ICL Fincorp Limited Share | Buy/Sell | Live Chat
Buy - ₹20.00
Sell - ₹27.00
About ICL Fincorp Limited Share | Buy/Sell | Live Chat
1. About ICL Fincorp Limited:
ICL Fincorp Limited, established in 1999, is a prominent Non-Banking Financial Company (NBFC) based in South India. The company started its journey under the visionary leadership of Mr. K G Anilkumar, who played a significant role in the growth of the company. Originally, ICL forayed into the financial sector by acquiring Jawahar Finance Company, a Chennai-based NBFC, and expanded its offerings in the gold loan segment, which became its primary business. Today, ICL Fincorp operates more than 200 branches across Kerala, Tamil Nadu, Karnataka, Telangana, and Andhra Pradesh. The company’s diverse services include Gold Loans, Business Loans, Vehicle Loans, Money Transfer, Forex, and Tourism.
2. Business Divisions:
ICL Fincorp has successfully carved a niche for itself in the competitive financial services market, primarily due to its robust gold loan offerings. Below are some key business divisions:
- Gold Loan: The company is one of the leading providers of gold loans in South India. The interest rates for gold loans range from 9% to 28%, depending on the tenure of the loan. With a strong understanding of gold price fluctuations, ICL offers various gold loan schemes, such as the ICL Vanitha-Suraksha and ICL Suvarna Gold Loan.
- Business Loans: ICL offers tailored business loans to small and medium enterprises (SMEs). These loans range from ₹10,000 to ₹5 lakh and are designed to help entrepreneurs meet their growing financial needs.
- Vehicle Loans:Â The company provides two-wheeler loans with a repayment tenure of one year. The loans are offered with competitive interest rates, catering mainly to salaried professionals and self-employed individuals.
- Other Services:Â In addition to loans, ICL Fincorp also offers money transfer services, forex, and health insurance through its associates.
3. Financial Highlights of ICL Fincorp Limited Unlisted Shares:
The financial performance of ICL Fincorp has been strong, demonstrating consistent growth in its asset book and profitability. Here are the key financial highlights:
- Revenue Growth: The company’s revenue has shown a steady increase, growing from ₹76 crore in FY21 to ₹83 crore in FY22, indicating positive business expansion.
- Profitability: In FY22, ICL Fincorp earned a Profit After Tax (PAT) of ₹2.7 crore, an increase from ₹2.6 crore in the previous year. The company’s Earnings Per Share (EPS) stood at ₹0.61, reflecting its profitability.
- Asset Growth: The company’s Advances (loans) grew from ₹30,164 crore in FY21 to ₹35,168 crore in FY22. This growth is a testament to the increasing demand for ICL’s gold loan services.
- Non-Performing Assets (NPA): ICL Fincorp has maintained a Gross NPA ratio of 0% in FY21 and FY22, highlighting the low-risk nature of its gold loan business. The company’s Net NPA stood at a modest 1.9% in FY22, which is significantly lower than industry standards.
- Valuation: As of FY22, the current market price of ICL Fincorp’s unlisted shares is ₹26 per share, with a P/B ratio of 1.47x and a Book Value of ₹18.27 per share. These financial metrics suggest that the company is valued relatively fairly, considering its strong asset base and growth prospects.
Disclaimer*This research has been conducted on available data. Investors are advised to perform their own research and due diligence before making any investment decisions. We are not responsible for any financial losses or inaccuracies in the data provided
Pros
- Strong Gold Loan Portfolio: With more than 90% of its loan book secured by gold, ICL Fincorp’s business model is relatively less risky compared to other lenders in the industry. The gold-backed loan structure provides a cushion against defaults.
- Geographic Presence:Â ICL Fincorp has a strong presence across South India with more than 200 branches and a robust employee base. Its expansion plans further aim to open 1,000 branches across India by the end of 2022.
- Asset Quality Focus:Â The company has consistently maintained asset quality, and its Non-Performing Assets (NPA) are below industry standards, which adds to its financial stability.
Cons
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High Reliance on Gold Loans: Over 90% of loans are gold-backed, making profitability vulnerable to gold price fluctuations and market downturns.
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Limited Geographic Reach: Operations are mainly in South India, limiting national presence due to regional competition and regulatory challenges in expansion.
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Interest Rate Sensitivity: High-interest gold loans risk defaults during economic downturns, potentially increasing non-performing assets and affecting financial stability.
