Abans Holdings is a non-operating holding company for the Abans groups' financial services companies. It primarily has three revenue sources:
- Finance business (2.7 per cent of revenue) - lending services to private traders and SMEs.
- Capital business (92.3 per cent of revenue) - internal treasury operation, i.e., invest the excess capital funds of Abans Group in various assets.
- Agency business (5 per cent of revenue)- It provides institutional trading, wealth management and asset management services to corporates, HNIs and retailers.
- Its integrated financial services platform allows clients to invest in a variety of asset classes. It also has tie-ups with various exchanges, such as BSE, NSE, MESI, etc.
Weaknesses:Political contributions: The subsidiaries have made significant contributions to electoral bonds in the past. In FY21 and FY19, political contributions as a percentage of profits were 41 and 43 per cent, respectively.
Exposure to market fluctuations: The company derives most of its revenue from its capital business, which is highly exposed to fluctuations in the capital and commodity markets.
Unpredictable: It is extremely difficult to predict the performance of this entity as it is tied to the performance of the various subsidiaries.
: In FY22, 11 per cent of its revenue came from transactions with companies within the Abans Group.
- High intercompany transactions
Disclaimer: This is not a stock recommendation. Do your due diligence before investing.
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