WEBSITE BSE:530139 NSE: KREON FIN Inc. Year: 1994 Industry: Finance - NBFC My Bucket: Add Stock
Last updated: 10:37
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1. Business Overview
Kreon Finnancial Services Ltd. is an Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India (RBI). The company's core business revolves around providing various financial services, primarily credit-related activities. This includes offering loans and advances, and engaging in investment activities. Kreon Finnancial Services focuses on generating income through interest earned on its lending portfolio and returns from its investment ventures.
2. Key Segments / Revenue Mix
Kreon Finnancial Services primarily derives its revenue from financing and investment activities. While specific granular breakdowns of loan types (e.g., retail, MSME, corporate) are often detailed in their annual reports, the overarching segment is "Financing & Investment Activities." The dominant portion of revenue typically comes from net interest income generated from its loan book.
3. Industry & Positioning
The Indian NBFC sector is diverse, competitive, and highly regulated by the RBI. It comprises a wide range of players from large, diversified entities to smaller, niche-focused companies. Kreon Finnancial Services operates within this fragmented landscape. Given its scale, it is likely positioned as a smaller to mid-sized NBFC, competing with numerous other players, including larger banks and well-established NBFCs, especially in specific regional or product segments it may target.
4. Competitive Advantage (Moat)
For a company of Kreon's likely scale, traditional moats like strong brand recognition, vast distribution networks, or significant cost advantages over large financial institutions are typically limited. Potential competitive advantages might include:
Niche Focus/Local Expertise: Ability to understand and serve specific local markets or underserved customer segments more effectively than larger players.
Agility & Relationship-Based Lending: Quicker decision-making processes and strong borrower relationships, particularly in segments where traditional banks may be slower or less willing to lend.
Regulatory License: The NBFC license itself provides a necessary barrier to entry, allowing it to operate in the financial lending space.
5. Growth Drivers
Growing Credit Demand: India's economic growth and increasing financialization drive sustained demand for credit from individuals and small to medium-sized enterprises (SMEs), segments often targeted by NBFCs.
Financial Inclusion: The ongoing push for financial inclusion can open up new customer bases in semi-urban and rural areas.
Digitalization: Adoption of digital lending platforms and processes can enhance efficiency, reach, and customer acquisition.
Expansion into New Geographies/Products: Strategic expansion into new regions or launching new financial products tailored to emerging needs can fuel growth.
6. Risks
Asset Quality Deterioration: Non-Performing Assets (NPAs) arising from borrower defaults pose a significant risk, impacting profitability and capital.
Interest Rate Fluctuations: Changes in interest rates affect both funding costs and the yield on assets, impacting net interest margins.
Funding & Liquidity Risk: Reliance on market borrowings makes the company susceptible to funding cost increases or liquidity crunches, especially during periods of economic stress.
Intense Competition: The presence of numerous banks and NBFCs creates fierce competition for both borrowers and funding, potentially pressuring margins.
Regulatory Changes: Evolving regulations from the RBI regarding NBFC operations, capital adequacy, and asset classification can impact business models and compliance costs.
Economic Slowdown: A general economic downturn can reduce credit demand and increase default rates.
7. Management & Ownership
Kreon Finnancial Services Ltd. is typically promoted and controlled by its founding individuals or family groups, who usually hold a significant equity stake, demonstrating a vested interest in the company's performance. The composition of the board and senior management usually includes professionals with experience in the financial services sector. Specific details on management quality and governance would require a deeper dive into their annual reports and public disclosures, but promoter-led companies in India often balance entrepreneurial drive with evolving corporate governance standards.
8. Outlook
Kreon Finnancial Services operates in a dynamic yet challenging Indian financial services landscape. The bull case hinges on strong credit demand from a growing economy, effective management of asset quality, and successful expansion into profitable lending niches. If the company can maintain a prudent lending approach, control its cost of funds, and leverage technology for efficient operations, it could capitalize on India's underlying demand for credit. The bear case involves risks such as a prolonged economic slowdown leading to higher NPAs, intense competitive pressures eroding margins, and difficulties in securing cost-effective funding. Furthermore, any adverse changes in regulatory policies or an inability to adapt to evolving market conditions could impact its profitability and growth trajectory. A balanced perspective suggests that while the opportunity for growth in the Indian financial sector is substantial, the company's performance will largely depend on its execution capabilities, risk management framework, and ability to navigate a highly competitive and regulated environment.
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Market Cap ₹69 Cr.
Stock P/E -16.6
P/B 1.8
Current Price ₹34
Book Value ₹ 18.6
Face Value 10
52W High ₹55
Dividend Yield 0%
52W Low ₹ 19.3
Price goes above X
Price falls below X
PE goes above X
PE falls below X
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| #(Fig in Cr.) | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Revenue | 4 | 4 | 5 | 5 | 6 | 6 | 7 | 10 | 10 | 10 |
| Other Income | 0 | 0 | 0 | 1 | 1 | 1 | 1 | 2 | 1 | 1 |
| Total Income | 4 | 5 | 5 | 6 | 6 | 7 | 8 | 12 | 10 | 11 |
| Total Expenditure | 2 | 6 | 4 | 5 | 5 | 10 | 8 | 6 | 7 | 8 |
| Operating Profit | 2 | -2 | 1 | 1 | 1 | -3 | 0 | 6 | 4 | 2 |
| Interest Expense | 0 | 0 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
| Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | 1 | -2 | 0 | 0 | 0 | -4 | -1 | 5 | 3 | 1 |
| Provision for Tax | 0 | -0 | 0 | -0 | 0 | -0 | 0 | 1 | 1 | 0 |
| Profit After Tax | 1 | -1 | 0 | 0 | 0 | -4 | -1 | 4 | 2 | 1 |
| Adjustments | -0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -0 |
| Profit After Adjustments | 1 | -1 | 0 | 0 | 0 | -4 | -1 | 4 | 2 | 1 |
| Adjusted Earnings Per Share | 0.5 | -0.7 | 0.1 | 0.1 | 0.1 | -1.8 | -0.4 | 1.9 | 1 | 0.5 |
| #(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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating Revenue | 1 | 1 | 1 | 1 | 1 | 1 | 2 | 4 | 9 | 16 | 27 | 37 |
| Other Income | 0 | 0 | 0 | 0 | 3 | 0 | 0 | 0 | 0 | 0 | 0 | 5 |
| Total Income | 1 | 1 | 1 | 1 | 4 | 1 | 2 | 4 | 10 | 16 | 27 | 41 |
| Total Expenditure | 1 | 1 | 1 | 0 | 3 | 5 | 2 | 2 | 5 | 14 | 27 | 29 |
| Operating Profit | -0 | 0 | -0 | 1 | 1 | -4 | -0 | 3 | 5 | 3 | -0 | 12 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 1 | 3 | 4 |
| Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 1 | 1 | 0 |
| Profit Before Tax | -0 | 0 | -0 | -4 | 0 | -4 | -1 | 2 | 4 | 1 | -4 | 8 |
| Provision for Tax | 0 | 0 | 0 | 0 | 0 | 0 | -0 | -0 | -1 | 0 | 0 | 2 |
| Profit After Tax | -0 | 0 | -0 | -4 | 0 | -4 | -0 | 2 | 5 | 1 | -4 | 6 |
| Adjustments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit After Adjustments | -0 | 0 | -0 | -4 | 0 | -4 | -0 | 2 | 5 | 1 | -4 | 6 |
| Adjusted Earnings Per Share | -0.1 | 0 | -0.2 | -3.7 | 0.2 | -4.3 | -0.5 | 2 | 3.4 | 0.3 | -2 | 3 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | 69% | 89% | 93% | 39% |
| Operating Profit CAGR | -100% | -100% | 0% | 0% |
| PAT CAGR | -500% | NAN% | 0% | 0% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | 30% | -4% | 39% | 15% |
| ROE Average | -13% | 9% | 9% | -10% |
| ROCE Average | -2% | 7% | 7% | -3% |
| #(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 | 12 | 12 | 10 | 6 | 6 | 2 | 2 | 13 | 21 | 33 | 31 |
| Minority's Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Borrowings | 0 | 1 | 1 | 2 | 3 | 8 | 8 | 0 | 0 | 0 | 0 |
| Current Liability | 0 | 0 | 0 | 0 | 1 | 1 | 0 | 7 | 10 | 31 | 35 |
| Other Liabilities & Provisions | 0 | 0 | 0 | 0 | 0 | -0 | 0 | 0 | -1 | -0 | -0 |
| Total Liabilities | 12 | 14 | 11 | 9 | 10 | 10 | 10 | 21 | 30 | 63 | 66 |
| Loans | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | 3 | 3 | 1 | 1 | 0 | 0 | 1 | 4 | 1 | 10 | 11 |
| Fixed Assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3 | 3 | 3 |
| Other Loans | 9 | 6 | 10 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 |
| Other Non Current Assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2 | 0 | 0 | 0 |
| Current Assets | 0 | 5 | 0 | 8 | 9 | 9 | 8 | 15 | 26 | 49 | 51 |
| Total Assets | 12 | 14 | 11 | 9 | 10 | 10 | 10 | 21 | 30 | 63 | 66 |
| #(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 | 0 | 0 | 0 | 0 | 1 | 1 | 1 | 1 | 1 | 3 |
| Cash Flow from Operating Activities | -0 | 0 | 0 | -3 | 0 | -5 | 1 | -4 | -6 | -1 | -2 |
| Cash Flow from Investing Activities | 0 | 0 | 0 | 2 | -0 | -0 | -0 | -1 | -1 | -25 | -1 |
| Cash Flow from Financing Activities | 0 | 0 | -0 | 1 | 1 | 4 | -0 | 5 | 7 | 28 | 1 |
| Net Cash Inflow / Outflow | -0 | 0 | 0 | 0 | 1 | -0 | 1 | 0 | -0 | 2 | -2 |
| Closing Cash & Cash Equivalent | 0 | 0 | 0 | 0 | 1 | 1 | 1 | 1 | 1 | 3 | 1 |
| # | 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) | -0.14 | 0.02 | -0.23 | -3.71 | 0.22 | -4.27 | -0.48 | 1.98 | 3.36 | 0.31 | -2.05 |
| CEPS(Rs) | -0.14 | 0.02 | -0.2 | -3.63 | 0.36 | -4.15 | -0.41 | 2.03 | 3.76 | 0.66 | -1.66 |
| DPS(Rs) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Book NAV/Share(Rs) | 12.25 | 12.26 | 10.05 | 6.34 | 6.26 | 1.86 | 1.92 | 7.6 | 11.95 | 16.26 | 15.31 |
| Net Profit Margin | -11.49 | 2.41 | -39.05 | -394.22 | 27.88 | -414.09 | -28.09 | 54.93 | 48.55 | 3.81 | -15.61 |
| Operating Margin | -11.49 | 7.09 | -22.94 | -371.51 | 66.82 | -370.95 | -11.76 | 65.13 | 47.96 | 11.76 | -4.63 |
| PBT Margin | -11.49 | 2.41 | -39.05 | -387.7 | 33.12 | -412.7 | -31.53 | 54.93 | 42.15 | 5.88 | -15.35 |
| ROA(%) | -1.16 | 0.14 | -1.85 | -36.19 | 2.36 | -43.16 | -4.83 | 13.73 | 17.96 | 1.33 | -6.4 |
| ROE(%) | -1.17 | 0.14 | -2.07 | -45.26 | 3.56 | -105.17 | -25.34 | 42.1 | 37.64 | 2.54 | -12.98 |
| ROCE(%) | -1.16 | 0.41 | -1.1 | -35.49 | 6 | -40.83 | -2.13 | 16.96 | 18.47 | 4.28 | -1.99 |
| Price/Earnings(x) | 0 | 459.83 | 0 | 0 | 0 | 0 | 0 | 21.1 | 10.71 | 125.37 | 0 |
| Price/Book(x) | 0 | 0.66 | 0.53 | 0 | 0 | 3.19 | 3.54 | 5.5 | 3.01 | 2.38 | 1.43 |
| Dividend Yield(%) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EV/Net Sales(x) | 8 | 12.78 | 10.41 | 12.89 | 14.86 | 12.48 | 7.59 | 13.01 | 5.92 | 5.19 | 2.1 |
| EV/Core EBITDA(x) | -69.86 | 180.24 | -57.55 | 23.1 | 17.72 | -3.47 | -101.65 | 19.61 | 11.02 | 32.28 | -127.66 |
| Interest Earned Growth(%) | 59.76 | -40.99 | -19.66 | 58.99 | -14.55 | 28.25 | 65.28 | 122.89 | 146.72 | 73.55 | 62.05 |
| Net Profit Growth | -307.19 | 112.35 | -1404.25 | -1505.17 | 106.04 | -2004.73 | 88.79 | 535.8 | 118.08 | -86.39 | -764.43 |
| EPS Growth(%) | -307.07 | 112.35 | -1404.45 | -1504.93 | 106.04 | -2004.37 | 88.79 | 514.15 | 69.47 | -90.83 | -764.5 |
| Interest Coverage(x) % | -1264.72 | 1.51 | -1.42 | -22.95 | 1.98 | -8.88 | -0.59 | 6.38 | 8.24 | 2 | -0.43 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 55.59 | 55.59 | 55.59 | 55.59 | 55.59 | 55.59 | 55.6 | 55.6 | 55.6 | 55.6 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 44.41 | 44.41 | 44.41 | 44.41 | 44.41 | 44.41 | 44.4 | 44.4 | 44.4 | 44.4 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 1.12 | 1.12 | 1.12 | 1.12 | 1.12 | 1.12 | 1.12 | 1.12 | 1.12 | 1.12 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 0.9 | 0.9 | 0.9 | 0.9 | 0.9 | 0.9 | 0.9 | 0.9 | 0.9 | 0.9 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 2.02 | 2.02 | 2.02 | 2.02 | 2.02 | 2.02 | 2.02 | 2.02 | 2.02 | 2.02 |
* The pros and cons are machine generated.
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