Hindon Mercantile Limited: A Rising Star in India's NBFC Sector

In the world of unlisted shares, Hindon Mercantile Limited (HML) is gaining a lot of attention. If you are planning to invest in Hindon Merchantile unlisted shares, then we recommend that you read the following article, so that you can make an informed decision.

Overview of Hindon Mercantile Limited (HML)

Established in 1985 and registered as a Non-Banking Financial Company (NBFC) with the Reserve Bank of India in 2002, HML has become a prominent player in the Indian financial landscape. Hindon Mercantile Limited is headquartered at Best Sky Tower, Netaji Subhash Place, Pitampura, New Delhi. The company offers a diverse range of financial products, including:

• Personal Loans
• Business Loans
• Loan Against Property
• Gold Loans
• Vehicle Loans
• Supply Chain Finance

In addition to traditional lending, HML is expanding its digital footprint through Mufinpay, a platform offering prepaid cards, mobile wallets, and gift vouchers, aiming to provide a comprehensive digital banking experience.

Financial Performance

Let us understand the financial performance of HML from the following bullet points:

• As of the fiscal year ending March 31, 2024, HML reported a revenue of ₹120 crore, marking a 4% year-on-year growth.
• The company's balance sheet reflects a robust financial position, with a Capital to Risk Weighted Assets Ratio (CRAR) of 24.98%, well above the regulatory minimum.
• The Tier I CRAR stands at 24.32%, indicating strong capital adequacy.

Grey Market Activity

Let us understand some of the information related to unlisted shares of HML that are being traded in the grey market from the following bullet points:

• Hindon Mercantile's unlisted shares have seen significant activity in the grey market.
• The share price has appreciated from approximately ₹600 to ₹850 over recent years, reflecting growing investor interest and confidence in the company's prospects.
• The current grey market price is around ₹800, with a Price-to-Earnings (P/E) ratio of 90.25, suggesting high growth expectations.

Promoters and Management

Let us understand the current promoters and management at HML from the following bullet points:

• The company's leadership is spearheaded by Mr. Kapil Garg, who acquired HML in 2019. 
• Under his guidance, HML has expanded its product offerings and enhanced operational efficiency. 
• The board comprises experienced professionals, including Ms. Tanvi Jawa, the Chief Financial Officer, who brings over a decade of expertise in financial accounting and reporting.

Investment Considerations

While HML presents promising investment opportunities, potential investors should consider the following:

• Regulatory Risks: As an unlisted company, HML's shares are not subject to the same regulatory oversight as listed entities. 
• Liquidity: The unlisted nature of the shares may affect their liquidity, making it challenging to buy or sell large quantities.
• Valuation: The high P/E ratio indicates that the stock is priced at a premium, which may not align with the company's current earnings.

If you want to know more about unlisted shares, the terminology, and how they are traded, then we recommend that you read our detailed blog on unlisted shares.

Future Outlook

Hindon Mercantile is expected to grow, with plans to enhance its digital offerings and expand its customer base. The company's focus on underserved and semi-urban segments may help to be a part of India's growing financial inclusion initiatives. Investors can anticipate potential returns as the company progresses towards a public listing.

Conclusion

Hindon Mercantile Limited may be a great opportunity in the unlisted share market. With its diverse financial products, strong leadership, and promising growth trajectory, HML offers investors a chance to be part of India's evolving financial sector. However, it is crucial to weigh the associated risks and conduct comprehensive due diligence before investing.

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Frequently Asked Questions

What is Hindon Mercantile Limited?

A Non-Banking Financial Company offering a range of financial products and services.

Where is Hindon Mercantile located?

Headquartered at Best Sky Tower, Netaji Subhash Place, Pitampura, New Delhi.

What is the current share price of Hindon Mercantile in the grey market?

Approximately ₹750, with a P/E ratio of 90.25.

Who is the promoter of Hindon Mercantile?

Mr. Kapil Garg, who acquired the company in 2019.

What are the investment risks associated with Hindon Mercantile?

Regulatory risks, liquidity concerns, and high valuation.

How can I invest in Hindon Mercantile's unlisted shares?

Through a demat account and specialised trading platforms.

Author: Diwakar Singh

Diwakar Kumar Singh is a finance writer and BFSI specialist with 7+ years of experience in financial content and research. He has authored hundreds of finance articles, published multiple books internationally, and contributed to research publications. A Gold Medalist MBA from IMT, he brings a strong analytical understanding combined with clear, reader-focused communication. His work focuses on simplifying complex financial topics, including IPO analysis, unlisted shares, financial ratios, and company evaluations, providing well-researched and evidence-based insights to help readers make informed financial decisions.