Mas Financial Services Ltd. Sep '28 Corporate Bonds - INE348L07423

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AAA, AA+, AA, AA-, A+, A, A-

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BBB+, BBB, BBB-, BB+, BB

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BB-, B+, B, B-, C, D

The rating agency for this Bond is CARE.

About

MAS Financial Services Limited (MFSL) is an Ahmedabad-headquartered Non-Banking Financial Company (NBFC) incorporated in 1995 by Mr. Kamlesh Gandhi and the late Mr. Mukesh Gandhi. The company specializes in retail and wholesale lending across 13 states, operating through 208 standalone branches and a network of 224 NBFC partnerships as of March 31, 2026. Its consolidated operations include a 63.74% owned subsidiary, MAS Rural Housing and Mortgage Finance Limited (MRHMFL), which provides housing loans to low-income groups in rural and semi-urban areas through 103 branches. MFSL’s diversified loan book includes Micro Enterprise (ME) loans, Small and Medium Enterprise (SME) loans, two-wheeler loans, commercial vehicle (CV) loans, salaried personal loans, and housing finance, reaching a consolidated Assets Under Management (AUM) of ₹15,303.86 crore as of March 31, 2026.;

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Pros

Cons

Experienced Promoters and Senior Management: Promoters have over two decades of operational experience in the lending business, led by Chairman & Managing Director Kamlesh C. Gandhi (31 years of domain experience), alongside a stable senior executive team associated since inception.

Comfortable Capitalisation and Steady Internal Accruals: MFSL maintains robust capitalization levels with a standalone Capital Adequacy Ratio (CAR) of 22.84% (Tier-I CAR of 21.50%) as of March 31, 2026, supported by strong internal capital generation with a three-year average Return on Net Worth (RONW) of 14.25%.

Diversified Borrowing Profile and Off-Book Capital Optimization: The company maintains active relationships with over 45 banks, NBFCs, and financial institutions across term loans, capital markets, and working capital lines, while using direct assignment (DA) transactions (~21% off-book AUM) to support portfolio scale on a relatively lower net worth base.

Multi-Product Loan Portfolio: MFSL holds a well-distributed product mix spanning micro-enterprise loans (37%), SME loans (34%), salaried personal loans (8%), two-wheeler loans (7%), commercial vehicle loans (7%), and housing finance (6%).

Stable Earnings Profile with Comfortable Return Indicators: Consolidated Profit After Tax (PAT) expanded 20% year-on-year to ₹375.82 crore in FY26, supporting a healthy Return on Managed Assets (ROMA) of 2.38% and a Net Interest Margin (NIM) of 5.73%.

Mas Financial Services Ltd. Sep '28

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