WEBSITE BSE:544699 NSE: AYE Inc. Year: 1993 Industry: Finance - NBFC My Bucket: Add Stock
Last updated: 15:58
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1. Business Overview
AYE Finance Ltd. is an Indian Non-Banking Financial Company (NBFC) specializing in lending to the Micro, Small, and Medium Enterprise (MSME) sector. The company primarily focuses on providing credit to underserved small businesses that often lack access to formal credit from traditional banks. Its core business model involves leveraging technology and a "phygital" (physical + digital) approach to underwrite and disburse small-ticket business loans. AYE Finance makes money primarily through interest income generated from its loan portfolio.
2. Key Segments / Revenue Mix
The primary and almost exclusive segment for AYE Finance is MSME lending. Within this, the company offers various types of business loans tailored for working capital, machinery purchase, or other operational needs of small businesses. Revenue is predominantly derived from interest charged on these loans, supplemented by processing fees and other service charges. Specific product-wise revenue mix is not publicly available but the overarching focus is MSME credit.
3. Industry & Positioning
AYE Finance operates within India's dynamic and competitive financial services sector, specifically the NBFC and MSME lending segment. The MSME credit market in India is vast, highly fragmented, and significantly underpenetrated by traditional banks, creating a "missing middle" opportunity. AYE Finance positions itself as a tech-enabled lender filling this gap, serving businesses often overlooked due to a lack of formal credit history or collateral. It competes with other specialized NBFCs, fintech lenders, and to some extent, public and private sector banks expanding into small business lending.
4. Competitive Advantage (Moat)
AYE Finance's competitive advantages stem primarily from:
Niche Focus & Understanding: Deep understanding of the specific credit needs and risk profiles of informal and semi-formal MSMEs, allowing for tailored products.
Technology & Data Analytics: Utilization of proprietary credit assessment models and data analytics to underwrite borrowers with limited formal documentation, enabling faster and more efficient loan processing than traditional lenders.
"Phygital" Distribution Model: A blend of physical branches/presence in semi-urban and rural areas combined with digital processes for sourcing, underwriting, and servicing, provides effective reach and customer engagement.
Operational Efficiency: Streamlined processes to handle high volumes of small-ticket loans, which might be uneconomical for larger financial institutions.
5. Growth Drivers
Underpenetrated MSME Market: India's large and growing MSME sector has significant unmet credit demand, providing a substantial addressable market for AYE Finance.
Digital Adoption: Increasing digital literacy and adoption among small businesses facilitate easier data collection, credit assessment, and loan disbursement.
Financial Inclusion Push: Government and regulatory initiatives aimed at formalizing and financing MSMEs can boost demand for credit.
Geographic Expansion: Expanding its physical and digital footprint into new semi-urban and rural geographies across India.
Product Innovation: Introducing new credit products and services to cater to evolving MSME needs.
6. Risks
Asset Quality Risk: Lending to MSMEs, particularly those in the informal sector, inherently carries higher credit risk due to economic sensitivities, income volatility, and lack of formal financial records, potentially leading to higher Non-Performing Assets (NPAs).
Funding Risk: Reliance on diversified funding sources (banks, capital markets, development financial institutions). Any tightening in liquidity or increase in borrowing costs can impact profitability and growth.
Regulatory Risk: Changes in RBI regulations pertaining to NBFCs, such as capital adequacy norms, asset classification, provisioning, or fair practices, can significantly affect operations and profitability.
Competition: Intense competition from other NBFCs, fintech players, and expanding banks could put pressure on interest margins and market share.
Economic Downturn: MSMEs are highly susceptible to macroeconomic slowdowns, which can lead to reduced business activity and increased loan defaults.
7. Management & Ownership
AYE Finance is typically characterized by a professional management team with experience in financial services, technology, and operations, often backed by a strong board of directors. As a rapidly growing NBFC, its ownership structure includes significant stakes from institutional investors, including private equity and venture capital funds, alongside the founders. The company's strategy is guided by a focus on sustainable growth and robust risk management.
8. Outlook
AYE Finance operates in a fundamentally attractive market characterized by a large and underserved MSME segment in India. Its technology-driven and specialized approach positions it well to capitalize on this demand. The company's ability to maintain strong asset quality amidst aggressive growth, effectively manage funding costs, and adapt to the evolving regulatory landscape will be crucial. While the growth potential is significant, the inherent risks associated with lending to the informal sector and the competitive nature of the NBFC space require continuous focus on risk mitigation, operational efficiency, and capital management for sustainable long-term success.
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Market Cap ₹3416 Cr.
Stock P/E 19.9
P/B 1.3
Current Price ₹138.4
Book Value ₹ 102.6
Face Value 2
52W High ₹161.5
Dividend Yield 0%
52W Low ₹ 88.4
Price goes above X
Price falls below X
PE goes above X
PE falls below X
₹ | |
| #(Fig in Cr.) | Dec 2024 | Mar 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|
| Net Sales | 361 | 409 | 443 | 528 |
| Other Income | 9 | 11 | 12 | 17 |
| Total Income | 370 | 420 | 455 | 545 |
| Total Expenditure | 219 | 240 | 253 | 292 |
| Operating Profit | 152 | 180 | 202 | 253 |
| Interest | 115 | 123 | 141 | 135 |
| Depreciation | 6 | 6 | 7 | 8 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 |
| Profit Before Tax | 30 | 50 | 54 | 111 |
| Provision for Tax | 8 | 10 | 11 | 25 |
| Profit After Tax | 23 | 41 | 43 | 86 |
| Adjustments | 0 | 0 | 0 | 0 |
| Profit After Adjustments | 23 | 41 | 43 | 86 |
| Adjusted Earnings Per Share | 1.2 | 2.2 | 2.2 | 3.5 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 1 | 5 | 24 | 80 | 210 | 412 | 495 | 432 | 623 | 1040 | 1460 | 1741 |
| Other Income | 0 | 1 | 2 | 2 | 8 | 1 | 4 | 12 | 20 | 32 | 45 | 49 |
| Total Income | 1 | 6 | 26 | 82 | 218 | 413 | 499 | 443 | 643 | 1072 | 1505 | 1790 |
| Total Expenditure | 2 | 7 | 22 | 49 | 110 | 224 | 230 | 341 | 361 | 501 | 786 | 1004 |
| Operating Profit | -2 | -1 | 4 | 33 | 108 | 189 | 269 | 102 | 282 | 571 | 719 | 787 |
| Interest | 0 | 2 | 11 | 30 | 73 | 141 | 236 | 160 | 199 | 329 | 472 | 514 |
| Depreciation | 0 | 0 | 0 | 1 | 2 | 8 | 9 | 10 | 11 | 15 | 22 | 27 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | -2 | -3 | -7 | 2 | 32 | 40 | 23 | -67 | 71 | 228 | 225 | 245 |
| Provision for Tax | -1 | 1 | 0 | 0 | 7 | 8 | 6 | -16 | 28 | 56 | 54 | 54 |
| Profit After Tax | -1 | -4 | -7 | 2 | 25 | 32 | 17 | -51 | 44 | 172 | 171 | 193 |
| Adjustments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit After Adjustments | -1 | -4 | -7 | 2 | 25 | 32 | 17 | -51 | 44 | 172 | 171 | 193 |
| Adjusted Earnings Per Share | -0.4 | -1.7 | -3.4 | 1.1 | 11.7 | 15.2 | 7.9 | -24 | 20.5 | 80.4 | 9.1 | 9.1 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | 40% | 50% | 29% | 107% |
| Operating Profit CAGR | 26% | 92% | 31% | 0% |
| PAT CAGR | -1% | 0% | 40% | 0% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | NA% | NA% | NA% | NA% |
| ROE Average | 12% | 12% | 6% | -2% |
| ROCE Average | 13% | 12% | 11% | 5% |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Shareholder's Funds | 9 | 25 | 87 | 89 | 495 | 517 | 747 | 705 | 758 | 1236 | 1658 |
| Minority's Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Borrowings | 1 | 16 | 35 | 326 | 576 | 1375 | 1314 | 1506 | 2253 | 3494 | 2317 |
| Other Non-Current Liabilities | -1 | 1 | 1 | 4 | 5 | -10 | 14 | -1 | 18 | 10 | -27 |
| Total Current Liabilities | 1 | 22 | 40 | 96 | 195 | 125 | 20 | 58 | 71 | 89 | 2329 |
| Total Liabilities | 11 | 64 | 163 | 515 | 1272 | 2006 | 2095 | 2268 | 3100 | 4829 | 6277 |
| Fixed Assets | 0 | 0 | 1 | 2 | 4 | 18 | 27 | 27 | 27 | 32 | 41 |
| Other Non-Current Assets | 2 | 14 | 54 | 235 | 514 | 9 | 2 | 11 | 11 | 18 | 5046 |
| Total Current Assets | 9 | 49 | 108 | 277 | 754 | 1979 | 2066 | 2230 | 3062 | 4779 | 1190 |
| Total Assets | 11 | 64 | 163 | 515 | 1272 | 2006 | 2095 | 2268 | 3100 | 4829 | 6277 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 0 | 6 | 20 | 11 | 11 | 140 | 172 | 179 | 153 | 273 | 527 |
| Cash Flow from Operating Activities | -6 | -31 | -110 | -262 | -472 | -520 | 125 | -272 | -720 | -1323 | -812 |
| Cash Flow from Investing Activities | -0 | -8 | -5 | -41 | -26 | 42 | -190 | 46 | 78 | 83 | -39 |
| Cash Flow from Financing Activities | 12 | 54 | 106 | 304 | 627 | 510 | 72 | 200 | 762 | 1494 | 1255 |
| Net Cash Inflow / Outflow | 5 | 14 | -9 | 0 | 129 | 32 | 7 | -27 | 120 | 254 | 405 |
| Closing Cash & Cash Equivalent | 6 | 20 | 11 | 11 | 140 | 172 | 179 | 153 | 273 | 527 | 931 |
| # | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Per Share (Rs) | -0.42 | -1.69 | -3.37 | 1.08 | 11.75 | 15.18 | 7.91 | -24.05 | 20.54 | 80.39 | 9.06 |
| CEPS(Rs) | -0.39 | -1.62 | -3.14 | 1.48 | 12.84 | 18.87 | 12.26 | -19.38 | 25.9 | 87.2 | 10.24 |
| DPS(Rs) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Book NAV/Share(Rs) | 3.06 | 6.7 | 35.18 | 36.2 | 220.97 | 229.38 | 333.99 | 312.68 | 334.61 | 551.84 | 86.12 |
| Core EBITDA Margin(%) | -314.33 | -33.77 | 9.7 | 38.36 | 47.74 | 45.65 | 53.48 | 20.96 | 42.04 | 51.88 | 46.14 |
| EBIT Margin(%) | -312.1 | -24.9 | 14.59 | 40.39 | 50.43 | 44.03 | 52.44 | 21.33 | 43.39 | 53.52 | 47.72 |
| Pre Tax Margin(%) | -316.54 | -68.68 | -29.37 | 2.89 | 15.42 | 9.7 | 4.7 | -15.61 | 11.45 | 21.9 | 15.41 |
| PAT Margin (%) | -195.18 | -81.06 | -29.37 | 2.89 | 11.97 | 7.87 | 3.41 | -11.89 | 7.03 | 16.5 | 11.73 |
| Cash Profit Margin (%) | -182.44 | -77.53 | -27.42 | 3.96 | 13.08 | 9.79 | 5.29 | -9.58 | 8.87 | 17.9 | 13.25 |
| ROA(%) | -18.48 | -10.96 | -6.34 | 0.68 | 2.81 | 1.98 | 0.82 | -2.35 | 1.63 | 4.33 | 3.08 |
| ROE(%) | -26.46 | -34.64 | -15.75 | 3.02 | 9.14 | 6.74 | 2.81 | -7.44 | 6.35 | 18.14 | 12.21 |
| ROCE(%) | -28.82 | -3.4 | 3.25 | 9.99 | 12.5 | 11.66 | 13.09 | 4.3 | 10.25 | 14.29 | 12.76 |
| Receivable days | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Inventory Days | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Payable days | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| PER(x) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Price/Book(x) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield(%) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EV/Net Sales(x) | 5.15 | 3.64 | 2.98 | 4.89 | 2.76 | 2.89 | 2.01 | 2.72 | 3.1 | 2.7 | 2.37 |
| EV/Core EBITDA(x) | -1.72 | -17.02 | 17.99 | 11.78 | 5.36 | 6.28 | 3.71 | 11.5 | 6.85 | 4.92 | 4.81 |
| Net Sales Growth(%) | 0 | 874.65 | 385.91 | 225.76 | 162.85 | 96.43 | 20.29 | -12.79 | 44.34 | 66.86 | 40.33 |
| EBIT Growth(%) | -157.93 | 22.23 | 384.62 | 802.07 | 228.12 | 71.52 | 43.26 | -64.52 | 193.61 | 105.78 | 25.13 |
| PAT Growth(%) | -60.34 | -304.78 | -76.07 | 132.01 | 989.93 | 29.2 | -47.89 | -404.03 | 185.4 | 291.49 | -0.24 |
| EPS Growth(%) | -187.19 | -304.7 | -99.18 | 131.99 | 990.35 | 29.22 | -47.89 | -403.96 | 185.4 | 291.49 | -88.73 |
| Debt/Equity(x) | 0.16 | 1.83 | 0.81 | 4.49 | 1.43 | 2.71 | 1.78 | 2.19 | 3.1 | 2.88 | 2.78 |
| Current Ratio(x) | 7.45 | 2.19 | 2.68 | 2.9 | 3.86 | 15.89 | 101.62 | 38.45 | 42.89 | 53.68 | 0.51 |
| Quick Ratio(x) | 7.45 | 2.19 | 2.68 | 2.9 | 3.86 | 15.89 | 101.62 | 38.45 | 42.89 | 53.68 | 0.51 |
| Interest Cover(x) | -70.3 | -0.57 | 0.33 | 1.08 | 1.44 | 1.28 | 1.1 | 0.58 | 1.36 | 1.69 | 1.48 |
| Total Debt/Mcap(x) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| # | Dec 2025 | Feb 2026 | Mar 2026 |
|---|---|---|---|
| Promoter | 0 | 0 | 0 |
| FII | 0 | 19.04 | 18.66 |
| DII | 0 | 18.17 | 18.39 |
| Public | 0 | 62.79 | 62.95 |
| Others | 0 | 0 | 0 |
| Total | 0 | 100 | 100 |
| # | Dec 2025 | Feb 2026 | Mar 2026 |
|---|---|---|---|
| Promoter | 0 | 0 | 0 |
| FII | 0 | 4.7 | 4.6 |
| DII | 0 | 4.48 | 4.54 |
| Public | 0 | 15.5 | 15.53 |
| Others | 0 | 0 | 0 |
| Total | 0 | 24.68 | 24.68 |
* The pros and cons are machine generated.
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