iifl-logo-icon 1

Stellar Capital Services Ltd Management Discussions

Jul 19, 2024|12:00:00 AM

Stellar Capital Services Ltd Share Price Management Discussions

Your Company is a NBFC focused on providing bespoke financing solutions to its customers and has been in existence for more than two decades. At present, the Company falls within the category of "Non-Banking Finance Company - Non-Deposit taking Company". Your Company is registered with the RBI as a NBFC not accepting public deposits under section 45 IA of the RBI Act, 1934.

Stellar has an in-house team of experts to evaluate, value and estimate marketability of all kinds of assets. The Companys product suite is as follows:

Working Capital Loan

• Short-term financial support for hassle-free management of day-to-day operations.

• Easy option to cover recurring expenses like inventory management, accounts payable and payroll.

• Flexible options to cater to seasonal fluctuations in business.

Project Finance

• Capital funding to mid-range and emerging corporates, based on projected cash flows and sufficient collateral.

• Financial assistance for expansion, diversification, funding for capital expenditure and other growth-oriented strategies of businesses.

• Well-defined processes backed by credit appraisal and secured by project assets. Loan Against Property

• Easy loans against property collateral for various corporate requirements, ranging from debt consolidation to take over of existing facilities.

• Equitable or registered mortgage over the financed property, with personal guarantee and corporate guarantee.

• Enhanced focus on collateral valuation and loan serviceability.

Project Finance - Real Estate

• Project-specific funding to facilitate the acquisition, construction and development of residential, commercial, retail, township and industrial real estate projects.

• Long-term loans for re-development projects and property development ventures.

Structured Finance

• Customized term loans, inter-corporate deposits, subscription to debt instruments and convertible preference shares.

• Tailormade structured financial services to support acquisitions, expansions, buyouts and diversifications.

• Promoter funding secured against property, pledge of marketable securities or fixed deposits, guarantee of corporate entity, owner or promoter, debt service reserve account, etc.

Our Strengths

Over its long existence of over two decades, Your Company has gained rich experience and developed core expertise in serving the large and medium corporate customers. Your Company has channelized financial assistance across all major sectors of economy and built a well-diversified portfolio in infrastructure, real estate, manufacturing, services, and NBFC sectors.

Experienced, highly motivated and dedicated management team

We have an experienced, highly motivated and dedicated senior management team, with significant experience in the banking, financial services, consultancy and infrastructure sectors. Our new and dynamic senior management team has already implemented a number of changes in the Company for steady growth of the business. One of the changes was to diversify our lending focus to become sector agnostic and lend with a focus on good quality collateral asset.

Our employee-friendly and inclusive policies, health and fitness benefits ensure safe and secured environment for employees at workplace.

Our Strategies

Focus on Emerging Corporate / SME segment borrower category:

Emerging corporates and SME players add to the growth story of India. As part of Portfolio diversification strategy, your company intends to lend to this segment which is fast growing and provides a healthy Portfolio on Companys balance sheet. Your Companys management has decade long experience in financial services and understands this segment so as to lend judiciously.


In view of the growing volatility in the operating environment impacting global businesses on an unprecedented scale, we are reinforcing the risk management and mitigation mechanism. It will be regularly reviewed by the Board and corrective actions will be implemented with diligence.

Risk management process

The risk management system includes the following key elements:

A strategy that is driven by objectives and principles.

1. Clearly defined assignment of responsibilities across hierarchies.

2. A framework and reporting cycle to identify, assess, manage, monitor and report the risks that the Company is or may be exposed to.

3. A combination of ‘top down and "bottom up approach to risk assessment and management process.

4. A risk monitoring plan that outlines the review, challenge and oversight activities.

5. Reporting procedures which ensure risk information is actively monitored, managed and appropriately communicated at all levels within the Company.

6. Embedding a robust and resilient risk-management culture across all hierarchies of the Company.

Developing risk appetite statements with the strategic planning process subsequently monitoring and reporting on these statements

The risk management framework is based on a meticulous assessment of risks through proper analysis and understanding of the underlying risks before undertaking any transactions and changing or implementing processes and systems. This risk management mechanism is supported by regular review, control, self assessments and monitoring of key risk indicators.


Our Industry has faced certain challenges in the period under review, related to Liquidity and defaults by Large Companies, therefore there may be significant roadblocks to the growth of the Company in shorter term. Even the fall in Interest rates have not boosted the Liquidity for NBFCs, and there has been instances of Rating downgrades of NBFC and certain Housing Finance Companies, of which Reliance Home Finance is the recent example. Changes in interest rates are expected to have significant impact on the Companys business and operations. Finance costs are dependent on various external factors, including Indian and global credit markets and, in particular, interest rate movements and adequate liquidity in the debt markets. Changes in RBI repo rates could affect the interest charged on interest-earning assets and the interest rates paid on interest-bearing liabilities. Adverse conditions in the global and Indian economy resulting from economic dislocations or liquidity disruptions may adversely affect availability of credit, and decreased liquidity may lead to an increase in interest rates. Despite recent push by the RBI, the resolution of stressed assets in the system is likely to take more time. Also, the effect of various loan waivers on credit culture in the rural areas is still to be seen. Your Company acknowledges these possible negative factors and has a plan to mitigate them through its deep domain knowledge, strong risk framework and an efficient collection mechanism under the stewardship of the management team.


The details of significant changes in Key Financial Ratios are as under:

Year 2020-21 2019-20
1. Debtors Turnover Ratio -
2. Inventory Turnover Ratio 2.63 2.88
3. Interest Coverage Ratio 2.94 5.04
4. Debt Equity Ratio 0.09 0.15
5. Operating Profit Margin 59.34% 46.60%
6. Net Profit Margin 23.61% 9.40%
7. Current Ratio 12.58 7.58


Certain statements in the Management Discussion and Analysis describing the Companys objectives, predictions may be "forward-looking statements" within the meaning of applicable laws and regulations. Actual results may vary significantly from the forward-looking statements contained in this document due to various risks and uncertainties. These risks and uncertainties include the effect of economic and political conditions in India, volatility in interest rates, new regulations and Government policies that may impact the Companys business as well as its ability to implement the strategy. The Company does not undertake to update these statements.

Knowledge Centerplus

Logo IIFL Customer Care Number
1860-267-3000 / 7039-050-000

Logo IIFL Securities Support WhatsApp Number
+91 9892691696

Download The App Now

Knowledge Centerplus

Follow us on


2024, IIFL Securities Ltd. All Rights Reserved

  • Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." - Issued in the interest of investors.
  • KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
  • No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."

www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.

  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to Rs. 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
Copyright © IIFL Securities Ltd. All rights Reserved.

Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248

We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.