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Northern Arc Capital Ltd.
(NORTHARC)
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Rating:61Neutral
Price Target:
₹258.00
▼(-9.57% Downside)
Action:Reiterated
Date:08/17/26
The score is led by solid operating profitability and good cash conversion, but is held back by high and rising leverage, which is a key risk for a credit services business. Technical indicators add a near-term drag (below short-term averages and negative MACD), while valuation is supportive with a low P/E.
Positive Factors
Sustainable Profitability
Margins have remained around 15% while operating profitability stays near 19–20%, indicating the lending platform is producing healthy earnings across the reported years. This profitability provides internal capacity to absorb credit costs, support growth, and reinforce the business’s economics over the next several quarters.
Negative Factors
Rising Leverage
Debt-to-equity increased to about 3.15 from 2.87, leaving the company with an aggressive capital structure. Higher leverage makes earnings and liquidity more sensitive to credit conditions and funding costs, while limiting financial flexibility if portfolio performance or funding access weakens.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustainable Profitability
Margins have remained around 15% while operating profitability stays near 19–20%, indicating the lending platform is producing healthy earnings across the reported years. This profitability provides internal capacity to absorb credit costs, support growth, and reinforce the business’s economics over the next several quarters.
Read all positive factors
Northern Arc Capital Ltd. (NORTHARC) vs. iShares MSCI India ETF (INDA)
Market Cap
₹39.99B
Dividend YieldN/A
Average Volume (3M)147.77K
Price to Earnings (P/E)9.1
Beta (1Y)1.13
Revenue Growth20.51%
EPS Growth38.53%
CountryIN
Employees3,163
SectorGeneral
Sector StrengthN/A
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)27.20
Shares Outstanding161,810,880
10 Day Avg. Volume27,174
30 Day Avg. Volume147,770
Financial Highlights & Ratios
PEG Ratio0.34
Price to Book (P/B)0.86
Price to Sales (P/S)1.24
P/FCF Ratio1.76
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)32.51
Revenue Forecast (FY)₹23.24B
Northern Arc Capital Ltd. Business Overview & Revenue Model
Company Description
Northern Arc Capital Ltd. functions as a prominent non-banking financial company (NBFC) in India, headquartered in Chennai. Established in 1989 and known as IFMR Capital Finance Limited until its rebranding in February 2018, the company operates t...
How the Company Makes Money
Northern Arc Capital primarily makes money through interest income earned on loans and financing it provides across its credit portfolio, along with fees linked to its lending and structured credit activities. Key revenue drivers typically include...
Northern Arc Capital Ltd. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
46
Neutral
Cash Flow
70
Positive
| Breakdown | TTM | Mar 2025 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 28.69B | 27.00B | 20.45B | 16.26B | 10.41B | 7.23B |
| Gross Profit | 16.39B | 14.54B | 7.11B | 4.99B | 2.42B | 1.87B |
| EBITDA | 8.27B | 5.54B | 4.07B | 4.38B | 3.34B | 2.59B |
| Net Income | 4.39B | 4.06B | 3.05B | 3.08B | 2.30B | 1.73B |
Balance Sheet | ||||||
| Total Assets | 171.79B | 167.45B | 136.38B | 117.08B | 93.72B | 79.74B |
| Cash, Cash Equivalents and Short-Term Investments | 5.95B | 4.97B | 18.82B | 14.04B | 4.23B | 16.05B |
| Total Debt | 124.40B | 122.58B | 98.60B | 90.48B | 70.35B | 59.83B |
| Total Liabilities | 131.17B | 128.44B | 101.99B | 93.87B | 73.04B | 61.42B |
| Stockholders Equity | 40.56B | 38.96B | 34.34B | 23.14B | 19.55B | 17.39B |
Cash Flow | ||||||
| Free Cash Flow | -1.46B | 19.13B | 18.94B | -21.48B | -12.96B | -13.38B |
| Operating Cash Flow | -1.38B | 19.28B | 19.12B | -21.34B | -12.96B | -13.26B |
| Investing Cash Flow | -3.35B | -43.73B | -32.58B | 360.45M | -1.19B | -3.86B |
| Financing Cash Flow | 4.60B | 22.92B | 15.86B | 20.45B | 9.28B | 20.28B |
Northern Arc Capital Ltd. Technical Analysis
Negative
285.30
Price Trends
290.88
Negative
293.62
Negative
274.50
Negative
Market Momentum
-12.43
Positive
26.46
Positive
10.35
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NORTHARC, the sentiment is Negative. The current price of 285.3 is above the 20-day moving average (MA) of 278.27, below the 50-day MA of 290.88, and above the 200-day MA of 274.50, indicating a bearish trend. The MACD of -12.43 indicates Positive momentum. The RSI at 26.46 is Positive, neither overbought nor oversold. The STOCH value of 10.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:NORTHARC.
Northern Arc Capital Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | ₹24.69B | 6.00 | ― | ― | 20.59% | 225.35% | |
63 Neutral | ₹162.22B | 10.20 | ― | 0.76% | 17.44% | 1085.33% | |
61 Neutral | ₹39.99B | 9.09 | ― | ― | 20.51% | 38.53% | |
58 Neutral | ₹45.70B | 11.58 | ― | 0.79% | 23.25% | 21.56% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
46 Neutral | ₹24.29B | 24.05 | ― | ― | 5.19% | ― | |
40 Underperform | ₹16.32B | -4.33 | ― | ― | -46.58% | 78.01% |
* General Sector Average
IN:NORTHARC
Northern Arc Capital Ltd.
247.15
-22.60
-8.38%
IN:CREDITACC
CreditAccess Grameen Ltd.
1,010.40
-391.25
-27.91%
IN:MASFIN
MAS Financial Services Ltd.
251.85
-50.03
-16.57%
IN:MUTHOOTMF
Muthoot Microfin Ltd
142.45
-27.35
-16.11%
IN:SATIN
Satin Creditcare Network Ltd
224.50
67.30
42.81%
IN:SPANDANA
Spandana Sphoorty Financial Ltd.
184.15
-66.80
-26.62%
Northern Arc Capital Ltd. Corporate Events
Northern Arc Capital Shareholders Clear All Resolutions at Fully Virtual AGM
Aug 18, 2026
Northern Arc Capital Limited has reported to the National Stock Exchange and BSE that its 18th Annual General Meeting was held on August 18, 2026 via video conferencing and other audio-visual means, in line with Ministry of Corporate Affairs guida...
Northern Arc Capital Discloses CRISIL-Monitored Use of IPO Proceeds
Jul 29, 2026
Northern Arc Capital Ltd. has filed a Monitoring Agency Report for the quarter ended June 30, 2026, detailing the utilisation of proceeds from its recent public equity share issue. The report, prepared by CRISIL Ratings Limited, follows SEBI’...
Northern Arc Capital Posts Q1 Earnings Call Recording for Investor Access
Jul 27, 2026
Northern Arc Capital Limited has notified the BSE and NSE that the audio recording of its earnings conference call held on July 27, 2026, covering unaudited financial results for the first quarter ended June 30, 2026, is now available on the compa...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.