BBB- (Stable) credit rating assigned by ICRA
SAHLIBHFI · price
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Awaiting price reaction for this filing.
ICRA has assigned a BBB- (Stable) credit rating to Shalibhadra Finance's proposed non-convertible debentures (NCDs) of Rs. 20 crore. The company is a small NBFC focused on two-wheeler (2W) financing in rural and semi-urban areas, mainly in Gujarat. Its existing long-term fund-based facility of Rs. 40 crore has been reaffirmed at the same BBB- (Stable) level, taking the total rated amount to Rs. 60 crore. Shalibhadra has comfortable capitalisation with a capital adequacy ratio of 79% and gearing of just 0.3x, along with healthy profitability (RoA of 8.9% in FY2025). However, key concerns include its modest loan book of Rs. 212 crore, moderate asset quality (gross NPAs of 3.0%), heavy concentration in Gujarat (54% of portfolio), and a monoline focus on 2W lending. The company plans to diversify into housing loans and micro-LAP segments going forward.
Neutral to mildly positive — the rating reaffirmation signals stability in the company's credit profile, and the new NCD rating opens a fresh borrowing avenue of Rs. 20 crore. However, the BBB- rating reflects below-investment-grade territory, meaning borrowing costs may be higher and shareholders should watch for asset quality trends and diversification progress.