ARC Finance Ltd (ARCFIN) Fair Value & Analysis
Financial Services · IN · Market cap ₹471M
Fair value as of: Aug 13, 2026
From 11 valuation models · updated 5 days ago
Fair value updated Aug 13, 2026, revised from ₹0.1700 to ₹0.1100 (−35.3%) since Aug 11, 2026.
Below-average quality, and screening another 78% overvalued on our models.
What matters now
- The price sits above even our optimistic bull case (₹0.1800). The favourable scenario is already priced in.
- Weak quality (38/100) and above fair value at the same time, the margin of safety is missing on both counts.
- A fairly wide model range (₹0.0800 to ₹0.1800) leaves room in how you read the outcome.
- For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.
How to read this chart
60‑month range ₹0.2727 – ₹4.84 · fair‑value band ₹0.0800 – ₹0.1800 · the ₹0.5000 price screens above the ₹0.1100 fair value. Dashed = 300-day average. As of Aug 13, 2026.
Analysis
ARC Finance Ltd (ARCFIN) currently trades at ₹0.5000, while our model-based Fair Value estimate is ₹0.1100, implying the stock looks roughly 78.0% overvalued today. The Quality Score stands at 38/100 (below-average quality), in the Financial Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).
Over the trailing twelve months, ARC Finance Ltd generated revenue of ₹277M at a net margin of 2.6%. Revenue grew 45.8% year over year. It earns a return on equity of 0.7%. Net debt stands at ₹136M. Fundamentals as of Aug 13, 2026
Our scenario range runs from ₹0.0800 (bear case) to ₹0.1800 (bull case); at ₹0.5000, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 50% below its 52-week high and 14% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at -45% fair-value upside, at -78%, ARCFIN screens richer than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.
All 11 models by family
Widest divergence: Asset-Based (₹0.7600) versus DCF Models (₹0.0600). Highest evidence: Growth DCF (80).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 41 · Market factors (momentum, volatility) 24
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
About the company
ARC Finance Ltd, a non-banking finance company, engages in the lending business in India. The company offers loans and advances; and various financial services. It also invests and trades in securities. The company was formerly known as ARC Modellors & Services Limited and changed its name to ARC Finance Ltd in February 1993.
Full company description
ARC Finance Ltd, a non-banking finance company, engages in the lending business in India. The company offers loans and advances; and various financial services. It also invests and trades in securities. The company was formerly known as ARC Modellors & Services Limited and changed its name to ARC Finance Ltd in February 1993. ARC Finance Ltd was incorporated in 1982 and is based in Kolkata, India.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2022 – FY2026 · reported fiscal years
ARC Finance Ltd reported revenue of ₹281M in FY2026 versus −₹54.0M in FY2022. Reported net income was ₹7.2M in FY2026, compounding +26.4%/yr from FY2022.
ARCFIN screens 78% overvalued. Compare with Visa Inc →
Peer Group
Credit Services · 334 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Credit Services median · lower = cheaper
Snowflake
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
VALUE 0: the price sits above our fair-value range.
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more Credit Services stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Visa Inc V | $359.42 | $198.27 | -45% |
| Mastercard Incorporated MA | $561.44 | $221.87 | -60% |
| Bajaj Finance Limited BAJFINANCE | ₹1,093 | ₹397.70 | -64% |
| Shriram Finance Limited SHRIRAMFIN | ₹1,117 | ₹553.83 | -50% |
| Cholamandalam Investment and Finance Company CHOLAFIN | ₹1,918 | ₹796.52 | -58% |
| Tata Capital Limited TATACAP | ₹367.05 | ₹149.40 | -59% |
| Power Finance Corporation PFC | ₹376.50 | ₹615.85 | +64% |
| Muthoot Finance Limited MUTHOOTFIN | ₹2,876 | ₹3,429 | +19% |
| Indian Railway Finance Corporation IRFC | ₹88.35 | ₹69.72 | -21% |
| REC Limited RECLTD | ₹346.00 | ₹692.00 | +100% |
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Frequently asked questions
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How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.
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