Northern Arc Capital Ltd is a non-banking finance sector company that is a part of the finance sector. The company offers various services and products to the customers. If you are looking for the opportunity to generate good returns, Northern Arc Capital’s share price target for 2024, 2025, and 2026 can help achieve the goal.
Northern Arc Capital Ltd is a small-cap company working in the finance sector. The company’s stock was listed in the stock market on Sept 24, 2024, at Rs. 350 and started falling badly.
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About Northern Arc Capital Ltd
Northern Arc Capital Ltd is a finance sector company in the finance & investment industry. The company was established in 2009. It is a small-cap company, and the company is also financially strong.
As per Northern Arc Capital Ltd, they have 320+ originators, 1100+ investors, Rs. 1.73 trillion finances enabled, and 15+ years of investing. This information is on the company’s official site as of 27 Sept 2024.
The company offers various products and services that are as follows-
Debt Products
- Term Loans
- Securitization
- Subordinated Loans
- Working Capital Loans
Structured Finance Solution
- Asset-backed securities
- Partial Credit Guarantees
- Collateralized Loan Obligations
Capital Market Services
- Bonds
- Commercial Paper
- Non-convertible Debentures
Lending Services to Financial Institutions
- Vehicle Finance
- Agriculture Finance
- Microfinance Institutions
- Affordable Housing Finance
Financing for SMEs
- Business Loan
- Supply Chain Finance
Financial Inclusion & Impact Financing
- Impact-oriented Finance
- Affordable Education Finance
Investment Services
- Managed Account
- Debt Fund Management
Note: The subsidiary companies of the Northern Arc provide some of the products and services mentioned above.
Northern Arc Capital Ltd’s Scrip Info
| NSE | NORTHARC |
| BSE | 544260 |
| ISIN | INE850M01015 |
| SECTOR | FINANCE |
Company Analysis
Below you’ll find Jio Limited’s company information like financials, fundamentals, and shareholding patterns. This information plays an important role in identifying good companies for investing.
Note: The shared information is not enough for a complete analysis of any company or stock. Kindly cross-check this information with any screener or broker.
Note: All the values are in (₹) Rupees Crore.
| Quarter | Net Profit & Loss |
|---|---|
| Sep 2023 | ₹ |
| Dec 2023 | ₹ |
| Mar 2024 | ₹ |
| Jun 2024 | |
| Sep 2024 |
| Year | Net Profit & Loss |
|---|---|
| Mar 2020 | NA |
| Mar 2021 | ₹77 |
| Mar 2022 | ₹182 |
| Mar 2023 | ₹242 |
| Mar 2024 | ₹318 |
Note: It is the company’s financial performance data, typically released every three months (quarterly) or once a year (annually).
| Market Cap | ₹4,912Cr | ROE | 13.32% |
| P/E Ratio (TTM) | 15.93 | EPS (TTM) | 19.11 |
| P/B Ratio | 1.76 | Div. Yield | 0.00% |
| Industry PE | 20.32 | Book Value | 172.59 |
| Debt to Equity | 3.91 | Face Value | 10 |
| Held By | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 |
|---|---|---|---|---|---|
| FIIs | 5.23% | ||||
| DIIs | 26.45% | ||||
| Public | 66.90% | ||||
| Promoters | 0.00% | ||||
| Other Holders | 1.41% |
Key Insights
- Zero promoter pledge.
- Company with high debt.
- Zero promoter holdings as of Sept 2024.
- The company has cash of Rs. 387.16 Crore.
- Northern Arc Capital Ltd is making a consistent profit.
- Over the years, earnings have improved for the company.
- There is a debt of Rs. 703.46 Crore and the debt-to-equity is 3.91.
Northern Arc Capital Share Price Target
On 24 Sept 2024, the stock was listed in the stock market at Rs. 350 while its IPO price range was set to Rs. 249 to Rs. 263. In other words, the stock listed in the stock market (NSE and BSE) is at a 33% premium. After getting good listing gains the investors started selling the stock and the stock is trading at Rs. 309 (market closing) as of 27 Sept 2024 which is 13-14% down from its record high.
The stock crash happened because of the massive selling as investors already got good listing gains. As per the September 2024 quarterly holding, most of the shares i.e. 66.90% held by the public, and probably they are booking profits from the stock.
| Year | Minimum Target | Maximum Target |
|---|---|---|
| 2024 | ₹370 | ₹400 |
| 2025 | ₹400 | ₹450 |
| 2026 | ₹450 | ₹500 |
Disclaimer: We are not SEBI registered, this post is only for educational purposes. We give the stock price targets based on analysts’ research, news, price action, etc. Please do research or talk to your financial advisor before making any decision.
Northern Arc Capital Share Price Target 2024
Northern Arc Capital Ltd stock has become bearish from the first day of listing in the stock market (NSE and BSE). Probably in the next few weeks, the stock may trade at a lower level from its current trading level.
Once the selling of the stock is over, then the investors may make fresh positions which can decide the trend of the stock for the short term.
In the short term, we can see stock trading near Rs. 370 to Rs. 400. It is just a probability that the stock can also trade at the same level for the next few months.
Northern Arc Capital Share Price Target 2025 and 2026
In the finance sector, there are a lot of dominating large-cap NBFC companies like Bajaj Finance Ltd, Shriram Finance Ltd, Mahindra & Mahindra Financial Services Ltd, Tata Capital Finance Service Ltd, and many more that are working in different businesses of the sector and have a strong market share.
Northern Arc Capital Ltd is a small-cap company It is also a leading company in asset under management, specializing in retail loans, and many more.
Over the years, Northern Arc Capital Ltd made a massive profit from its businesses and services. Also, the company’s net profit has grown rapidly in the last few years and will probably continue growing in the upcoming years.
The company’s profits have grown over the years, in FY2019 the company made a net profit of Rs. 115 Crore, FY21 profit of Rs. 77 Crore, FY22 profit of Rs. 182 Crore, FY23 profit of Rs. 242 Crore, and FY24 profit of Rs. 318 Crore. As you can see, in the last few years the company’s profit has grown by more than 300%.
The company is delivering good profit which is a positive point but on the company, there is high debt and as per the Sept 2024 shareholding pattern, the promoters sold their all holdings and have 0% of holdings.
In the NBFC there is very high competition but as it is a small-cap company it can deliver good returns as compared to other companies as the small-cap company reacts rapidly to any positive or negative event or news. In the long term, Northern Arc Capital’s share price target for 2025 and 2026 can trade near Rs. 450 to Rs. 500.
FAQs
Currently Northern Arc Capital is facing a huge selling after listing in the stock market due to a massive profit booking. Usually, a massive profit booking is normal in the stock which is listed at a higher premium and the competition in the industry is high.
As the company is good so, once the profit booking is over we may see Northern Arc Capital share price target of Rs. 350 to Rs. 400 in 2024.
Over the years, the income of the middle class has risen with a CAGR of 9%. By 2030 the income can reach nearly 181 million. If the income rises the demand for retail and other loan may also increase.
The NBFC credit is likely to grow by 16 – 18% CAGR from FY24 to FY26. It is a huge growth that can lead the finance sector stocks to give more returns.
As mentioned Northern Arc Capital Ltd is a small-cap company, with zero holdings by the promoters, and high debt on the company.
Except for these problems, there is no major issue in the company but as it is small-cap then during a bearish market you may face a huge loss as compared with the large-cap stocks.
Final Words
Northern Arc Capital Ltd is a small-cap company that provides various products and services to retail and small and medium enterprises. The company is profitable and the profits are rising in a row for the last 4 to 5 financial years. But on it, there is high debt, and zero promoter holdings as of Sept 2024. Check the Northern Arc Capital share price target for 2024, 2025, and 2026 based on the available data and industry growth prediction.
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