Arman Financial Services Limited (ARMANFIN) AI Stock Analysis

• Market Cap: ₹14.56B
• Dividend Yield: N/A
• Average Volume (3M): 1.74K
• Price to Earnings (P/E): 18.4
• Beta (1Y): 1.15
• Revenue Growth: -6.03%
• EPS Growth: -100.77%
• Country: IN
• Employees: 951
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 21.10
• Shares Outstanding: 10,512,921
• 10 Day Avg. Volume: 1,643
• 30 Day Avg. Volume: 1,739
• PEG Ratio: -0.36
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 2.28
• P/FCF Ratio: 3.01
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ₹1,502.00 ▼(-3.30% Downside)
• Action: Reiterated Date: 01/22/26
• Date: Action: Reiterated 01/22/26

The score is primarily supported by solid financial performance (revenue growth and improved cash flows), but is held back by elevated leverage on the balance sheet and weak valuation signals (negative P/E). Technicals are neutral, with mixed momentum indicators.

Positive Factors

Improved operating cash flow & healthy free cash flow

A sustained improvement to positive operating cash flow and healthy free cash flow strengthens internal liquidity and reduces dependence on external funding. For an NBFC, this durable cash-generation ability supports loan book growth, provisioning buffers, and reinvestment in branches over the coming months.

Robust gross profit margin and efficient cost management

A robust gross margin indicates the company maintains healthy spreads or low direct operating costs on lending. This structural efficiency supports margin sustainability if funding costs rise and provides room to absorb credit cost variability while preserving core profitability over a multi-month horizon.

Focused microfinance franchise with branch-led origination

A focused microfinance model and branch-led, field-based origination build deep local underwriting knowledge and client stickiness. This structural market position supports stable loan demand from underbanked segments and scalable, repeatable origination that can sustain portfolio growth over several months.

Negative Factors

Elevated leverage / high debt-to-equity

High leverage is a persistent structural risk for an NBFC: it raises refinancing and interest-rate sensitivity, narrows net interest spreads when funding costs rise, and limits flexibility to expand the loan book. This elevated debt profile could constrain capital actions and increase vulnerability to macro shocks.

Recent revenue decline

A negative revenue growth rate suggests pressure on loan growth, yields, or portfolio turnover. For a lending franchise, shrinking revenue undermines net interest income and operating leverage, making it harder to cover fixed branch and staff costs and sustain expansion in the medium term.

Sharp EPS contraction

A large decline in EPS points to earnings volatility from higher provisions, interest costs, or one-offs. Persistent EPS weakness reduces internal capital generation, weakens equity buffers and may limit reinvestment, impairing the firm's capacity to grow or absorb credit stress over coming months.

Arman Financial Services Limited Business Overview & Revenue Model

Company Description

Arman Financial Services Limited, together with its subsidiary, Namra Finance Limited, operates as a non-banking finance company in India. It offers financing for the purchase of two and three wheelers. The company also provides loans to micro, small, and medium enterprises; and group based microfinance services. It operates through a network of 239 branches and approximately 55 dealer touchpoints. The company was incorporated in 1992 and is headquartered in Ahmedabad, India.

How the Company Makes Money

Arman Financial Services Limited generates revenue through several key streams. The company earns fees from investment advisory services, where clients pay for expert guidance on asset allocation and portfolio management. Additionally, ARMANFIN charges management fees for overseeing investment funds, which are typically a percentage of the assets under management (AUM). Performance fees may also apply, particularly in hedge fund structures, where the company takes a percentage of profits above a predetermined benchmark. Furthermore, ARMANFIN may engage in partnerships with financial institutions to offer co-branded products, earning referral fees or commissions on sales. The company also benefits from interest income on financial products and services offered to clients, contributing to its overall earnings.

Arman Financial Services Limited Financial Statement Overview

Summary

Strong revenue growth and improving operating cash flow support fundamentals, but a high debt-to-equity ratio raises balance-sheet risk and keeps the score from being higher.

Income Statement

Arman Financial Services Limited shows strong revenue growth with a significant increase from the previous year. The gross profit margin is robust, suggesting efficient cost management. However, the net profit margin is moderate, indicating room for improvement in overall profitability.

Balance Sheet

The company's debt-to-equity ratio is high, reflecting a heavy reliance on debt financing which could pose a risk in interest rate hikes or economic downturns. However, the increase in stockholders' equity is a positive sign of improving financial stability.

Cash Flow

The operating cash flow has improved significantly, turning positive after a previous negative trend, indicating better cash management. The free cash flow is healthy, suggesting good liquidity, although the company should focus on sustaining this trend to ensure long-term stability.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	6.17B	6.17B	5.87B	3.89B	2.23B	1.88B
Gross Profit	2.70B	2.84B	2.64B	1.68B	957.61M	763.56M
EBITDA	2.26B	709.74M	2.30B	1.26B	465.90M	126.32M
Net Income	61.85M	520.73M	1.74B	938.11M	317.23M	106.16M
Balance Sheet
Total Assets	0.00	22.27B	26.35B	20.38B	12.41B	9.40B
Cash, Cash Equivalents and Short-Term Investments	0.00	4.52B	5.32B	4.53B	1.42B	1.55B
Total Debt	0.00	12.32B	17.25B	16.04B	9.90B	7.21B
Total Liabilities	-8.74B	13.53B	18.22B	16.72B	10.29B	7.54B
Stockholders Equity	8.74B	8.74B	8.13B	3.66B	2.13B	1.87B
Cash Flow
Free Cash Flow	0.00	4.67B	-3.05B	-7.20B	-2.82B	54.70M
Operating Cash Flow	0.00	4.93B	-3.02B	-7.18B	-2.81B	59.12M
Investing Cash Flow	0.00	-488.04M	183.80M	-126.16M	-19.68M	15.20M
Financing Cash Flow	0.00	-4.95B	3.76B	6.81B	2.70B	221.97M

Arman Financial Services Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1553.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ARMANFIN, the sentiment is Negative. The current price of 1553.2 is below the 20-day moving average (MA) of 1590.43, below the 50-day MA of 1569.15, and below the 200-day MA of 1578.27, indicating a bearish trend. The MACD of -33.81 indicates Positive momentum. The RSI at 28.28 is Positive, neither overbought nor oversold. The STOCH value of 4.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ARMANFIN.

Arman Financial Services Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
TFCILTD	66 Neutral	₹30.97B	23.71	―	0.92%	5.73%	12.29%
PAISALO	65 Neutral	₹30.40B	12.44	―	0.29%	11.75%	-6.52%
ARMANFIN	61 Neutral	₹14.56B	18.43	―	―	-6.03%	-100.77%
MUTHOOTMF	51 Neutral	₹27.00B	-9.86	―	―	-10.17%	-181.71%
SPANDANA	48 Neutral	₹20.87B	-5.67	―	―	-45.13%	-1646.01%
UGROCAP	45 Neutral	₹14.92B	13.46	―	―	33.99%	11.65%

Arman Financial Services Limited Corporate Events

Arman Financial Services Releases Unaudited Financial Results for September 2025

Arman Financial Services Limited has released its unaudited financial results for the quarter and half-year ended September 30, 2025. These results, reviewed by the audit committee and approved by the board of directors, show no changes in financial outcomes. The statutory auditor, Laxminiwas & Co., conducted a limited review, ensuring compliance with SEBI regulations. This announcement reflects the company’s commitment to transparency and regulatory compliance, potentially impacting its market perception and stakeholder confidence.