Arman Financial Services : Will Surely Fulfill all Your Wishes..

The Hidden microfinance company — Arman Financial services can be a sure shot multibagger that can deliver over lOx returns over 3-5 years of time. The CMP of Arman is Rs.26.6 and I set a target of Rs.300 within 5 years of time. The main attraction in Arman is Mr. Lokesh Singh who has been working for the SKS Microfinance for several years. The other attraction is that this company lends money to group of ladies where in if one borrower defaults, the whole group is made responsible. Therefore, other members put social pressure on the defaulter to repay which is remarkably effective. The lending model that they follow is the JLG (Joint Liability Group) model, that was established by Dr.Muhammad Yunus and the bank he founded, Grameen Bank, which created new category of banking by granting millions of small loans to poor people with no collateral helping to establish the microcredit movement across the developing world.
Arman’s Micro Finance operations are in full swing with 14 branches fully operational all over Gujarat in urban, semi-urban and rural areas. Arman expects to have 37 branches fully operational by the end of fiscal 201 0-11. Within 18 month of operations, Arman has a total disbursement in JLG model Microfinance activities approaching 12 crore with approximately 12,000 members. Arman expects to have a disbursements of Rs.50 crore in microfinance activities by the end of fiscal 2010-2011. /Jl the ystems, including H.R, MUS, Accounts, Operations and internal controls have been tediously developed and are fully operational. The board is coming out with a rights issue at just Rs.15 and according to me the comany price should come
down to Rs.22, any price below Rs.20 is a steal. The stock could perform in the following manner.
1 year: Target 50±
3 years: Target 150+
5 years: Target 300+.