SRG Housing Finance Ltd

SRG Housing Finance Ltd operates with a debt-to-equity ratio of 3.16, indicating a capital structure heavily reliant on debt financing. The company's liquidity position is assessed as medium, with negative net cash after subtracting total debt, suggesting potential short-term liquidity constraints. The return on equity (ROE) is 3.81%, and return on assets (ROA) is 0.91%, both below the industry median for consumer finance firms, indicating suboptimal capital efficiency.

Profitability metrics show that the company's net income is INR 60.85 million, with an operating margin of 20.0% (operating income of INR 72.01 million on revenue of INR 359.96 million). These figures are below the industry median for consumer finance firms, suggesting that SRG Housing Finance Ltd is underperforming in terms of profitability relative to its peers.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to regional economic downturns and regulatory changes in the housing finance sector. The absence of segmental or geographic breakdown in the financial data limits the ability to assess risk distribution.

Growth trajectory is constrained, with no disclosed revenue growth in the most recent fiscal year. The company's outlook for the current and next fiscal years is neutral, with no significant revenue or margin expansion expected. The capital expenditure of INR 37.68 million is minimal, suggesting limited investment in infrastructure or technology to drive future growth.

Risk factors include medium liquidity risk due to negative net cash and a high debt load. The dilution risk is assessed as low, with no recent share issuance or shelf registration activity reported. However, the company's reliance on debt financing could increase financial risk in a rising interest rate environment.

Recent filings and transcripts do not indicate any material events or strategic shifts. The company's 10-K filing highlights standard risks for a housing finance firm, including credit risk and regulatory compliance. No significant earnings call transcripts or press releases have been disclosed in the latest reporting period.

Revenue grew 21.4% year-over-year to INR 1.52 billion, demonstrating strong top-line expansion momentum.

Net income increased 15.8% year-over-year to INR 244 million, indicating consistent profitability growth.

Free cash flow rose 17.4% to INR 271 million, supporting strong liquidity generation capabilities.

Total assets expanded 29.7% year-over-year, reflecting significant balance sheet growth and scale expansion.

Return on equity of 3.8% trails the consumer lending cohort median of 5.4%, indicating weak capital efficiency.

Debt-to-equity ratio of 3.16 significantly exceeds the cohort median of 1.18, signaling high leverage risk.

The company faces a high credit risk flag, suggesting potential vulnerabilities in loan quality or defaults.

Cash conversion ratio of -23.03% is in the bottom quartile, highlighting poor cash generation relative to earnings.

Revenue INR 1.25B, +36,5% YoY; Operating income +30,1% YoY.

• ▍Revenue INR 1.25B, +36,5% YoY
• ▍Operating income +30,1% YoY
• ▍Net income +23,5% YoY
• ▍Free cash flow +65,1% YoY
• ▍Net margin 16.9%

Revenue INR 913.9M, +15,4% YoY; Operating income −19,5% YoY.

• ▍Revenue INR 913.9M, +15,4% YoY
• ▍Operating income −19,5% YoY
• ▍Net income −16,1% YoY
• ▍Free cash flow −20,6% YoY
• ▍Net margin 18.7%

Revenue INR 791.9M, +7,6% YoY; Operating income +15,1% YoY.

• ▍Revenue INR 791.9M, +7,6% YoY
• ▍Operating income +15,1% YoY
• ▍Net income +7,9% YoY
• ▍Free cash flow −4,2% YoY
• ▍Net margin 25.7%

Revenue INR 736.0M; Operating income INR 220.0M.

• ▍Revenue INR 736.0M
• ▍Operating income INR 220.0M
• ▍Net margin 25.6%