MAS Financial Services Ltd is a Gujarat-headquartered NBFC with more than two decades of business operations. As of June 30, 2017, it operated across six States and the NCT of Delhi. The business and financing products are primarily focused on middle and low income customer segments, and include five principal categories: (i) micro-enterprise loans; (ii) SME loans; (iii) two-wheeler loans; (iv) Commercial Vehicle loans (which include new and used commercial vehicle loans, used car loans and tractor loans); and (v) housing loans. The company’s promoters have significant operational experience in the financial services sector in India.



  • Track record of consistent growth with quality loan portfolio.
  • Diversified product offerings presenting significant growth opportunities.
  • Access to diversified sources of capital and cost-effective funding.
  • Deep market knowledge through extensive sourcing channels.
  • Robust credit assessment and risk management framework.

Key Highlights:

  • The company has generated total revenue of Rs 364.7 crore for March 2017 vs 304.2 crore in March 2016, shows growth of almost 20%.
  • The company has reported profit after tax of Rs 68.6 Cr and 50.8 Cr for the year 2017 and 2016 respectively.

Risk Factors:

  • There are outstanding legal proceedings involving their Company, Promoters, Directors and Subsidiary which are incidental to their business and operations. These proceedings are pending at different levels of adjudication before various courts, tribunals and appellate tribunals.
  • Their business operations involve transactions with relatively high risk borrowers. Any default from their customers could adversely affect their business, results of operations and financial condition.
  • They extend loans to other financial institutions such as MFIs, NBFCs and HFCs. If there is a default by these financial institutions or if they are unable to maintain their relationships with these institutions, their business, financial condition and results of operations may be adversely affected


MAS offer a diverse range of financial products and services targeted at the low and middle income customer segments.

As of March 31, 2017 and June 30, 2017 company’s SME loan segment represented 22.92% and 24.23%, micro-enterprise loans represented 59.56% and 57.81%, two-wheeler loans represented 8.56% and 9.25%, Commercial Vehicle loans represented 3.66% and 3.54%, and housing loans represented 5.29% and 5.17%, respectively, of their AUM as of such dates.

As of March 31, 2017 and June 30, 2017, their AUM was ₹ 3332.56 cr and ₹ 3451.74 cr, respectively. Company’s AUM increased at a CAGR of 33.37% from ₹ 1053.19 cr as of March 31, 2013 to ₹ 3332.56 cr as of March 31, 2017. As of June 30, 2017 MAS had more than 500,000 active loan accounts, across more than 3,165 Customer Locations in six States and the NCT of Delhi, served through their 121 branches.

AUM in micro-enterprise, SME, two-wheeler, Commercial Vehicle and housing loan segments increased at a CAGR of 32.14%, 137.64%, 5.86%, 2.62% and 44.09% from March 31, 2013 to March 31, 2017, respectively.

Company’s CRAR as of March 31, 2015, 2016, 2017 and June 30, 2017 were 18.14%, 18.27%, 22.96% and 23.80%, respectively. Company’s Net NPA /AUM stood at 0.96% as on June 2017. Net NPA/AUM for March, 2017 was at 0.92% vs 0.89% in March 2016.

On the performance front, at the asking price company is available at PE x of 36.6 times with P/BV of 6.9x, which looks fully priced on comapring with other listed players. Hence, “subscribe” recommendation can be given at moderate level of investing for medium to long term investment purpose.


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