Share Market Update – Akme Fintrade Share Price Target 2025

Akme Fintrade Share Price Target 2025:- Akme Fintrade (India) Ltd, established in 1996 and headquartered in Udaipur, Rajasthan, is a Non-Banking Financial Company (NBFC) dedicated to providing financial solutions to underserved communities in rural and semi-urban India. The company offers a diverse range of loan products, including two-wheeler and four-wheeler loans, business loans, and loans against property, aiming to empower individuals and small businesses with accessible credit options. Operating across multiple states such as Rajasthan, Maharashtra, Madhya Pradesh, and Gujarat, Akme Fintrade has developed a strong presence with numerous branches and service points. Akme Fintrade Share Price on NSE as of 5 May 2025 is 7.20 INR.

Akme Fintrade Ltd: Current Market Overview

• Open: 7.31
• High: 7.46
• Low: 7.13
• Mkt cap: 308.11Cr
• P/E ratio: N/A
• Div yield: N/A
• 52-wk high: 13.40
• 52-wk low: 6.42

Akme Fintrade Share Price Chart

Akme Fintrade Share Price Target 2025 (Prediction)

Akme Fintrade Shareholding Pattern

• Promoters: 41.24%
• FII: 0.77%
• DII: 2.99%
• Public: 55%

Key Factors Affecting Akme Fintrade Share Price Growth

Here are five key factors influencing the growth prospects of Akme Fintrade (India) Ltd:

1. Strong Financial Performance

   In Q3 FY25, Akme Fintrade reported a revenue of ₹184.4 million, marking a 103% increase from the same quarter in the previous year. Net income also rose by 60% to ₹89.3 million, indicating robust financial health and operational efficiency.

2. Efficient Business Model

   The company operates under a “hub and spoke” model, with its registered office in Udaipur, Rajasthan, overseeing multiple branches across various states. This structure enhances operational efficiency and reduces costs, contributing to improved profitability.

3. Diversified Loan Portfolio

   Akme Fintrade offers a range of financial products, including vehicle and business loans, catering to salaried and self-employed individuals in rural and semi-urban areas. This diversification helps mitigate risks associated with market fluctuations in specific sectors.

4. Improved Profit Margins

   The company’s net profit margin increased to 25.4% in FY24 from 20.9% in FY23, reflecting better cost management and higher income generation. This improvement indicates a positive trend in the company’s profitability.

5. Low Debt Levels

   With a debt-to-equity ratio of 0.3 in FY24, down from 0.5 in FY23, Akme Fintrade maintains a conservative approach to borrowing. This low leverage enhances financial stability and provides flexibility for future investments and growth opportunities.

Risks and Challenges for Akme Fintrade Share Price

Here are five key risks and challenges that could impact Akme Fintrade (India) Ltd:

1. Elevated Non-Performing Assets (NPAs)

   Akme Fintrade has reported higher levels of NPAs compared to some of its industry peers. This situation poses a risk to the company’s financial health, as elevated NPAs can lead to reduced profitability and may hinder its ability to secure additional funding.

2. Geographical Concentration Risk

   The company’s operations are primarily concentrated in the state of Rajasthan. This limited geographical presence exposes Akme Fintrade to regional economic fluctuations and regulatory changes, which could adversely affect its business performance.

3. Regulatory Compliance Challenges

   As a Non-Banking Financial Company (NBFC), Akme Fintrade is subject to stringent regulatory requirements. Any failure to obtain, maintain, or renew necessary licenses and approvals in a timely manner could negatively impact its operations and financial stability.

4. Dependence on Business Loans

   A significant portion of Akme Fintrade’s portfolio comprises business loans. Adverse developments in the sectors where its clients operate could lead to increased defaults, impacting the company’s revenue and profitability.

5. Moderate Stock Performance Post-IPO

   Despite a strong initial subscription, Akme Fintrade’s stock has experienced a decline since its listing, trading at ₹7.22 as of May 2, 2025, down from its IPO price of ₹120. This performance may reflect investor concerns regarding the company’s valuation and future growth prospects.

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