Midland Microfin Limited
Midland Microfin Limited
INE884Q01015
Listing Status: DRHP Not Filed
About Midland Microfin Limited
Overview of Midland Microfin Limited
Midland Microfin Limited (MML), headquartered in Jalandhar, Punjab, is a leading microfinance institution focused on empowering women financially and socially. Since its establishment in January 2011, MML has operated as a Systemically Important Non-Deposit taking NBFC under RBI regulation, offering savings, loans, insurance, and other financial services across India.
- Focus on Small Business Loans: Primarily supports women entrepreneurs to ignite entrepreneurship and foster economic independence.
- Expansive Reach: Operates 329 branches across 12 States and 2 Union Territories: Punjab, Haryana, Madhya Pradesh, Rajasthan, Uttarakhand, Himachal Pradesh, Uttar Pradesh, Bihar, West Bengal, etc. The Company expanded its network by 55 branches to 329, including new territories like Odisha and Jammu & Kashmir, while also improving operational efficiency.
- Significant Growth: Achieved 71% portfolio growth with an asset base of Rs. 1939 crores as of March 31, 2023.
- Commitment to Compliance: Upholds regulatory integrity while expanding services to diverse regions.
Company Name | MIDLAND MICROFIN LIMITED |
Company Type | Unlisted Public Company |
Industry | Finance |
Founded | 1988 |
Registered Address | Jalandhar, Punjab, India |
Website | www.midlandmicrofin.com |
Product Portfolio
Midland Microfin Limited provides a range of customer-centric and need-based products, aimed at enhancing the standard of living and increasing income for its customers.
Loan Product | Purpose | Ticket Size | Tenure |
---|---|---|---|
Business Loan | Empowers rural women entrepreneurs to meet business needs like equipment, stock, and working capital. | Rs. 11K – 70K | 12 – 24 Months |
Individual Loan | Supports business expansion for graduates of the Joint Liability Group (JLG) Model. | Rs. 60K – 1.5 Lakhs | 24 Months |
Water Supply and Sanitation | Contributes to Swachh Bharat by financing household-level toilets, water facilities, and sanitation. | Rs. 10K – 30K | 6 – 18 Months |
Dairy Loan | Helps in acquiring additional cattle and includes Cattle Insurance for protection. | Rs. 60K – 1.5 Lakhs | 24 Months |
Education Loan | Financial aid for students pursuing post-secondary or higher education. | Rs. 10K – 20K | 12 Months |
Social Impact Products | Provides access to clean energy, healthcare, and sanitation resources like solar lights. | Rs. 1K – 5K | 6 – 9 Months |
PM Svanidhi Loan | Supports street vendors' livelihoods, promoting socio-economic upliftment. | Rs. 10K – 15K | 12 Months |
Ajeevika Loan | Financial assistance for Scheduled Castes, Tribes, and Backward Classes to promote inclusive growth. | Rs. 30K – 40K | 12 – 24 Months |
Board of Directors
Industry Overview
- Industry Growth: By March 2023, the Indian microfinance sector's gross loan portfolio reached Rs 3,48,339 crore, reflecting a 22.0% year-on-year growth.
- NBFC-MFIs: The leading contributors to micro-credit, with an outstanding loan amount of Rs 1,38,310 crore.
- Banks and SFBs: Banks have an outstanding loan amount of Rs 1,19,133 crore, while Small Finance Banks (SFBs) hold Rs 57,828 crore, playing a significant role in microfinance.
- Sector Transformation: The microfinance sector has seen increased client numbers, higher loan disbursements, and improved Asset Under Management (AUM) with a reduction in Portfolio at Risk over 30 days.
- Client and Loan Statistics: As of March 2023, 3.9 crore clients had outstanding loans from NBFC-MFIs (20.0% increase from 2022). AUM reached Rs 1,31,163 crore, up 38.7% YoY, and Rs 1,30,563 crore was disbursed in FY 22-23, marking a 59.3% increase from FY 21-22. The average loan amount disbursed per account was Rs 42,010, up 12.9% from the previous year.
SWOT Analysis
Insights of Midland Microfin Limited
Financial Highlights
₹ in Cr.
Financials | 31st March, 2024 | 31st March, 2023 | % increase |
Revenue | 532.76 | 394.41 | 35% |
PAT | 72.155 | 46.83 | 54% |
EPS | 15.53 | 10.7 | 45% |
EBITDA | 302.11 | 232.47 | 30% |
PAT Margins | 13.54% | 11.87% | 14% |
The company has earned a Gross Total Income of Rs. 394.91 Crore for the year ended March 31, 2023, as compared to Rs. 219.78 Crore as on March 31, 2022 registering a growth of 79.69%. The contributing factor to this growth in income was an increase in the interest income on the JLG loan portfolio. Further, the company has registered a growth of 109% in fees income of Credit Plus Products which has increased to Rs.17.90 Crore from Rs. 8.57 Crore.
Operational Highlights
Particulars | March 31, 2023 | March 31, 2022 | March 31, 2021 |
---|---|---|---|
Number of Borrowers | 7,00,677 | 4,97,495 | 4,13,964 |
Maximum Loan Amount (Rs.) | |||
– Individual Loans | 1,50,000 | 1,50,000 | 1,50,000 |
– Joint Liability Group | 70,000 | 50,000 | 50,000 |
Average Ticket Size (Rs.) | 42,392 | 32,731 | 24,859 |
Cumulative Loan Disbursement (Rs. In crore) | 7046.39 | 5096.75 | 3758.26 |
Outstanding Loan Portfolio (Own Book) (Rs. In crore) | 1536.76 | 1059.41 | 773.90 |
Managed Portfolio (Rs. In crore) | 252.68 | 78.00 | 25.26 |
Gross Loan Portfolio (Rs. In crore) | 1939.41 | 1137.41 | 799.17 |
Loan Disbursed in FY (Rs. In crore) | 1949.63 | 1338.50 | 688.82 |
Total Assets (Rs. In crore) | 1990.21 | 1569.34 | 1099.81 |
Summary of Disbursement and Growth in FY 2022-23
During FY 2022-23, loan disbursals totaled Rs. 1949.63 crore, a significant increase of 45.66% compared to the previous year’s disbursals of Rs. 1338.50 crore. The cumulative disbursement by March 31, 2023, amounted to Rs. 7046.39 crore, reflecting a growth of 38.25% from the previous year’s cumulative disbursements of Rs. 5096.75 crore as of March 31, 2022. This growth can be attributed to a rise in the number of branches by 55 and an increase in disbursement per branch to Rs. 5.9 crore, up from Rs. 4.9 crore per branch previously.
Top 5 and other Disbursement till date:
STate | Disbursement (Rs. In Crore) |
---|---|
Punjab | 2234.47 |
Bihar | 1799.88 |
Rajasthan | 1025.32 |
Uttar Pradesh | 910.44 |
Haryana | 569.37 |
Others | 506.81 |
Total | 7046.29 |
Peer Comparison
Particulars | Midland Microfin | Fusion Micro Finance Ltd |
Revenue | 533 Cr. (Approx) | 2412 Cr. (Approx) |
PAT | 72 Cr. (Approx) | 505 Cr. (Approx) |
EPS | 15.53 | 50.11 |
EBITDA | 302 Cr. (Approx) | 1463 Cr. (Approx) |
PAT Margins | 13.54% | 20.9% |
Share Price | 193 | 314 |
Outstanding shares | 5 Cr. (Approx) | 10 Cr. (Approx) |
MCAP | 1011 Cr. (Approx) | 3160 Cr. (Approx) |
P/E Ratio | 12.43 | 9.06 |
P/S Ratio | 1.90 | 1.31 |
P/B Ratio | 2.07 | 1.11 |
Book value per share | 93 | 283 |
Financial Charts of Midland Microfin Limited
Balance Sheet of Midland Microfin Limited
Profit and Loss of Midland Microfin Limited
Ancillary of Midland Microfin Limited
Ratio Analysis
Peers
Industry Benchmarking
Segment Revenue
Subsidaries
Security Allotment
Corporate Governance
Team Management Details
FAQs of Midland Microfin Limited
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How to buy Midland Microfin Limited?
Below are three ways through which you can purchase Midland Microfin Limited:
- We at Altius Investech have many actively traded scripts and are market makers of unlisted shares. To check out all the unlisted shares traded. (Click on link). To submit a request to buy Midland Microfin Limited, please click on the trade button at the top of this page
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Download the Altius App here https://onelink.to/hf4m72 - You can also reach out to us at : +91 8240614850 / +91 8240861716
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How to sell Midland Microfin Limited?
Below are three ways through which you can sell Midland Microfin Limited:
- We at Altius Investech have many actively traded scripts and are market makers of unlisted shares. To check out all the unlisted shares traded. (Click on link). To submit a request to sell Midland Microfin Limited, please click on the trade button at the top of this page
- Additionally, you can download our app from your play store or app store, register on our application, and engage in active trading there.
Download the Altius App here https://onelink.to/hf4m72 - You can also reach out to us at : +91 8240614850 / +91 8240861716
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What is the price of Midland Microfin Limited?
We provide a two way quote on all the shares we deal in. Your buy price for Midland Microfin Limited is ₹193 and your sell price for Midland Microfin Limited is ₹145. The price is based on our estimates and market conditions.
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What is the lock-in period of Midland Microfin Limited?
The lock-in period for Midland Microfin Limited varies depending on the category of investors:
- For retail Investors, HNIs, or Body Corporates, the lock-in period is 6 months from the date of the listing of Midland Microfin Limited
- For Venture Capital Funds or Foreign Venture Capital Investors, there is a lock-in period of 6 months from the date of acquisition of Midland Microfin Limited
- For AIF-II (Alternative Investment Funds - Category II), there is no lock-in period
August 2021 saw the introduction of this regulation by SEBI. The purpose of the regulation change, which lowered the lock-in period from a year to six months, was to incentivize additional investments in firms getting ready for initial public offerings, or IPOs. Since its introduction, a number of Portfolio Management Services (PMS) have advised their clients to purchase Pre-IPO shares in order to take advantage of the advantages associated with early-stage investments. This reduction in the lock-in period is considered as a significant step forward.
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How is the Midland Microfin Limited price calculated?
Fundamental & Comparative valuation models and the forces of demand and supply in the market for unlisted shares dictate the price. These prices are based on our estimates and transaction history of Midland Microfin Limited. The price is also determined from the most recent funding round for Midland Microfin Limited. This provides us with a benchmark valuation, offering a clear indication of the company's current market value as perceived by investors and industry experts.
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What are the lot sizes of Midland Microfin Limited?
We can generally arrange lot sizes starting with an investment of INR 20,000. To confirm the lot sizes of Midland Microfin Limited with us kindly click here.
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What are the financials of Midland Microfin Limited?
The financials of Midland Microfin Limited which includes the P/L of Midland Microfin Limited and the Balance Sheet of Midland Microfin Limited is in the financials section (Click on link).
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Where can I find the annual report of Midland Microfin Limited?
The annual report of Midland Microfin Limited is available in the annual report section (Click on link).
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Is buying Midland Microfin Limited legal in India?
Yes, buying and selling unlisted shares in India is indeed 100% legal. This activity is regulated and governed under the guidelines provided by the Securities and Exchange Board of India (SEBI). Investors and traders must adhere to these regulations and guidelines to ensure compliance with legal and financial standards. It's important for participants in the unlisted share market to be aware of and understand these regulations to engage in transactions legally and securely.
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Short-term Capital Gain taxes to be paid on Midland Microfin Limited?
When you sell unlisted shares within a period of two years from the date of acquisition, any profit earned from the sale is classified as Short-term Capital Gain (STCG). This gain is then added to your total income for that financial year. The tax on this short-term capital gain is calculated based on your applicable individual income tax slab rates. Therefore, the rate at which you will pay tax on the STCG from unlisted shares depends on your total income, including this gain, and the tax slab it falls under as per the prevailing income tax laws in India. It's important for investors to consider these tax implications when engaging in transactions involving unlisted shares.
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Long-term Capital Gain taxes to be paid on Midland Microfin Limited and how are They Taxed?
Long-term Capital Gains (LTCG) on unlisted shares in India refer to the profits earned from the sale of unlisted shares that have been held for more than two years. The key aspects of LTCG on unlisted shares include:
- Tax Rate: LTCG on unlisted shares is taxed at a rate of 20%.
- Indexation Benefit: This is a significant advantage for investors. Indexation allows for adjusting the purchase price of the shares for inflation, which can reduce the taxable gain.
- Importance for Investors: Understanding LTCG is crucial, especially for High Net-worth Individuals (HNIs) and retail investors, as it impacts their investment strategy and tax planning. Knowing these details helps in making informed investment decisions.
- Calculation: LTCG is calculated by subtracting the indexed cost of acquisition (the purchase price adjusted for inflation) from the sale price of the shares. The profit thus calculated is subject to a 20% tax.
- Applicability: LTCG tax is applicable to profits from the sale of unlisted shares held for more than two years.
- Relevance: This tax is particularly relevant to investors in the unlisted share market, including those considering selling their holdings after a period of more than two years.
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Applicability of Taxes on Midland Microfin Limited once it is listed?
When shares initially bought in the unlisted market become listed, the taxation rules change significantly if these shares are sold through a stock exchange. Here's what investors need to know:
Transition to Listed Market Tax Rates: Once unlisted shares are listed on the stock exchange and subsequently sold, the tax rates applicable to listed securities come into effect. This shift means that the favourable tax treatments for listed shares, as per the prevailing tax laws, will apply.
Taxation Based on Holding Period: The crucial factor in determining the type of capital gains tax (Long-term or Short-term) is the holding period of the shares. Importantly, this period is calculated from the original purchase date when the shares were unlisted.
Long-term vs. Short-term Capital Gains: If the shares are sold after being held for more than one year from the date of purchase (including the period when they were unlisted), they are subject to Long-term Capital Gains (LTCG) tax.
Conversely, if sold within one-year, Short-term Capital Gains (STCG) tax rates apply.
Significance for Investors: This information is vital for investors in the unlisted market, as it impacts their tax planning and decision-making process. Understanding these nuances ensures that investors can strategically plan the sale of their shares post-listing to optimize tax implications.
Advice for Investors: It's advisable for investors to keep a record of their purchase dates and monitor the listing dates closely. Additionally, staying updated with the latest tax regulations or consulting with a financial advisor is recommended for accurate tax calculations and compliance. -
How does Altius Investech source Midland Microfin Limited?
At Altius Investech, our approach to sourcing Boat Unlisted Share (Imagine Marketing) involves a strategic and direct method. Primarily, we acquire these shares from the below key groups:
Employees of the Company: Employee stock option plans (ESOPs) or other compensation packages frequently include shares for firm employees. For a various reasons, such as including portfolio diversification or financial considerations, some of these employees may eventually choose to sell their shares. We engage with these employees, providing them a platform to sell their shares.
Initial Investors: These are the angel or early-stage investors who provided capital to the business in its early stages. These original investors may look to sell all or part of their ownership position in the company as it develops and flourishes. This might be done for various reasons such as in order to maximise their investment, reallocate resources, or make other calculated financial decisions.
Funding rounds and VC funds: Altius Investech sources the shares from private placement rounds in which private companies seek to obtain capital from the market. Through our platform, venture capital funds can liquidate their shares and we receive the inventory from them when they decide to sell a portion of their ownership through block trades.
By establishing connections with these groups, Altius Investech guarantees our clients a steady and dependable supply of Boat Unlisted Share (Imagine Marketing). This process not only makes it easier for employees and initial investors in liquidating their assets, but it also gives our clients access to shares that aren't often found on the open market. Our platform effectively facilitates a win-win situation for both buyers and sellers. -
How to trust Altius Investech before buying Midland Microfin Limited from its platform?
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With more than 25 years of experience, Altius Investech has carved a niche in the financial market by serving more than 8000 clients. The incredible journey is further highlighted by the vast number of transactions that Altius Investech has facilitated transactions that have already exceeded 300 crores.
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