Hindon Mercantile Bank
BUY
₹835.00
SELL
₹869.00
About Hindon Mercantile Bank
1. About
Hindon Mercantile Limited (HML), incorporated in 1985 and acquired by Mr. Kapil Garg in 2019, is a Non-Deposit taking Non-Banking Financial Company (NBFC-ND) registered with the Reserve Bank of India. Headquartered in New Delhi, HML primarily engages in offering secured and unsecured loans including wholesale lending, MSME financing, mediclaim premium financing, and corporate loans. It is also the parent company of Mufin Green Finance Limited, holding a 54.44% stake as of March 2024.
2. Business Divisions
HML operates through the following key lending verticals:
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EV Financing: Loans for electric vehicles form ~76% of its AUM.
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MSME and Business Loans: Secured and unsecured financing solutions for businesses.
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Other Lending Products: Includes Solar Panel loans, Mediclaim Premium Financing, and Infrastructure loans for E-vehicles.
The company has a branch-light, digital-first model and services over 47,000+ customers across 20 states via OEM and dealer networks.
Pros
- Strong Capital Infusion: Raised ₹223.65 Cr in 9MFY25, significantly boosting net worth and capital adequacy.
- Healthy AUM Growth: AUM rose from ₹675.78 Cr (FY24) to ₹1021.87 Cr (9MFY25) driven by robust disbursements.
- Focus on Green Finance: Strategic positioning in the EV and solar financing space supports ESG alignment and future growth potential.
Cons
- Geographic Concentration: Over 50% of AUM concentrated in Uttar Pradesh, Delhi, and Bihar increases regional risk exposure.
- Low Portfolio Seasoning: Rapid growth in recent years means limited track record of asset performance under stress cycles.
- Moderate Scale: Despite growth, operations remain moderate in size compared to larger peers in the NBFC sector.
