Dar Credit and Capital IPO Review

Dar Credit and Capital specializes in offering credit solutions to low-income individuals, particularly those in class-four (Group D) employment roles such as cleaners, sweepers, and peons working in municipalities. The Company also extends credit to small-scale shopkeepers and vendors, with a strong focus on empowering women entrepreneurs.

The company is spearheaded by Mr. Ramesh Kumar Vijay, who serves as the Promoter, Chairman, and Whole Time Director. He holds a Bachelor’s Degree in Commerce from Government College, Tonk, University of Rajasthan, and is a Chartered Accountant and Fellow Member of the Institute of Chartered Accountants of India. Additionally, he is a qualified Company Secretary from the Institute of Company Secretaries of India. As one of the Company’s founders, Mr. Ramesh Kumar Vijay brings 39 years of expertise in personal loans, unsecured MSME loans, and secured MSME loans. He is also a Patron Member of the B.B.D. Bag Professional Study Circle Association.

The Revenues from operations for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 3,103.24 Lakh, ₹ 3,301.38 Lakh, ₹ 2,556.97 Lakh and ₹ 2,442.08 Lakh respectively. The EBITDA for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 2,158.06 Lakh, ₹ 2,203.86 Lakh, ₹ 1,673.75 Lakh, and ₹ 1,603.09 Lakh, respectively. The Profit after Tax for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 491.94 Lakh, ₹ 396.83 Lakh, ₹ 293.00 Lakh, and ₹ 250.18 Lakh respectively. This indicates a steady growth in financial performance.

The Company Key Performance Indicates the pre-issue EPS of ₹ 3.97 and post-issue EPS of ₹ 2.78 for FY24. The pre-issue P/E ratio is 15.11x, while the post-issue P/E ratio is 21.59x against the Industry P/E ratio is 6.00x. The company's ROCE for FY24 is 9.22%, ROE for FY24 is 6.17% and RoNW is 5.64%. The Annualised EPS based on the latest financial data is ₹ 6.56 and PE ratio is 9.14x. These metrics suggest that the IPO is fully priced.

The Grey Market Premium (GMP) of Dar Credit and Capital showing listing gains of 8.33 %.Given the company's financial performance and the valuation of the IPO, we recommend Investors to Avoid to the Dar Credit and Capital Limited IPO for Listing gain.

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About the Author
CA Abhay Kumar (Also known as  CA Abhay Varn) is a qualified Chartered Accountant by profession and cleared CA at age 21. He is a SEBI Registered Research Analyst with Registration Number - INH300008465. He Possesses 8+ years of experience in the Stock Market Field and has also worked in Big CA firms.