India, Sept. 16 -- Many businesses thrive by avoiding extremes. Small shopkeepers often find themselves too large for microfinance but too small for traditional bank loans, leaving them with limited options. This NBFC has developed a unique lending model over the past decade, utilizing unconventional collateral and a deep understanding of small business cash flows to cater to these underserved customers. The brokerage sees this strategy, along with an earnings recovery, as warranting a premium valuation.

With a market capitalization of approximately 4,441 crore, the shares of Aye Finance Limited were trading at 180, with a 52-week range of 198 to 88, and the stock trades at a P/E of approximately 19x.

ICICI Securities: Bridging the Mis...