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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 543243 | NSE: EQUITASBNK

Equitas Small Finance Bank Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 10:14 pm

Market Cap 7,249 Cr.
Current Price 63.6
High / Low116/62.0
Stock P/E16.2
Book Value 52.6
Dividend Yield1.57 %
ROCE8.97 %
ROE14.4 %
Face Value 10.0
PEG Ratio1.50

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Equitas Small Finance Bank Ltd

Competitors of Equitas Small Finance Bank Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Fino Payments Bank Ltd 2,735 Cr. 329467/24929.3 77.30.00 %7.07 %14.4 % 10.0
Yes Bank Ltd 59,969 Cr. 19.132.8/19.033.5 14.30.00 %5.83 %3.18 % 2.00
Ujjivan Small Finance Bank Ltd 6,322 Cr. 32.763.0/32.65.43 28.74.59 %11.1 %26.7 % 10.0
South Indian Bank Ltd 5,876 Cr. 22.436.9/22.24.85 33.71.34 %6.19 %13.8 % 1.00
Karnataka Bank Ltd 7,538 Cr. 200287/1925.62 2882.75 %6.24 %13.7 % 10.0
Industry Average159,236.10 Cr403.0514.41197.151.01%7.10%13.93%5.95

All Competitor Stocks of Equitas Small Finance Bank Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Revenue8198449018969401,0021,0631,1561,2541,3591,4291,4451,501
Interest358360360343360393416449511593644659699
Expenses550579529540587602571685662680715758974
Financing Profit-89-951213-77772281867028-173
Financing Margin %-11%-11%1%1%-1%1%7%2%6%6%5%2%-12%
Other Income104152134148133145153239171181205240209
Depreciation0000000000000
Profit before tax145714616112715222926125226727626836
Tax %16%28%26%26%23%24%26%27%24%26%27%23%28%
Net Profit12411081209711617019019119820220826
EPS in Rs0.100.360.940.950.770.931.361.711.721.771.791.830.23
Gross NPA %4.76%4.82%4.39%4.24%4.10%3.91%3.63%2.76%2.75%2.27%2.53%2.61%2.73%
Net NPA %2.38%2.46%2.38%2.47%2.15%1.97%1.82%1.21%1.18%0.97%1.13%1.17%0.83%

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2011Mar 2012Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Revenue064089811,5432,1122,6453,1943,4604,1625,4865,733
Interest021594606849641,1501,3961,4211,6172,4072,595
Expenses0172305619641,0151,3041,6282,1232,3612,8153,127
Financing Profit-0-1319-40-105133191170-8418426411
Financing Margin %-1,100%-208%5%-4%-7%6%7%5%-2%4%5%0%
Other Income0071233241283282418538670799836
Depreciation0053288929676758500
Profit before tax-0-1385161493243775113787691,063847
Tax %0%0%0%36%34%35%35%25%26%25%25%
Net Profit-0-138510432211244384281574799634
EPS in Rs-3.96-2.132.011.040.322.092.313.372.245.167.045.62
Dividend Payout %0%0%0%0%0%0%0%0%0%19%14%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)22.35%-69.23%559.38%15.64%57.38%-26.82%104.27%39.20%
Change in YoY Net Profit Growth (%)0.00%-91.58%628.61%-543.74%41.74%-84.20%131.09%-65.07%

Equitas Small Finance Bank Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 8 years from 2016-2017 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:%
5 Years:21%
3 Years:20%
TTM:23%
Compounded Profit Growth
10 Years:%
5 Years:31%
3 Years:28%
TTM:-40%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:1%
1 Year:-33%
Return on Equity
10 Years:%
5 Years:12%
3 Years:12%
Last Year:14%

Last Updated: Unknown

Balance Sheet

Last Updated: September 15, 2024, 3:44 pm

MonthMar 2011Mar 2012Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital6614231,0061,0061,0061,0531,1391,2521,1111,135
Reserves-0-132881,0061,0381,2481,6912,2572,9944,0474,834
Borrowings0441,6386,70010,78112,98015,92320,55721,56728,32237,917
Other Liabilities014655334855296287551,1341,4781,418
Total Liabilities51052,4149,24513,31015,76319,29624,70826,94834,95845,304
Fixed Assets0411274280236210184189338537
CWIP000151221114168
Investments0001,8903,8572,3442,3433,7054,4506,6659,065
Other Assets51022,4037,0669,17213,18116,74020,81822,29727,91435,634
Total Assets51052,4149,24513,31015,76319,29624,70826,94834,95845,304

Reserves and Borrowings Chart

Cash Flow

MonthMar 2011Mar 2012Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-3361,3342131,7994402,044159-9984,297
Cash from Investing Activity +-9-405-11-7-72-43-8949-421
Cash from Financing Activity +168-563-28-1,706908-1,154-1,31760-1,612
Net Cash Flow-177366173861,276847-1,246-8882,264

Free Cash Flow

MonthMar 2011Mar 2012Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow0.00-27.00229.00555.00954.00-11.00-14.00-19.00-19.00-26.00-35.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2011Mar 2012Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
ROE %-49%8%2%10%10%13%7%12%14%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters81.36%74.59%74.52%74.50%74.48%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
FIIs0.74%3.62%4.09%4.26%4.08%22.69%21.45%18.16%19.61%19.50%19.65%16.91%
DIIs12.78%16.69%15.59%15.36%15.34%42.97%42.96%43.93%45.64%45.21%45.42%43.66%
Public5.12%5.10%5.80%5.86%6.09%34.33%35.58%37.91%34.74%35.28%34.93%39.42%
No. of Shareholders1,13,4051,27,0731,34,1081,35,5851,35,0123,17,9163,24,1303,62,7513,61,7093,72,3043,81,6824,44,544

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Small Cap Fund - Regular Plan60,564,5261.87588.4420,905,9732024-11-20189.7%
Franklin India Smaller Companies Fund48,064,0813.33466.9920,905,9732024-11-20129.91%
SBI Long Term Equity Fund30,472,6931.15296.0720,905,9732024-11-2045.76%
SBI Contra Fund29,985,5460.85291.3420,905,9732024-11-2043.43%
Franklin India Prima Fund23,580,3551.91229.1120,905,9732024-11-2012.79%
Canara Robeco Small Cap Fund20,905,9731.77203.1220,905,9732024-11-200%
Invesco India Contra Fund15,656,6070.94152.1220,905,9732024-11-20-25.11%
DSP Small Cap Fund13,711,2540.87133.2220,905,9732024-11-20-34.41%
Nippon India Banking & Financial Services Fund13,478,0772.21130.9520,905,9732024-11-20-35.53%
Invesco India Focused Fund12,661,5474.36123.0220,905,9732024-11-20-39.44%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
Face Value10.0010.0010.0010.0010.00
Basic EPS (Rs.)7.124.712.433.532.39
Diluted EPS (Rs.)7.014.672.403.492.39
Cash EPS (Rs.)8.225.932.844.043.23
Book Value[Excl.RevalReserv]/Share (Rs.)52.5946.4433.9129.8126.05
Book Value[Incl.RevalReserv]/Share (Rs.)52.5946.4433.9129.8126.05
Operating Revenue / Share (Rs.)48.3437.4827.6328.0425.11
Net Profit / Share (Rs.)7.045.162.243.372.31
Interest Income / Employee (Rs.)0.002023964.451964939.681929459.531642520.74
Net Profit / Employee (Rs.)0.00278943.00159443.29232074.90151269.96
Business / Employee (Rs.)0.0024888932.7421766912.7620077264.0715233855.09
Interest Income / Branch (Rs.)0.0047564321.1440181989.5537101198.6130977094.85
Net Profit / Branches (Rs.)0.006555320.003260531.944462522.652852873.54
Business / Branches (Rs.)0.00584904141.71445121989.55386061770.03287302658.08
Net Profit Margin (%)14.5613.788.1112.029.20
Operating Profit Margin (%)0.00-2.30-7.42-1.05-1.46
Return On Assets (%)1.761.641.041.551.26
Return On Equity / Networth (%)13.3811.126.6111.318.87
Net Interest Margin (X)6.797.277.567.277.74
Cost To Income (%)64.4863.4166.1559.9966.38
Interest Income / Total Assets (%)12.1111.9012.8312.9213.69
Non-Interest Income / Total Assets (%)1.761.911.991.691.46
Operating Profit / Total Assets (%)0.00-0.27-0.95-0.13-0.20
Operating Expenses / Total Assets (%)5.525.836.325.376.10
Interest Expenses / Total Assets (%)5.314.625.275.655.95
Enterprise Value (Rs.Cr.)44903.8734628.9227014.3326883.850.00
EV Per Net Sales (X)8.188.327.818.420.00
Price To Book Value (X)1.761.441.512.010.00
Price To Sales (X)1.911.791.852.140.00
Retention Ratios (%)100.00100.00100.00100.00100.00
Earnings Yield (X)0.070.070.040.050.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Equitas Small Finance Bank Ltd as of November 21, 2024 is: 124.63

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, Equitas Small Finance Bank Ltd is Undervalued by 95.96% compared to the current share price 63.60

Intrinsic Value of Equitas Small Finance Bank Ltd as of November 21, 2024 is: 138.05

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, Equitas Small Finance Bank Ltd is Undervalued by 117.06% compared to the current share price 63.60

Last 5 Year EPS CAGR: 10.77%

*Investments are subject to market risks

Strength and Weakness

Unable to fetch valid data for stock valuation.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Equitas Small Finance Bank Ltd:
    1. Net Profit Margin: 14.56%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 0% (Industry Average ROCE: 7.1%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 0% (Industry Average ROE: 13.93%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 0
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 16.2 (Industry average Stock P/E: 14.41)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Equitas Small Finance Bank Ltd. is a Public Limited Listed company incorporated on 21/06/1993 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L65191TN1993PLC025280 and registration number is 025280. Currently Company is involved in the business activities of Monetary intermediation of commercial banks, saving banks. postal savings bank and discount houses. Company’s Total Operating Revenue is Rs. 3459.67 Cr. and Equity Capital is Rs. 1252.03 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Finance - Banks - Private Sector4th Floor, Phase II, Spencer Plaza, Chennai (Madras) Tamil Nadu 600002corporate@equitas.in
http://www.equitasbank.com
Management
NamePosition Held
Mr. Anil Kumar SharmaPart Time Chairman & Non-Exe. Ind. Director
Mr. Vasudevan Pathangi NarasimhanManaging Director & CEO
Mr. Ramesh RanganInd. Non-Executive Director
Mr. Narayanaswamy BalakrishnanInd. Non-Executive Director
Mr. Vinod Kumar SharmaInd. Non-Executive Director
Mr. Gulshan RaiInd. Non-Executive Director
Mr. Samir Kumar BaruaInd. Non-Executive Director
Ms. Geeta Dutta GoelInd. Non-Executive Director
Mr. Arun Kumar VermaInd. Non-Executive Director
Mr. Navin Avinashchander PuriInd. Non-Executive Director
Mr. K S SampathAddnl.Non Exe.Independent Director
Mr. N R NarayananAddnl.Non Exe.Independent Director
Mr. Ramkumar KrishnaswamyAddnl.Non Exe.Independent Director

FAQ

What is the latest intrinsic value of Equitas Small Finance Bank Ltd?

The latest intrinsic value of Equitas Small Finance Bank Ltd as on 21 November 2024 is ₹124.63, which is 95.96% higher than the current market price of ₹63.60.

What is the Market Cap of Equitas Small Finance Bank Ltd?

The Market Cap of Equitas Small Finance Bank Ltd is 7,249 Cr..

What is the current Stock Price of Equitas Small Finance Bank Ltd as on 21 November 2024?

The current stock price of Equitas Small Finance Bank Ltd as on 21 November 2024 is ₹63.6.

What is the High / Low of Equitas Small Finance Bank Ltd stocks in FY 2024?

In FY 2024, the High / Low of Equitas Small Finance Bank Ltd stocks is 116/62.0.

What is the Stock P/E of Equitas Small Finance Bank Ltd?

The Stock P/E of Equitas Small Finance Bank Ltd is 16.2.

What is the Book Value of Equitas Small Finance Bank Ltd?

The Book Value of Equitas Small Finance Bank Ltd is 52.6.

What is the Dividend Yield of Equitas Small Finance Bank Ltd?

The Dividend Yield of Equitas Small Finance Bank Ltd is 1.57 %.

What is the ROCE of Equitas Small Finance Bank Ltd?

The ROCE of Equitas Small Finance Bank Ltd is 8.97 %.

What is the ROE of Equitas Small Finance Bank Ltd?

The ROE of Equitas Small Finance Bank Ltd is 14.4 %.

What is the Face Value of Equitas Small Finance Bank Ltd?

The Face Value of Equitas Small Finance Bank Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Equitas Small Finance Bank Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE