ValuePickr Forum

QGO Finance Ltd

Why ?
Not much publicly available information about this company but what attracted me is their underwriting which dodged the covid- bullet.

from FY 21 - Q4 Financials

Company has been showing high & steady growth

QGO finance (formerly known as parnami credits ltd) was formed in 2018 after new promoter Rachana Singi acquired the company.

New promoter background - She is C.A and She used to run Rs 25 Cr textile company (Anika apparel ltd) before venturing into lending with QGO. (Anika apparels pvt ltd is a ready-made apparel manufacturing company basically dealing with exports of high fashion womens wear catering to the Europe market.)

Open offer for public shareholders were at Rs 11.59 per share .

Prior to open offer she acquired 19% of the company via open market , for 12 months.

And rest she acquired from the promoters at Rs 9.3 per share

src -

Overall Looks like She was able to buy 91% of the holding by paying some 3-3.5 Cr , then she raised the debt at 12% via NCDs ( today total of 29 Cr worth of NCDs hv been issued) & was able to build loan book of 42-50 Cr with Nil NPAs mostly focused on real estate financing.
Important thing to notice is they came into the market when there was serious funding crunch for the developers for IL&FS crisis ( DHFL was going bust, India bulls , PEL were de-leveraging etc) , which i supposed opened the gates for them to raise fresh capital lend at their own will without much competition.

Company has been growing steadily - (NII have grown by 3x)


Financials -

What future holds ?
Company is not trading cheap at Mcap 20 Cr if one looks from PE = 30 , PB = 2x book but if we factor in the
same growth rate which 300% in last 3 years, So if they able to double revenue from 5.5 Cr to 10 cr in two years then at Rs 20 Cr mcap they might be trading cheap.

Near term growth visibility is there -
If you go through recent updates - Company has just approved to raised Rs 10 Cr via NCD in Aug ( Mcap 20 Cr) and again they are further planning to raise more growth capital.

If real estate sector going to see the tail wind then this company will sure find it easy to grow near term.

Negatives / Risks -
"If ROE remains low despite growth "
Today company ROE is 8.18 % , their COC is very high 12% and due to low revenue base just 5 cr and 1 Cr fixed cost not much is following into bottom line.
Company has to work on improving ROE, It may improve if COC comes down and revenue become >> fixed cost in future.
“Promoter selling” -
Promoter has bought down her stake from 91% to 65% in last 3 years. One reason could be as she take out just Rs 7.7 Lac as salary ( net profit = Rs 1 cr) most of the income made via selling shares at attractive gain from acquisition price.

Some Email clarification i got from management -

AGM link for more insights -

Looking forward to more information sharing on this and learning new things from community members.

Disc - Invested in the company.


Thanks for sharing the email clarifications.

The first and third qts are answered very fishy.

First qts, she is saying they have great track record and tried their best to lower cost of fund still could not do but she avoided answering on when they have such claimed track record then why no credit rating so far? It cost a small fee to get credit rated then why no rating so far? What do they want to hide feom credit appraiser?

Qts three - when someone says “personal reasons” they hide more than they reveal. Also if one is so confident on their track record they would not sell off -15% stake which runs into two digit lakhs.


I like this company and have a very small holding. The promoter has large holding and I am not too bothered about her past selling. Recently the share price has run up for reasons I am not sure about, although I imagine that the stock is undervalued. Probably I will add more if good performance continues, once the price stabilizes and/or when it is close to 50 DMA/200 DMA.

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Company is raising Rs 4 Cr more at 12 % NCD payout over 10 yrs.

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Does anyone have a recent AGM’s (2020-2021) video, audio, or script?

I think FY21 AGM has not happened yet …

The AGM was on Wednesday, July 14, 2021 at 11.00 a.m.
through Video Conferencing

And they continue to raise growth capital - ( looks like growth capital given past NPAs are nill)

Approved issuance of Unsecured, unlisted, redeemable, Non-convertible Debentures
(NCDs) under Private Placement basis upto Rs. 30 Crore within the borrowing limits
of the Company as approved by the shareholders


11 Crs of these 30 Crs NCDs have been allocated on 8th.


@AmitContrarian do u know at what rate they lend to their customers?
It is okay that they do secure lending but is there a room for profit?

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I see the NII is 5-6 % of their AUM, that means they must be lending at 17-18% .

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Total they have raised Rs 20 Cr from 5 - Aug till today , So not even half-yearly and they have grown AUM already by 50% of 42 Cr at the end of FY21.

My guess is they will going to have AUM of 62-65 Cr by half yearly , might do total of 6-7 Cr of revenue & may be 10-12 Cr revenue company by Year End with AUM growing to 100Crs.


You are on right track , if information shared by u is right then ur sitting on multibagger, there is a huge room for nbfc like qgo ,and specifically in navi mumbai region.
After supratech,il&fs ,unitech scam none of the bank is ready to lend to developers.
Before 10yr it is very much easy for real eatate developer to raise money from bank. Today its very tedious.
So my guess is qgo will definitely attracts large pool of customers. With out doing much efforts.

Disc.:- I own nbfc company. Purchased QGO finance today less than 1% of pf. Will buy more if liquidity constraints not there.


Since 2018 even NBFCs aren’t lending to developers, Even folks like PEL are deleveraging their whole sale book. This created a nice vacuum for QGO to fill in.
Given their ticket size , i guess QGO is financing mostly old apartment re - development projects in Mumbai or other very small ticket buildings which anyways folks like India bulls and DHFL used to cater and other NBFCs ( many of these have defaulted ).

If they are catering to re- development projects then these aren’t very risky at all kind of explains their NIL NPAs.
These are my guess, if one has already talked to the management please correct me if i am wrong.

I tried seeking clarification about it over email they didn’t tell me exact details abt business model and said they will put out presentation post result soon to address these questions.

Lets see…

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decreasing promoter holding and low ROE are factors to be considered.

Actually since the takeover ROE is increasing from very low base.

Its a startup, see it that way. Meaningful ROE will come after they reach certain scale (> 100 Cr AUM).
Very important to see how they improve ROE overtime.

Already talked about promoter selling.

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I emailed them. Got no response! Just curious, which Email are you using?

I got the response too.

Anyways what you asked and what response you got ?

I emailed them twice for the last AGM recording or written script. No response. :sweat_smile:

Promoter sold another 1.35%