around providing tailored financial solutions across various segments, particularly in:

  • Vehicle Financing: A core focus area with disbursements primarily in commercial, passenger, and two-wheeler segments.

  • Loan Against Property (LAP): Leveraging real estate collateral for credit.

  • Portfolio Buyouts: Acquiring existing portfolios to expand asset management.

  • Housing Finance: Operated through its subsidiary, Hinduja Housing Finance Limited, focusing on affordable housing loans.

The company adopts a customer-centric approach backed by a robust IT framework to manage risks and operational efficiency, with a widespread presence in 21 states and 3 union territories covering 1,550+ locations.


2. What Does the Company Do?

HLF provides financial services tailored to individual and institutional needs, including:

  • Financing for commercial vehicles, tractors, two-wheelers, and construction equipment.

  • Small-ticket loans for customers in rural and semi-urban areas.

  • Housing loans through its subsidiary.

  • Focus on asset-backed financing to ensure low risk.

The company caters to diverse industries with a significant emphasis on automotive, leveraging its association with Ashok Leyland to expand reach and operational synergies.


3. Financial Statement Analysis (FY23 vs. FY24)

Key Financial Metrics:

  • Total Income: Increased from INR 3,502 Cr in FY23 to INR 4,660 Cr in FY24 (+33%).

  • PAT: Grew from INR 490 Cr in FY23 to INR 636 Cr in FY24 (+30%).

  • AUM: Expanded significantly from INR 36,906 Cr in FY23 to INR 49,235 Cr in FY24 (+33%).

Profitability Metrics:

  • The profit margin remained robust with a PAT margin of approximately 14% in FY24.

  • EPS rose to INR 11.89 in FY24 from INR 9.15 in FY23, indicating enhanced shareholder value.

Asset Quality:

  • Gross Stage III Assets reduced from 3.34% to 2.7%, highlighting improved portfolio quality.

  • Provision coverage ratio increased from 117% to 201%, reflecting stronger risk buffers.

Capital Adequacy:

  • Capital Adequacy Ratio stood at 17.26% (well above the statutory minimum of 15%).

4. Valuation

At a valuation of INR 270 per share , Valuation of INR 14450 Cr and an AUM nearing INR 50,000 Cr, HLF's price-to-AUM multiple of 0.28x indicates a deeply undervalued position relative to industry peers. Key valuation points include:

  • Price-to-Earnings (P/E): 22x, significantly below competitors like Capri Global (66.67x) and Poonawalla Fincorp (37.73x), indicating attractive entry levels.

  • Price-to-Book (P/B): 2x, showcasing reasonable valuation against net worth.

  • Market Cap/Topline: 2.8x, reflecting scalability opportunities.

Given the growth trajectory, market presence, and brand value, the valuation appears attractive for long-term investors.


5. Risks in the Business Model

HLF faces certain risks that investors must consider:

a) Credit Risk:

  • Exposure to economically sensitive sectors like automobiles and housing could lead to defaults during downturns.
  • Gross Stage III assets, though declining, pose a potential risk in economic slowdowns.

b) Interest Rate Risk:

  • Fluctuations in borrowing costs can affect margins, especially as the company scales its debt.

c) Regulatory Risk:

  • Stringent RBI guidelines on NBFC operations, including capital adequacy and asset quality norms, require consistent compliance.

d) Competition Risk:

  • The vehicle financing space is highly competitive, with major players like Bajaj Finance and Poonawalla Fincorp posing significant challenges.

e) Operational Risk:

  • Dependence on IT infrastructure increases vulnerability to cybersecurity threats.

f) Geographical Concentration:

  • Although the company has a national presence, over-reliance on specific regions for vehicle finance may expose it to localized risks.

Conclusion

HLF exhibits a compelling case as a good opportunity with its strong financial performance, robust asset quality, and undervalued market position. However, potential investors should weigh its credit and regulatory risks while leveraging its growth potential for core portfolio allocation.

... Read more

Fundamentals

Hinduja Leyland Finance Limited Price
₹ 225
Per Equity Share
Lot Size
1000 Shares
52 Week High
₹ 285
52 Week Low
₹ 225
Depository
NSDL & CDSL
PAN Number
AACCH1807P
ISIN Number
INE146O01014
CIN
U65993TN2008PLC069837
RTA
KFin Technologies
Market Cap (in cr.)
₹ 12268
P/E Ratio
19.3
P/B Ratio
1.8
Debt to Equity
5.14
ROE (%)
9.34
Book Value
125.08
Face Value
10
Total Shares
545244490
Hinduja Leyland Finance Limited

₹225


Hinduja Leyland Finance Limited

*Best In Industry


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Financials (Figures in cr)

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Frequently Asked Questions

Find answers to common questions that you may have in your mind.

Please find below the procedure for buying Hinduja Leyland Finance Limited at UnlistedZone.

  1. 1. You confirm booking of Hinduja Leyland Finance Limited Unlisted Shares with us at a trading price.

  2. 2. You provide your client master report (ask the broker if not available) along with PAN Card and Cancelled Cheque in case you are not transferring funds from the bank account as mentioned in the CMR Copy. These are KYC documents required as per SEBI regulations.
  3.  
  4. 3. We Will Provide the Bank details. You need to transfer funds to that account.

  5. 4. Payment has to be done in RTGS/NEFT/IMPS CHEQUE TRANSFER. No CASH DEPOSIT.

  6. 5. Payment has to be done from the same account in which shares are to be credited.

  7. We will transfer the shares in 24 hours if funds are credited before 2 pm. Important

    Note: Please note that the lock-in period for selling Hinduja Leyland Finance Limited Unlisted Shares is 6 months after listing. Hence, you can’t sell Hinduja Leyland Finance Limited Unlisted Shares which you bought in Pre-IPO for 6 months after its listing. i.e., You can sell it only after 6 months calculated from the listing date. For any queries, please contact us at sales@unlistedzone.com

Please find below the procedure for selling Hinduja Leyland Finance Limited at UnlistedZone.


  1. 1. We will confirm our buying price of Hinduja Leyland Finance Limited.

  2. 2. We will give you our client master report and you will transfer Hinduja Leyland Finance Limited to our demat account.

  3. 3. We will ask for your bank details once Hinduja Leyland Finance Limited are received in our demat account.

  4. 4. We will transfer the funds to your bank account within 24 hrs of receiving Hinduja Leyland Finance Limited.

  5. 5. Payment will be made in RTGS / NEFT / CHEQUE TRANSFER/IMPS. No CASH DEPOSIT.

  6. 6. Payment will be given in the same account which is linked to the demat account or you need to provide the cancelled cheque showing your name to verify. As per SEBI regulations, the transfer of funds to a third-party account is not legal and our policy refrains us from doing so.

    Note:
    The price at which we are buying is fixed for 3 days. If you can't sell your stock within 3 days, then the price of that day will be applicable when we receive the shares in our demat.

The lock-in period for Hinduja Leyland Finance Limited varies depending on the category of investors:

  1. 1. For Venture Capital Funds or Foreign Venture Capital Investors, there is a lock-in period of 6 months from the date of acquisition of Hinduja Leyland Finance Limited.

  2. 2. For AIF-II (Alternative Investment Funds - Category II), there is no lock-in period.

  3. 3. For other types of investors, which include Retail Investors, High Net-worth Individuals (HNIs), or Body Corporates, the lock-in period is 6 months from the date of the IPO listing of Hinduja Leyland Finance Limited.

This regulation was introduced by SEBI in August 2021. The rule change, which reduced the lock-in period from one year to six months, was aimed at encouraging more investments in startups that are preparing for public offerings or IPOs. This reduction in the lock-in period is seen as a significant step forward, and since its introduction, many Portfolio Management Services (PMS) have been advising their clients to invest in Pre-IPO shares to capitalize on the benefits of early-stage investments.

However, for SME IPOs, the lock-in period is of One year.

DIS, or Delivery Instruction Slip, is a tool used by investors to sell or transfer Hinduja Leyland Finance Limited from their demat account to another. There are two types of DIS Methods:

1. Offline-DIS: This is a traditional, paper-based method for transferring shares. When using Offline-DIS, investors are required to fill out a DIS form and submit it to their broker. The necessary fields in the form include:

a. ISIN number of Hinduja Leyland Finance Limited.

b. Name of Hinduja Leyland Finance Limited.

c. Quantity of Hinduja Leyland Finance Limited.

d. Consideration Amount.

e. Target DP ID and Client ID.

f. Annexure.

2. Online DIS: Some brokers offer the facility to transfer Hinduja Leyland Finance Limited through an online DIS system. It's advisable to check with your broker if such a facility is available.

For instance, platforms like Angel Broking provide an Online-DIS feature. In this method, an investor simply needs to add a beneficiary and transfer Hinduja Leyland Finance Limited by filling in details similar to those required in the Offline-DIS.

For a more comprehensive understanding of this process, you can refer to our detailed article: https://unlistedzone.com/how-do-i-sell-my-unlisted-shares/

 

In recent years, the unlisted share market has expanded significantly, leading to a reduction in the minimum investment amount. Previously, the typical investment ticket size ranged from 5-10 Lakhs, but in the current market scenario, it has decreased to between 35-50k. Therefore, through our UnlistedZone platform, if someone wishes to invest in Hinduja Leyland Finance Limited, the minimum investment required would now be in the range of 35-50k

Yes, buying and selling unlisted shares in India is indeed 100% legal. This activity is regulated and governed under the guidelines provided by the Securities and Exchange Board of India (SEBI). Investors and traders must adhere to these regulations and guidelines to ensure compliance with legal and financial standards. It's important for participants in the unlisted share market to be aware of and understand these regulations to engage in transactions legally and securely

When you sell unlisted shares within a period of two years from the date of acquisition, any profit earned from the sale is classified as Short-term Capital Gain (STCG). This gain is then added to your total income for that financial year. The tax on this short-term capital gain is calculated based on your applicable individual income tax slab rates. Therefore, the rate at which you will pay tax on the STCG from unlisted shares depends on your total income, including this gain, and the tax slab it falls under as per the prevailing income tax laws in India. It's important for investors to consider these tax implications when engaging in transactions involving unlisted shares.

Long-term Capital Gains (LTCG) on unlisted shares in India refer to the profits earned from the sale of unlisted shares that have been held for more than two years. The key aspects of LTCG on unlisted shares include:

    • 1. Tax Rate: LTCG on unlisted shares is taxed at a rate of 20%. However, it has now changed in Budget 2024 from 23rd July 2024 to 12.5%.

    • 2. Indexation Benefit
      : This is a significant advantage for investors. Indexation allows for adjusting the purchase price of the shares for inflation, which can reduce the taxable gain. However, This has removed in the Budget 2024 from 23rd July 2024.

    • 3. Importance for Investors
      : Understanding LTCG is crucial, especially for High Net-worth Individuals (HNIs) and retail investors, as it impacts their investment strategy and tax planning. Knowing these details helps in making informed investment decisions.

    • 4. Calculation
      : New LTCG will be calculated from 23rd July 2024 as flat rate of 12.5%.

    • 5. Applicability: LTCG tax is applicable to profits from the sale of unlisted shares held for more than two years.

    • 6. Relevance
      : This tax is particularly relevant to investors in the unlisted share market, including those considering selling their holdings after a period of more than two years.

When shares initially bought in the unlisted market become listed, the taxation rules change significantly if these shares are sold through a stock exchange. Here's what investors need to know:

Transition to Listed Market Tax Rates: 
Once unlisted shares are listed on the stock exchange and subsequently sold, the tax rates applicable to listed securities come into effect. This shift means that the favorable tax treatments for listed shares, as per the prevailing tax laws, will apply.

Taxation Based on Holding Period: 
The crucial factor in determining the type of capital gains tax (Long-term or Short-term) is the holding period of the shares. Importantly, this period is calculated from the original purchase date when the shares were unlisted.

Long-term vs. Short-term Capital Gains: If the shares are sold after being held for more than one year from the date of purchase (including the period when they were unlisted), they are subject to Long-term Capital Gains (LTCG) tax.

Conversely, if sold within one year, Short-term Capital Gains (STCG) tax rates apply.

Significance for Investors: This information is vital for investors in the unlisted market, as it impacts their tax planning and decision-making process. Understanding these nuances ensures that investors can strategically plan the sale of their shares post-listing to optimize tax implications.

Advice for Investors: It's advisable for investors to keep a record of their purchase dates and monitor the listing dates closely. Additionally, staying updated with the latest tax regulations or consulting with a financial advisor is recommended for accurate tax calculations and compliance.

When you purchase Hinduja Leyland Finance Limited through UnlistedZone, it's important to note that, as per SEBI regulations, these shares can only be transferred to a demat account.

There are two primary ways to check the credit of Hinduja Leyland Finance Limited in your account:

1. Using NSDL or CDSL Applications:

Download the NSDL or CDSL application from the Google Play Store.

To determine whether your stock broker is registered with NSDL or CDSL, you can examine the format of your Demat Account number. The Demat Account number consists of 16 characters, combining the DP ID and Client ID.

DP ID is the unique identification number of the Broker, assigned by CDSL or NSDL.

Client ID is the unique identification number of the Client, representing their portfolio.

In CDSL, the Demat Account number is entirely numeric (e.g., 12345678 for DP ID and 91234567 for Client ID).

In NSDL, the first two characters are alphabetic, representing the country (e.g., 'IN' for India), followed by a 6-digit unique number for the Broker (DP ID) and an 8-digit Client ID (e.g., IN123456 for DP ID and 78912345 for Client ID).

2. Checking in Broker's Application:

The credit of Hinduja Leyland Finance Limited can also be checked in your broker's application. However, it's important to note that it may take T+2 days for the shares to show up in the application after the transaction.

The Hinduja Leyland Finance Limited are credited in the demat account on the same day as the transfer of funds into our company's bank account.

"The price of Hinduja Leyland Finance Limited can be checked in two ways. First, you can join our Telegram channel, where we share the latest prices of all unlisted shares daily in the morning. Secondly, you can check price on our UnlistedZone platform to view historical graphs and prices of all shares in one place."

Investing in Hinduja Leyland Finance Limited, like any investment, carries certain risks that should be carefully considered:

1. Liquidity Risk: Unlisted shares, by their nature, are not traded on public stock exchanges. This can result in lower liquidity compared to listed shares, meaning it might be more challenging to find buyers when you wish to sell your shares.

2. Price Volatility: The price of Hinduja Leyland Finance Limited can be more volatile compared to listed shares. This is partly due to the lack of regular public trading and potentially limited information available about the company's financial health and performance.

3. Regulatory Risk: Unlisted shares are subject to different regulatory frameworks than listed shares. Any changes in regulations or compliance requirements can impact the value and tradeability of these shares.

4. Limited Information: There may be less publicly available information about unlisted companies. This can make it more difficult to assess the company's true value and potential for growth, increasing the risk of investment.

5. No Guarantee of Future Listing: Investing in Hinduja Leyland Finance Limited with the expectation of future listing on a public exchange carries the risk that the listing may not occur. This can affect both the liquidity and potential value appreciation of the shares.

6. Company-Specific Risks: Each company has its own set of risks based on its industry, management, financial health, and market position. These risks can significantly impact the performance of your investment in Hinduja Leyland Finance Limited.

UnlistedZone: Pioneering Excellence in India's Unlisted Share Market

UnlistedZone stands as India's fastest-growing and leading marketplace for buying and selling unlisted shares. Over the past 5 years, we have carved a niche in the financial market, website hit user inflows over a 2 million users on our platform since inception. This remarkable journey is underscored by the sheer volume of transactions facilitated through UnlistedZone, which has already surpassed the 300 Crore mark.

At the helm of our success are our esteemed co-founders, Mr. Umesh Paliwal and Dinesh Gupta. Their insights and expertise are regularly sought after by leading financial publications such as MoneyControl, Business Standard, and The Economic Times, particularly for their authoritative views on IPOs and the unlisted market. Our journey over these 5 years has not just been about numbers; it's been about building trust and reliability.

UnlistedZone has established a formidable reputation in the industry, earning the trust and confidence of our users. This trust is our cornerstone, ensuring that new investors can engage with us without the apprehensions of fraud that are often associated with unknown brokers in the market.

At UnlistedZone, we are committed to maintaining the highest standards of transparency and integrity, ensuring that your investment journey is not just profitable but also secure and trustworthy.

Valuation Methodology at UnlistedZone for Hinduja Leyland Finance Limited

At UnlistedZone, we employ a meticulous and strategic approach to valuing Hinduja Leyland Finance Limited, utilizing two primary methods: Benchmark Valuation Based on Latest Funding:

1. Our first step is to examine the most recent funding round for Hinduja Leyland Finance Limited. This provides us with a benchmark valuation, offering a clear indication of the company's current market value as perceived by investors and industry experts. This method is particularly effective in capturing the latest market sentiment and financial health of the company.

2. Comparison with Listed Peers: In cases where there hasn't been recent funding for Hinduja Leyland Finance Limited, we adopt a comparative approach. This involves identifying a business in the listed market that closely resembles Hinduja Leyland Finance Limited in terms of industry, size, and business model. By comparing and contrasting the two, we can ascertain a fair valuation for Hinduja Leyland Finance Limited, drawing on the market data and performance metrics of its listed counterpart.

Investor Advisory: As experts in the unlisted space, we at UnlistedZone emphasize the importance of thorough risk assessment to all our investors. It's crucial to evaluate all risk parameters carefully before investing in unlisted shares. This due diligence is key to making informed and strategic investment decisions in the dynamic and evolving unlisted market.

"At UnlistedZone, our approach to sourcing Hinduja Leyland Finance Limited involves a strategic and direct method. Primarily, we acquire these shares from two key groups:

1. Employees of the Company: Often, employees of a company receive shares as part of their compensation or through employee stock option plans (ESOPs). Over time, some of these employees may decide to liquidate their holdings for various reasons, such as financial needs or portfolio diversification. We engage with these employees, providing them a platform to sell their shares.

2. Initial Investors: These are the early-stage investors or angel investors who provided capital to the company during its initial phases. As the company grows and evolves, these initial investors might look to sell part or all of their stake in the company. This could be for reasons like capitalizing on their investment, reallocating assets, or other strategic financial decisions.

By connecting with these groups, UnlistedZone ensures a reliable and consistent supply of Hinduja Leyland Finance Limited for our clients. This method not only helps employees and initial investors in liquidating their assets but also provides our clients with access to shares that are not readily available in the public market. It's a win-win for both the sellers and buyers, facilitated efficiently through our platform."

"The Securities and Exchange Board of India (SEBI) does have a regulatory influence on the unlisted market, though it's not as comprehensive as its oversight of the listed markets.

Key aspects of SEBI's involvement in the unlisted space include:

1. Applicable Rules and Regulations: Certain SEBI regulations are indeed applicable to transactions in the unlisted market. This includes the mandatory lock-in period of 6 months, the requirement to pay stamp duty, and depository participant (DP) charges for every transaction. These measures are in place to ensure a certain level of standardization and protection in the unlisted market, similar to those in the listed markets.

2. Lack of Specific Regulation for Unlisted Brokers: As of now, SEBI does not have specific regulations for becoming an unlisted broker. This means that while certain SEBI rules apply to transactions within the unlisted market, the process of becoming a broker in this space is not directly regulated by SEBI. This lack of direct regulation highlights the importance of due diligence by investors when engaging with brokers in the unlisted market.

3. Investor Protection and Transparency: The regulations that do apply, such as the lock-in period and transaction charges, are designed to protect investors and add a layer of transparency to these transactions. They aim to mitigate some of the risks inherent in trading unlisted securities, which typically don't have the same level of public scrutiny and regulatory oversight as listed securities. In summary, while SEBI's regulatory framework does extend to certain aspects of the unlisted market, it does not comprehensively regulate all aspects of it, particularly concerning the accreditation of unlisted brokers. This underscores the need for investors to exercise caution and conduct thorough research when participating in the unlisted market."

"For comprehensive and up-to-date news and information about Hinduja Leyland Finance Limited, we have several platforms to keep you informed. Our website is regularly updated with the latest insights and developments. For real-time updates and engaging discussions, you can join our Telegram channel. Additionally, follow us on Twitter for quick news bites and industry trends. And for more in-depth analysis and informative content, subscribe to our YouTube channel. These resources are designed to provide you with a well-rounded understanding of the unlisted market, ensuring you have access to all the information you need about Hinduja Leyland Finance Limited."

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