Aye Finance
BSE: AYE · Non Banking Financial Company (NBFC)
Snapshot
Unlock Aye Finance's vital signs
Growth · Profitability · Valuation · Strength · Conviction
Company Overview
Business
Aye Finance is a Delhi-based NBFC-Middle Layer that provides secured and unsecured small business loans to micro-scale MSMEs. The company focuses on financing working capital and business expansion requirements for small-scale enterprises across India.
Business Model
The company generates revenue primarily through interest income earned on small-ticket business loans provided to micro-enterprises. It leverages a lending model that includes mortgage, property, and hypothecation loans to mitigate credit risk.
- Average disbursement size:₹1.8 lakh
Growth Outlook
Growth is driven by the increasing credit demand from the underserved micro-MSME sector in India. The company continues to expand its reach to provide financial inclusion to small businesses requiring capital for operational growth.
Key Risks
- Credit Risk. The company faces significant exposure to default risks given its focus on the micro-MSME segment, which often lacks formal credit histories.
- Regulatory Risk. As an NBFC-Middle Layer, the company is subject to stringent RBI regulations that may impact its liquidity and capital adequacy requirements.
- Interest Rate Risk. Fluctuations in interest rates can impact the company's net interest margins and the affordability of loans for its micro-enterprise borrowers.
- Operational Risk. The high-touch model required to assess and service small-ticket loans across diverse geographies presents significant operational and collection challenges.
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Peers · Non Banking Financial Company (NBFC)
| Company | Mkt Cap | P/E | EV/EBITDA | Rev Gr YoY | EBITDA Mgn | ROE | ROCE | 1Y Return |
|---|---|---|---|---|---|---|---|---|
Aye FinanceAYE | ₹4,561 Cr | — | — | — | — | — | — | — |
MAS Financial Services LimitedMASFIN | ₹5,353 Cr | 14.34 | — | 25.0% | — | 13.5% | — | -5.0% |
Northern Arc Capital LtdNORTHARC | ₹4,883 Cr | 12.01 | — | 15.1% | — | 11.0% | — | +24.4% |
SG FinserveSGFIN | ₹4,453 Cr | 25.45 | — | 106.3% | — | 12.7% | — | +78.9% |
IndoStar Capital Finance LimitedINDOSTAR | ₹4,180 Cr | -10.70 | — | -1.5% | — | -10.6% | — | +0.5% |
Dhenu Buildcon Infra LimitedDHENUBUILD | ₹3,857 Cr | 21.67 | — | 7200.0% | — | -0.3% | — | +10.2% |
Financials
Aye Finance
BSE: AYE · Non Banking Financial Company (NBFC)
Snapshot
Unlock Aye Finance's vital signs
Growth · Profitability · Valuation · Strength · Conviction
Company Overview
Business
Aye Finance is a Delhi-based NBFC-Middle Layer that provides secured and unsecured small business loans to micro-scale MSMEs. The company focuses on financing working capital and business expansion requirements for small-scale enterprises across India.
Business Model
The company generates revenue primarily through interest income earned on small-ticket business loans provided to micro-enterprises. It leverages a lending model that includes mortgage, property, and hypothecation loans to mitigate credit risk.
- Average disbursement size:₹1.8 lakh
Growth Outlook
Growth is driven by the increasing credit demand from the underserved micro-MSME sector in India. The company continues to expand its reach to provide financial inclusion to small businesses requiring capital for operational growth.
Key Risks
- Credit Risk. The company faces significant exposure to default risks given its focus on the micro-MSME segment, which often lacks formal credit histories.
- Regulatory Risk. As an NBFC-Middle Layer, the company is subject to stringent RBI regulations that may impact its liquidity and capital adequacy requirements.
- Interest Rate Risk. Fluctuations in interest rates can impact the company's net interest margins and the affordability of loans for its micro-enterprise borrowers.
- Operational Risk. The high-touch model required to assess and service small-ticket loans across diverse geographies presents significant operational and collection challenges.
Start your research today
Unlock AI insights, financials, peers and live data on Aye Finance and 5,000+ companies — free.
Peers · Non Banking Financial Company (NBFC)
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