Northern Arc Capital Ltd. (IN:NORTHARC)
:NORTHARC
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Northern Arc Capital Ltd.
(NORTHARC)
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Rating:66Neutral
Price Target:
₹335.00
▲(38.12% Upside)
Action:Reiterated
Date:05/12/26
The score is driven by solid profitability and cash conversion, but is held back by high and rising leverage on the balance sheet. Technicals show strong upside momentum, though signals are overextended, and valuation looks supportive given the low P/E.
Positive Factors
Cash Generation
Near parity of free cash flow and net income indicates the company converts reported earnings into cash effectively. Durable cash conversion supports ongoing lending operations, servicing obligations, reinvestment in originator partnerships, and reduces reliance on external short-term liquidity over the medium term.
Negative Factors
High Leverage
An aggressive capital structure with debt-to-equity north of 3x increases sensitivity to higher funding costs and credit cycles. Elevated leverage constrains strategic optionality, raises refinancing risk for securitizations and limits buffer for underwriting losses, impeding durable balance-sheet resilience.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
Near parity of free cash flow and net income indicates the company converts reported earnings into cash effectively. Durable cash conversion supports ongoing lending operations, servicing obligations, reinvestment in originator partnerships, and reduces reliance on external short-term liquidity over the medium term.
Read all positive factors
Northern Arc Capital Ltd. (NORTHARC) vs. iShares MSCI India ETF (INDA)
Market Cap
₹44.59B
Dividend YieldN/A
Average Volume (3M)73.88K
Price to Earnings (P/E)8.3
Beta (1Y)1.31
Revenue Growth14.63%
EPS Growth0.16%
CountryIN
Employees3,118
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)8.09
Shares Outstanding161,571,870
10 Day Avg. Volume46,917
30 Day Avg. Volume73,882
Financial Highlights & Ratios
PEG Ratio0.34
Price to Book (P/B)0.86
Price to Sales (P/S)1.24
P/FCF Ratio1.76
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹360.00Price Target Upside48.42% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)32.95
Revenue Forecast (FY)₹24.02B
Northern Arc Capital Ltd. Business Overview & Revenue Model
Company Description
Northern Arc Capital Limited operates as a non-banking financial company in India. It operates through Financing Activity, Investment Advisory Services, and Investment Management Services segments. The company offers lending and allied services, s...
How the Company Makes Money
Northern Arc Capital makes money primarily by extending credit and by earning fees for arranging and servicing financing through its platform. A key revenue stream is net interest income: the company borrows funds (from banks, capital markets, and...
Northern Arc Capital Ltd. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
46
Neutral
Cash Flow
70
Positive
| Breakdown | TTM | Mar 2025 | Mar 2025 |
|---|---|---|---|
Income Statement | |||
| Total Revenue | 9.83B | 27.00B | 20.45B |
| Gross Profit | 4.31B | 14.54B | 7.11B |
| EBITDA | 1.09B | 5.54B | 4.07B |
| Net Income | 1.29B | 4.06B | 3.05B |
Balance Sheet | |||
| Total Assets | 143.62B | 167.45B | 136.38B |
| Cash, Cash Equivalents and Short-Term Investments | 5.70B | 4.97B | 18.82B |
| Total Debt | 103.31B | 122.58B | 98.60B |
| Total Liabilities | 106.96B | 128.44B | 101.99B |
| Stockholders Equity | 36.63B | 38.96B | 34.34B |
Cash Flow | |||
| Free Cash Flow | -5.17B | 19.13B | 18.94B |
| Operating Cash Flow | -4.97B | 19.28B | 19.12B |
| Investing Cash Flow | -7.24B | -43.73B | -32.58B |
| Financing Cash Flow | 11.03B | 22.92B | 15.86B |
Northern Arc Capital Ltd. Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | ₹24.44B | 4.63 | ― | ― | 22.27% | 78.47% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | ₹44.59B | 8.27 | ― | ― | 14.63% | 0.16% | |
66 Neutral | ₹207.09B | 23.81 | ― | 0.77% | 5.00% | 45.78% | |
66 Neutral | ₹56.32B | 12.88 | ― | 0.43% | 25.13% | 17.12% | |
59 Neutral | ₹30.61B | 24.60 | ― | ― | -3.48% | ― | |
47 Neutral | ₹22.59B | -2.02 | ― | ― | -56.02% | 33.35% |
* Financial Sector Average
IN:NORTHARC
Northern Arc Capital Ltd.
275.95
70.85
34.54%
IN:CREDITACC
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IN:MASFIN
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310.40
22.88
7.96%
IN:MUTHOOTMF
Muthoot Microfin Ltd
179.55
49.30
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IN:SATIN
Satin Creditcare Network Ltd
222.25
55.90
33.60%
IN:SPANDANA
Spandana Sphoorty Financial Ltd.
254.85
-17.90
-6.56%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.