#### **Company Overview** Shalibhadra Finance Limited is a **BSE-listed Non-Banking Financial Company (NBFC)** specializing in **retail asset financing** in **rural, semi-urban, and underbanked regions** of Western and Central India. With a legacy spanning over **30 years**, the company has established itself as a trusted provider of **small-ticket, high-yield financial products**, primarily focused on **mobility and livelihood enhancement**. The company operates in **Gujarat, Maharashtra, Madhya Pradesh, and Rajasthan**, serving 41 districts through **56+ company-owned branches** as of mid-2025, with plans to expand into **Goa and Karnataka** in FY24-25. Its customer base comprises **salaried individuals, agriculturists, and self-employed professionals**, targeting communities with **low financial literacy and limited banking access**. --- #### **Core Business & Product Portfolio** Shalibhadra Finance offers accessible and flexible financing solutions tailored for rural economic realities: - **Two-Wheeler Financing**: - New: ₹30,000 – ₹90,000 | Tenure: 6–30 months - Used (targeting farmers & self-employed): ₹15,000 – ₹75,000 | 6–24 months - **Three- & Four-Wheeler Loans (Used Vehicles)**: - ₹30,000 – ₹1.5 lakh | Tenure: 6–30 months (personal & commercial use) - **Consumer Durable Loans** - **Personal Loans for Salaried Rural Customers** (launched 2024) - **New Product Initiatives (FY25)**: - **Affordable Housing Finance** - **Used Tractor Loans** These products reflect a deliberate shift toward **inclusive rural financial services** and diversification beyond traditional vehicle financing. --- #### **Geographic Expansion & Branch Network** - As of **July 2025**, Shalibhadra Finance operates **56 branches** across Gujarat, Maharashtra, MP, and Rajasthan — up from 47 in FY24. - Recent expansions: - **Morbi & Mahuva (Gujarat)** – targeting agro-processing and ceramics hubs. - **Sanawad (MP)** – a key cotton-trading center. - **Akola & Buldhana (Maharashtra)** – focusing on high-potential rural populations. - **Dungarpur (Rajasthan)** – marking successful entry into new markets. - Expansion into **Rajasthan (2024)** and **planned entry into Goa & Karnataka (FY25)** demonstrate active geographic diversification. **Branch Model**: - All branches are **company-owned and operated**, no franchise or DSA model. - Each branch serves a **50 km catchment area**, ensuring proximity, trust, and operational control. - Emphasis on **hiring local rural staff** ensures cultural alignment, lowers attrition (avg. tenure: 10 years), and improves customer engagement. --- #### **Growth Strategy** Shalibhadra Finance’s growth strategy is built on **profitable, self-sustained rural-led expansion**: - **Branch Expansion Plan**: - 70 branches by **March 2026** - 100 branches by **March 2027** - **Loan Book Target**: ₹2,750 million (₹275 crores) by FY27 - **Customer Base Goal**: Over **110,000 customers** - Geographic focus on **emerging, low-competition towns** to avoid margin pressure. - Leveraging **digital credit assessment tools** and **technology-driven operations** (new LOS implemented in 2024) to streamline loan origination and disbursement. --- #### **Market Opportunity & Competitive Positioning** - **Market Gap**: Withdrawal of banks and other NBFCs from rural two-wheeler financing has created a **significant opportunity** for Shalibhadra to dominate the space. - **Dominant Player**: A **leader in two-wheeler financing** in rural Gujarat and Maharashtra. - **Unique Value Proposition**: - High-yield, small-ticket products (avg. loan size: ~₹30,000) - Rapid appraisal & disbursal - Flexible, **seasonal repayment structures** aligned with agricultural income cycles - **Informal credit rating system** supplementing CIBIL, based on rural economic behavior --- #### **Distribution & Partnerships** - **Dealer & Broker Network**: Partnerships with **410+ local dealers, brokers, and service stations** within 50 km of each branch. - These relationships are **deep-rooted**, forming a **barrier to entry** for new competitors. - Collaborations with **cooperative banks** for direct field-level collections improve recovery rates in areas with weak banking habits. --- #### **Risk Management & Financial Strength** Shalibhadra Finance maintains a **low-risk, resilient rural business model**: - **Risk Mitigation Framework**: - Customized credit norms developed over 20+ years - Small ticket sizes and **diversified portfolio** (geographic & customer) - Financing capped at **75% of vehicle value** - **Strict hypothecation** enforced - Recovery support via local partner networks - **Strong Balance Sheet**: - **Capital Adequacy Ratio (CRAR)**: 87% (Aug 2025); previously 99.1% (Mar 2025) - **Debt-to-Equity Ratio**: 0.24x (Jun 2025), indicating minimal leverage - **ROA**: 10.5% (Mar 2025), **ROE**: 12.3% (targeting 20% by FY27) - **Assets Under Management (AUM)**: ₹1,549 million (~₹155 crores) as of Mar 2025 - **Funding Advantage**: BBB (Stable) rating from ICRA (upgraded from BBB-), enabling cost-efficient borrowings. --- #### **Leadership & Governance** - **Minesh M Doshi**, Founder, Promoter & Managing Director: Over 30 years of experience in finance and socio-economic development; qualified CA & CMA. - **Vatsal M Doshi**, Executive Director: CA & CFA; instrumental in scaling branches from 24 (FY22) to over 55 (FY25); leads operations and technology initiatives. Strong family-led leadership with deep rural focus and long-term vision. --- #### **Customer & Operational Excellence** - **40% repeat customers** – a strong indicator of **trust, satisfaction, and retention**. - **Owned premises** ensure brand consistency and operational discipline. - **Technology Enhancements**: New software and LOS improve efficiency, lending spread (>11%) remains healthy despite rising funding costs. - Branches opened in the last 3 years are **not yet at full capacity**, presenting a clear **runway for near-term AUM growth**.