Arman Financial Services Limited is an Indian-based non-banking finance company (NBFC). It focuses primarily on financing in rural and semi-rural areas. Arman Services offers financial solutions to improve its customers’ lives, families' futures, and communities.
The company grants loans designed to enhance its customers' livelihood. It gives loans through vehicle finance and microfinance. It provides financial services to people who are traditionally underserved by conventional banking systems.
Operations
Arman Financial operates as a non-banking finance company. It works alongside its subsidiary company “Namra Finance Limited”. It offers a range of financial products. These include microfinance, MSME loans, and two and three-wheeler finance. These services cater to a diverse clientele across India. The company's operations are widespread. They utilize both branch and dealer networks for service delivery. Here's a summary of their main operations:
Vehicle Finance
Arman Services provides financing options for a variety of vehicles. These include motorcycles, mopeds, and scooterettes. They also include scooters from major manufacturers like Hero, Honda, Bajaj, TVS, HMSI, Suzuki, Yamaha, and Royal Enfield. This service is targeted at customers who need vehicles for personal use or as a means of livelihood.
Microfinance
It offers microfinance products through Namra Finance Ltd. Namra is their wholly-owned subsidiary. These are income-generating group loans targeted at the bottom of the pyramid customers. Arman Financial provides the financially underserved with the capital needed to start or expand small businesses. This improves their economic condition.
MSME Financing
The company offers loans to micro, small, and medium enterprises (MSME Finance). These enterprises are crucial for the economic growth and job creation in their operating regions. This service focuses on providing financial assistance to small businesses for expansion, working capital, or equipment financing. This helps to boost local economies and support entrepreneurship.
Competitors
Arman Financial faces competition from other NBFCs and microfinance institutions operating in similar sectors. Competitors include both companies that provide financial services to rural and semi-urban customers. They also include those offering vehicle finance and loans to small and medium enterprises. Some of its competitors in the financial markets include:
Dhani Services Ltd.
Dhani Services offers digital healthcare and financial services including personal loans, credit lines, and insurance products.
PTC India Financial Services Ltd.
PTC provides financial services to the power sector. This includes project finance, equity, and advisory services.
Repco Home Finance Ltd.
Repco specializes in housing finance. It offers a range of home loan products to individuals and corporations.
Satin Creditcare Network Ltd.
This company is a leading microfinance institution in India. This also provides loans to underserved rural and semi-urban areas.
Centrum Capital Ltd.
Centrum Capitan is engaged in various financial services. These services are investment banking, wealth management, and institutional broking.
IndoStar Capital Finance Ltd.
This company also offers a wide range of financing services. Their services include corporate lending, SME lending, vehicle financing, and housing finance.
Leadership & Key Executives
The leadership and management of this company are led by a team of experienced executives. Moreover, the company benefits from diverse and experienced teams that manage various critical operations.
Their leadership includes Mr. Jayendrabhai B. Patel serving as the Vice Chairman and Managing Director. He has a rich background in finance and business operations. Mr. Patel has defined the strategic direction of Arman Financial Services.
Whereas, Mr. Vivek A. Modi leads the company as the Chief Financial Officer. His role involves overseeing the company's financial operations, risk management, and fiscal planning.
Financial Position
Arman Financials has shown financial growth and a positive performance in the stock market. The company has experienced a compounded sales growth of 79% over the trailing twelve months (TTM).
Similarly, it has demonstrated a compounded profit growth of a substantial 115% TTM. The ROE has been strong showing an exceptional 33% in the last year.
Moreover, the company's market capitalization stood at 22.69 billion INR. Arman Financial Services share price has shown a compound annual growth rate (CAGR) of 42% over the last year.
Conclusion
To conclude, Arman Financial Services Ltd. It is a financial company that operates mainly in rural and semi-rural areas. It offers services like microfinance, vehicle finance, and more to people who are underserved by banking institutions. The company has several competitors in the market that also provide similar financial services. The company is led by experienced executives and so the company grows financially.