Review

VLS FINANCE LTD.

Ticker: 511333
FV: ₹ 10
52-Week H/L: ₹ 264.85/95

We recommended VLS Finance Ltd in volume no. 38, issue no. 14 (dated January 24, 2022) when the scrip was trading at Rs 218.85. On the quarterly front, the net interest earned by the bank in Q3FY22 came in at Rs 2.22 crore as against Rs 1.59 crore in Q3FY21, an increase of 3.96 per cent. The total income in Q3FY22 was Rs 106.18 crore, a strong increase of 64.3 per cent from Rs 64.62 crore reported in Q3FY21. The profit after tax rose robustly to reach Rs 104.31 crore in Q3FY22 from Rs 70.72 crore in Q3FY21. Rate increase from RBI is likely to be advantageous towards higher margins and higher net interest margins within financial services companies on a domestic as well as global basis. The companies in the financial services sector are expected to post robust results for Q4FY22. Hence, we recommend HOLD.