Fundamental Analysis of Mufin Green Finance : An EV financing NBFC has raised ₹140 crore in a Series B round of equity funding with a mission to create equal financial opportunities for the underserved segment in the country using clean technologies. The company we are talking about is Mufin Green Finance. In this article, we will conduct a fundamental analysis of Mufin Green Finance and learn more about the company and its financials.

Mufin Green Finance Ltd

Mufin Green Finance Logo

Company Overview

Established in 2016, Mufin Green Finance emerged as a prominent NBFC specializing in electric vehicle (EV) loans aimed at generating income. Recognized by the Reserve Bank of India, it operates as a non-deposit-taking NBFC, focusing on investments and loan provisions.

As a subsidiary of Hindon Mercantile Limited, a technology-oriented entity facilitating income-generating loans, Mufin Green Finance pioneers climate financing in India. Its reach spans 14 states and over 150 cities, serving as a key financier in the EV sector. With over 24,191 borrowers and more than 350 crore worth of financed EV vehicles, the company has deployed assets worth 49 crore on lease, significantly contributing to carbon emission reduction, totaling 173,788 tons.

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SBI and IREDA are lending partners for the company, and Incofin India Progress Fund is their investor. The company had 1.99% of net NPAs as a percentage of net advances as of March 31, 2023. The company has only one line of business, i.e., financing and investment activities and has no activity outside India.

Industry Overview

India’s GDP is projected to exhibit robust growth exceeding 6% for the fiscal year 2024, indicating a promising economic trajectory. Non-banking financial companies (NBFCs) have emerged as vital players within India’s financial landscape, consistently outpacing scheduled commercial banks (SCBs) in credit expansion. The escalating significance of NBFCs is underscored by the steady increase in their credit relative to GDP and their reliance on credit extended by SCBs. 

With an increasingly large workforce and a growing middle- and lower-income demographic, the need for financial services is set to rise sharply. Additionally, India is projected to become the world’s fifth-largest automotive market by 2025, with estimates indicating sales of 4 million electric vehicles annually by then and 10 million by 2030.

The Indian electric vehicle market is forecasted to reach USD 113.99 billion by 2029, growing at an impressive CAGR of 66.52%, driven by the global adoption of electric micro-mobility vehicles. These trends collectively outline a dynamic landscape characterized by significant growth opportunities within India’s financial and electric vehicle sectors.

Mufin Green Finance – Financials

Revenue & Net Profit

Mufin Green Finance reported Rs 35 crore in revenue in FY23, a 133% increase in revenue compared to Rs. 15 crore in FY22. The net profit earned in FY23 decreased by 27% compared to FY22, from Rs 11 crore to Rs 8 crore.

Taking a five-year time horizon, the revenues and net profits have grown at a CAGR of 84.81% and 27.79%, respectively. A closer look at the data reveals that revenue and profits fell in FY21, mainly due to a reduction in stock market valuations on account of the COVID-19 pandemic, which has impacted the valuation of the company’s investments and profitability.

The profits for FY23 have decreased due to an increase in business operations, which has increased operational costs. The table below exhibits the revenue and profits of Mufin Green over the last 5 years.

Fiscal YearRevenue from operations (In Crores)Net Profit (In Crores)
4-year CAGR84.81%27.79%

Profit Margins

The financials reported an operating margin of 46.7% and a net profit margin of 23.08% in FY23, compared to 84.05% and 71.32%, respectively, in FY22. The operating margins have been decreasing but positive in the past years, except for FY20, which was due to COVID-19. Net profit margin has also been in a similar trend on account of high operating expenses due to the expansion of business in the EV segment.

The five-year average operating margins and net profit margin are influenced by high losses in FY20. The table below exhibits the profit margins of Mufin Green over the last 5 years.

Fiscal YearOperating Profit Margin (%)Net Profit Margin (%)
5-year average-12.11-19.72

Return Ratios

As for its return ratio, Muffin Green’s business doesn’t generate a healthy return on capital employed and equity. Its RoCE and RoE stood at 10.23% and 5.3%, respectively, in FY23.

The RoCE and RoE ratios have decreased due to increased operational costs and a reduction in profit. On a longer perspective, ROCE has improved and is above its 5-year average of 8.48%. The table below shows the ROE and RoCE of Mufin Green for the last 5 years:

Fiscal YearReturn on Equity (%)Return on Capital Employed (%)
5-year average6.68.5

Leverage Ratios

As Mufin Green Finance is an NBFC, the analysis of leverage ratios will not be informative.

Shareholding Pattern

Mufin Green Finance Shareholders
Source: Annual Report

Mufin Green Finance – Key Metrics

CMP₹ 234.95Market Cap(Cr)₹ 3,678.24
EPS0.82Stock P/E326
RoE (%)7.7%RoCE (%)6.37%
Promoter Holdings (%)58.18%FII Holdings (%)14.12%
Debt to Equity3.24P/B26.7
Operating Profit Margin (%)46.7Net Profit Margin (%)23.08

Future Outlook

  • Target of disbursing income-generating EV loans worth INR 5,000 crore in the next five years.
  • The company will focus on scaling up by improving efficiencies.
  • The key focus would be on protecting the portfolio and containing the cost.
  • Create a PAN India presence & enable financing of all EV products under one roof.


As we conclude the article on the Fundamental Analysis of Mufin Green Finance Limited, we have looked into its business, industry, financials, and future outlook. The company looks optimistic and has higher growth opportunities. Further analysis is required to understand the risk & return characteristics of the company and its suitability before investing. Do write your thoughts in the comment section below.

Written by Ashish Agarwal

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