Sammaan Capital Targets ₹1 Lakh Cr AUM by FY27 Amid Strategic Rebranding
About the Company
Sammaan Capital Ltd is a NHB regulated lending business which offers home loans and loans against property. The company’s services also extend to corporate mortgage loans, including lease rental discounting and residential construction finance. Recently, the company underwent a significant transformation, rebranding itself as ‘Sammaan Capital Limited’. This change was accompanied by the receipt of a Certificate of Registration as an NBFC-ICC from the Reserve Bank of India (RBI), following a comprehensive six-month review process. This development marks a new chapter in the company’s operations within the financial sector.
Q1FY25 Highlights
The company reports a net worth of ₹20,269 Cr and a high capital adequacy ratio of 34.21%. The company maintains low leverage with a gearing ratio of 1.9x, indicating moderate borrowings of ₹37,628 Cr. Asset quality appears solid, with gross and net NPAs at their lowest levels in four years, standing at 2.68% and 1.52% respectively. The company’s total loan assets are ₹66,566 Cr, with an own book of ₹53,979 Cr. Profitability remains steady, with a profit after tax of ₹327 Cr in Q1FY25. The 1.8% return on assets indicates steady profitability.
| Financial Statement (in Cr) | Q1 FY 25 | Q1 FY 24 | YoY % | Q4 FY 24 | QoQ% |
| Interest income | 1688.99 | 1818.03 | -7.10% | 1572.55 | 7.40% |
| Total income | 2236.27 | 1915.62 | 16.74% | 2255.13 | -0.84% |
| Finance costs | 1309.12 | 1353.9 | -3.31% | 1291.48 | 1.37% |
| Net interest income | 379.87 | 464.13 | -18.15% | 281.07 | 35.15% |
| OPEX | 230.48 | 226.07 | 1.95% | 241.92 | -4.73% |
| PPOP | 696.67 | 335.65 | 107.56% | 721.73 | -3.47% |
| Profit/(loss) before tax | 437.14 | 396.23 | 10.32% | 431.89 | 1.22% |
| Profit/(loss) after tax for the period/year | 326.76 | 294.39 | 11.00% | 319.43 | 2.29% |
| EPS (Basic) (₹) | 5.43 | 6.1 | 5.7 | ||
| EPS (Diluted) (₹) | 5.41 | 6.08 | 5.67 |
| Financial Highlights (in ₹ Cr) | Q1FY25 | Q4FY24 | QoQ (%) | Q1FY24 | YoY (%) |
| Net Worth | 20269 | 19792 | 2.41% | 17576 | 15.32% |
| Total Loan Assets | 66566 | 65335 | 1.88% | 65787 | 1.18% |
| Own Book | 53979 | 53090 | 1.67% | 53211 | 1.44% |
| Return on Assets | 1.80% | 1.60% | 12.50% | 1.70% | 5.88% |
| Gross NPA% | 2.68% | 2.69% | -0.37% | 2.87% | -6.62% |
| Net NPA% | 1.52% | 1.52% | 0.00% | 1.69% | -10.06% |
Future Outlook FY2025 to FY2027:
As of Q1FY25, the company reports a legacy AUM of ₹37,386 Cr, with a target to reduce this to single-digit percentage of AUM by FY27. The new AUM stands at ₹29,180 Cr, with a goal to reach ₹1,00,000 Cr+ by FY27. Annual incremental disbursals are ₹12,450 Cr (annualized), aiming for ₹35,000 Cr by FY27. The company shows an incremental retail RoA of 2.9% and incremental RoE of 15.3%, targeting 3.20% and 18% respectively by FY27. The company has called for final monies of ₹100 per right share, potentially garnering ₹2,462 Cr by August 22nd to strengthen capital. They have capital buffers to manage the legacy book and support recoveries. Notably, 66% of the new AUM (loans sourced since FY22) has already been sold down. The average monthly retail disbursal during the quarter was approximately ₹1,050 Cr.
Retail Origination Engine
The company has expanded its CLM/Sell-down subsidizing from 29% to 37% of AUM since FY22, disbursing ₹2,058 Cr through co-lending and offer down in Q1FY25. The loan profile reveals a focus on home loans (₹1,190 Cr) and LAP (₹867 Cr), with high median CIBIL scores indicating quality borrowers. The company is expanding its co-lending partnerships, with IDBI Bank recently added and Bank of India set to join, bringing the total to 10 partner banks by H1FY25. Strategic appointments, such as Mr. Mrutunjay Mahapatra to the IT Strategy Committee, underscore the company’s commitment to technological advancement.
Loan Disbursement
The Loan Disbursement Profile shows a total of ₹2,058 Cr distributed across 6,360 cases, with a significant focus on home loans. Home loans account for ₹1,190 Cr spread over 4,646 cases, while LAP (Loan Against Property) contributes ₹867 Cr across 1,714 cases. The average ticket size varies considerably between loan types, with home loans averaging ₹25.62 lacs and LAP at a higher ₹50.58 lacs. Notably, the median CIBIL scores are consistently high across all loan categories, ranging from 760 for LAP to 762 for both the overall portfolio and home loans specifically.
Asset Quality
The latest quarter (Q1FY25) shows gross NPA at 2.68% and net NPA at 1.52%, both at their lowest levels in four years. The company maintains a robust provision buffer, with total imputed provisions of ₹6,287 Cr, representing 11.6% of the loan book and 3.5x the gross NPAs. This includes ₹4,000 Cr of expected recoveries from a pool of ₹10,000 Cr. The enhanced capital buffers, bolstered by a recent rights issue, are strategically positioned to support the tactical run-down of the legacy book and facilitate recoveries. The company aims to reduce its legacy Assets Under Management (AUM) to a single-digit percentage of total AUM by FY27, indicating a focused approach on improving overall asset quality and operational efficiency.
Financials Analysis
Interest income decreased by 7.10% year-over-year from 1818.03 Cr in Q1 FY24 to 1688.99 Cr in Q1 FY25. Finance costs also saw a decrease of 3.31% year-over-year, dropping from 1353.9 Cr to 1309.12 Cr. Net interest income experienced a significant decline of 18.15% year-over-year, falling from 464.13 Cr to 379.87 Cr. In contrast, OPEX & PPOP showed a substantial increase of 1.95% & 107.56% year-over-year, PPOP rising from 335.65 Cr in Q1 FY24 to 696.67 Cr in Q1 FY25 and OPEX rising from 226.07 to 230.48 in Q1FY25.
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