Northern Arc Capital Ltd (NORTHARC) Fair Value & Analysis
Financial Services · IN · Market cap ₹49.7B
Fair value as of: Aug 13, 2026
From 10 valuation models · updated 4 days ago
Fair value updated Aug 13, 2026, revised from ₹502.49 to ₹326.62 (−35.0%) since Aug 8, 2026. Share price −7.6% over the past month.
A solid business, screening 17% undervalued on our models.
What matters now
- For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
- Our model range runs from ₹234.01 (bear) to ₹408.28 (bull), base ₹326.62. The closer the price sits to the lower half, the larger the margin of safety.
- Quality 54/100 (solid quality) with high evidence: the data supports the verdict.
Price vs Fair Value (23 months)
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
23‑month range ₹166.23 – ₹325.30 · fair‑value band ₹234.01 – ₹408.28 · the ₹278.70 price screens below the ₹326.62 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.
Analysis
Northern Arc Capital Ltd (NORTHARC) currently trades at ₹278.70, while our model-based Fair Value estimate is ₹326.62, implying the stock looks roughly 17.2% undervalued today. The Quality Score stands at 54/100 (solid quality), in the Financial Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.
Over the trailing twelve months, Northern Arc Capital Ltd generated revenue of ₹13.8B at a net margin of 29.4%. Revenue grew 28.1% year over year. It earns a return on equity of 11.0%. Net debt stands at ₹118B. Fundamentals as of Aug 13, 2026
Our scenario range runs from ₹234.01 (bear case) to ₹408.28 (bull case); at ₹278.70, the current price sits within 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 13% below its 52-week high and 35% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at -45% fair-value upside, at 17%, NORTHARC screens cheaper 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 10 models by family
Widest divergence: Growth DCF (₹2,991) versus Asset-Based (₹161.51). 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 53 · Market factors (momentum, volatility) 52
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
Northern Arc Capital Limited operates as a non-banking financial company in India. It operates through Financing Activity, Investment Advisory Services, and Investment Management Services segments.
Full company description
Northern Arc Capital Limited operates as a non-banking financial company in India. It operates through Financing Activity, Investment Advisory Services, and Investment Management Services segments. The company offers lending and allied services, such as advisory and syndication services; loans for personal, business, education, and mortgage purposes; MSME financing, MFI, consumer and vehicle finance, and housing and agriculture finance; rural financing; mid-market corporate lending, loans against property, and supply chain finance; and fund management services, including alternative investment funds and portfolio management services. It also provides debt products, such as term and working capital loans, non-convertible debentures, principal protected market linked debentures, commercial papers, external commercial borrowings, and sub-debt products; and credit-enhanced debt products, including guarantee-backed lending, single issuer partial credit enhanced, and pooled loan and bond issuance program. In addition, the company offers portfolio financing products comprising rated securitization, multi-originator microfinance securitization, persistent securitizations, and direct assignment. Further, it provides Altifi, an alternative retail debt investment platform; Nimbus, a curated debt platform that enables end-to-end processing of debt transactions; nPOS, a co-lending and co-origination technology solution; and NuScore, a customized machine learning based analytical module designed to assist in the loan underwriting process. The company serves rural and retail customers; micro, small, and medium enterprises; originator partners; emerging corporates; and institutional investors. The company was formerly known as IFMR Capital Finance Limited and changed its name to Northern Arc Capital Limited in February 2018. Northern Arc Capital Limited was incorporated in 1989 and is based in Chennai, India.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2022 – FY2026 · reported fiscal years
Northern Arc Capital Ltd reported revenue of ₹27.0B in FY2026 versus ₹7.2B in FY2022, a compound +39.0%/yr. Reported net income was ₹4.1B in FY2026, compounding +22.2%/yr from FY2022.
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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.
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 | ₹1,094 | ₹397.61 | -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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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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