Hero FinCorp, part of the ‘Hero’ group is an Indian NBFC. It is engaged primarily in financing two-wheelers for Hero Motocorp, the largest motorcycle maker in the world. To diversify its base, it has forayed into providing loans against property and in commercial lending. It has an employee base of 1500. The Company has one wholly-owned subsidiary company viz. Hero Housing Finance Limited (“HHFL”). HHFL had started its lending operations from April 2018. It is an all-inclusive housing finance company providing hassle-free home loans PAN India which includes the following products to its customers: (i) Home Loans, (ii) Loan Against Property, etc. HHFL has shown tremendous growth and touched loans of INR 556.75 crore during the first year of its operation in FY19. The AUM has reached nearly 20,000 crores in the current financial year.  Loan mix consists:  a.) Retail Individuals - 39%.   b.) Retail Businesses - 30%.   c.) Commercial Loans – 31%. Financials Highlight of Half-Yearly Results:  

Particulars (Crores)	6M FY19	6MFY18	12MFY18-19
Total Revenue	1668	1078	2492
Expense	1438	947	2078
Profit/Loss Before Tax (PBT)	244	130	413
Profit/Loss After Tax (PAT)	163.56	82.42	267
Earnings per share (EPS)	14.41	8.32	25.97

a) The company has been resilient and strengthened its footing in these tough times in the automotive industry. b) The PAT has increased to 168 crores compared to 83 crores in the H2 of FY-2018-19. A 100% increase in profits. c) The capital adequacy ratio maintained close to the 19% mark. d) The debt to equity ratio stood at a modest 4.5 e) The ROA for the past 5 years maintained at 1.6%. If the company tries to expand its asset base, the return on the asset base would be decent. After the NBFC crisis triggered by IL&FS, many of the shady NBFCs have stopped their operations or gone under. Only a few with proper discipline continued to prosper and Hero FinCorp is one amongst them. For more detail about Hero-Fin Corp please visit Link Disclaimer: This article is only for education purposes, and not to be construed as investment advice. Please consult your advisor before making an investment.