Future growth expectations in earnings/operating earnings/profits/EPS?

Baid Finserv expects 20% to 25% growth in profit and income in the coming year (FY25). Revenue for FY25 is projected around INR80-85 crores, though INR100 crores looks tough. AUM is targeted at around INR500 crores by the end of FY25, with plans to reach INR600 crores by FY26. They aim to expand the branch network to 75 locations by FY26 from around 70 currently. EBITDA showed strong growth of 30% in FY24 with a margin of 62.7%, net profit increased 24.6% with a margin of 19.5%. Earnings per share grew 11.3% in FY24; future growth in EPS is expected aligned with profit growth. Cont

Current/ Expected Orderbook/ Pending Orders?

Baid Finserv aims to achieve an AUM (Assets Under Management) of around INR 500 crores by the end of FY 2025. Plans to further increase the loan book to INR 600 crores by FY 2026. Targets a 25% to 30% annual increase in AUM going forward. Fresh disbursement target for the current year is around INR 200 crores. With principal collections and closures, they expect an addition of approximately INR 120 crores to the existing AUM. Currently maintaining a capital adequacy of around 45%, allowing expansion without fresh capital infusion for roughly 2 years. The company plans branch expansion to 75 br

Any current/future new fundraising through debt or equity?

Rights issue for equity fundraising was proposed but later deferred; no current plans to dilute promoter holding or issue rights in the near term. Current capital adequacy is strong (around 45-46%), with low leverage (~1.4x), giving enough headroom for growth without immediate need for fresh capital. Borrowings primarily through term loans from banks and large NBFCs; considering issuance of NCDs soon to diversify funding sources. Major borrowings now come from scheduled banks (e.g., IDFC, Federal Bank, ICICI Bank, ESAF Small Finance Bank, Capital Small Finance Bank, SBI). Future fundraising pl

Any current/future capex/capital investment/strategic investment?

Current capex for branch expansion is modest, typically around INR 2-3 lakhs per branch, primarily for basic infrastructure. Each new branch becomes viable and self-sustainable within 5-6 months with an AUM of INR 3-4 crores. No major IT or infrastructure splurges on branch setup; emphasis is on efficient, lean operations. Plans to open 4-5 branches in Maharashtra in the next quarters. Target branch strength of 75 by FY26. Considering issuance of Non-Convertible Debentures (NCDs) soon for funding diversification. Exploring tie-ups with large lenders, NBFCs, and small finance banks for micro-ho

Future growth expectations in sales/revenue/volumes?

Targeting 20-25% growth year-on-year in both revenues and profit. Expect total revenue for FY25 around INR 80-85 crores (INR 100 crores considered tough). Aiming to disburse around INR 200 crores of fresh loans in FY25. Projecting total AUM of approximately INR 500 crores by end of FY25 and INR 600 crores by FY26. Plan to expand branch network to 75 locations by FY25. Introduce new products including electric vehicles and two-wheelers in vehicle loan segment to boost yield. Will tie up with large lenders, NBFCs, and small finance banks for micro-housing products. Growth driven by market expans

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Baid Finserv LtdQ1 FY25Finance

Baid Finserv Ltd Q1 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹10.2P/E: 10.4Market Cap: ₹176 CrSector: Finance

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

Yes

Order

N/A

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→Targeting 20-25% growth year-on-year in both revenues and profit.
→Expect total revenue for FY25 around INR 80-85 crores (INR 100 crores considered tough).
→Aiming to disburse around INR 200 crores of fresh loans in FY25.
→Projecting total AUM of approximately INR 500 crores by end of FY25 and INR 600 crores by FY26.
→Plan to expand branch network to 75 locations by FY25.
→Introduce new products including electric vehicles and two-wheelers in vehicle loan segment to boost yield.
→Will tie up with large lenders, NBFCs, and small finance banks for micro-housing products.
→Growth driven by market expansion (Maharashtra entry), technological advancements, and improved risk management tools.

Margin guidance

Category 3

→Baid Finserv expects 20% to 25% growth in profit and income in the coming year (FY25).
→Revenue for FY25 is projected around INR80-85 crores, though INR100 crores looks tough.
→AUM is targeted at around INR500 crores by the end of FY25, with plans to reach INR600 crores by FY26.
→They aim to expand the branch network to 75 locations by FY26 from around 70 currently.
→EBITDA showed strong growth of 30% in FY24 with a margin of 62.7%, net profit increased 24.6% with a margin of 19.5%.
→Earnings per share grew 11.3% in FY24; future growth in EPS is expected aligned with profit growth.
→Continuous addition of new product portfolios, including electric vehicles and two-wheelers, is expected to improve yields and margins.
→Cost of borrowing is expected to reduce by approximately 25 basis points, possibly enhancing NIMs marginally beyond the current 10.5%-11%.

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Fundraise plans

Yes

→Rights issue for equity fundraising was proposed but later deferred; no current plans to dilute promoter holding or issue rights in the near term.
→Current capital adequacy is strong (around 45-46%), with low leverage (~1.4x), giving enough headroom for growth without immediate need for fresh capital.
→Borrowings primarily through term loans from banks and large NBFCs; considering issuance of NCDs soon to diversify funding sources.
→Major borrowings now come from scheduled banks (e.g., IDFC, Federal Bank, ICICI Bank, ESAF Small Finance Bank, Capital Small Finance Bank, SBI).
→Future fundraising plans focus on associating with more banks and large NBFCs for better rates and increased borrowings.
→No immediate plans for fresh equity; additional capital raise might be considered once AUM reaches around INR 500 crores.

Order book

→Baid Finserv aims to achieve an AUM (Assets Under Management) of around INR 500 crores by the end of FY 2025.
→Plans to further increase the loan book to INR 600 crores by FY 2026.
→Targets a 25% to 30% annual increase in AUM going forward.
→Fresh disbursement target for the current year is around INR 200 crores.
→With principal collections and closures, they expect an addition of approximately INR 120 crores to the existing AUM.
→Currently maintaining a capital adequacy of around 45%, allowing expansion without fresh capital infusion for roughly 2 years.
→The company plans branch expansion to 75 branches by FY 2026 to support growth in the orderbook.
→Expected to leverage up to 2 to 3 times, which will improve volumes and ROE.

Capex plans

Yes

→Current capex for branch expansion is modest, typically around INR 2-3 lakhs per branch, primarily for basic infrastructure.
→Each new branch becomes viable and self-sustainable within 5-6 months with an AUM of INR 3-4 crores.
→No major IT or infrastructure splurges on branch setup; emphasis is on efficient, lean operations.
→Plans to open 4-5 branches in Maharashtra in the next quarters.
→Target branch strength of 75 by FY26.
→Considering issuance of Non-Convertible Debentures (NCDs) soon for funding diversification.
→Exploring tie-ups with large lenders, NBFCs, and small finance banks for micro-housing loan products.
→Focus on technological advancements: usage of LOS, LMS software from Graviton, Collect-ON app, and other digital payment solutions for process efficiency.
→No large strategic investments or significant capital expenditure beyond branch expansion and IT tool enhancements mentioned.

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