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Last Updated on: 04 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 544020 | NSE: ESAFSFB

ESAF Small Finance Bank Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 31, 2024, 10:52 am

Market Cap 2,273 Cr.
Current Price 44.2
High / Low82.4/42.0
Stock P/E6.35
Book Value 48.4
Dividend Yield1.58 %
ROCE8.91 %
ROE20.2 %
Face Value 10.0
PEG Ratio0.25

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

View Share Price Target for ESAF Small Finance Bank Ltd

Competitors of ESAF Small Finance Bank Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
ESAF Small Finance Bank Ltd 2,273 Cr. 44.282.4/42.06.35 48.41.58 %8.91 %20.2 % 10.0
Industry Average2,273.00 Cr44.206.3548.401.58%8.91%20.20%10.00

All Competitor Stocks of ESAF Small Finance Bank Ltd

Quarterly Result

MonthMar 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Revenue3855986906887017748999439741,0021,022
Interest178220242251250275313347377411434
Expenses198285355425481457505487567682619
Financing Profit10929412-30428110930-91-30
Financing Margin %2%15%14%2%-4%5%9%12%3%-9%-3%
Other Income4849486581949379120150115
Depreciation-0-0-0-0-0-0-0-0-0-0-0
Profit before tax5714114277511361741881505985
Tax %24%25%25%25%27%26%25%26%25%26%26%
Net Profit4310610658371011301401124363
EPS in Rs0.962.352.361.280.832.262.893.122.180.841.22
Gross NPA %6.70%7.83%6.16%8.11%7.24%2.49%1.65%2.64%4.16%4.76%6.61%
Net NPA %3.88%3.92%3.78%4.34%3.73%1.13%0.81%1.19%2.19%2.26%3.22%

Last Updated: October 7, 2024, 8:06 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Revenue1,0321,4131,6411,9402,8543,8183,942
Interest4586217207931,0171,4491,570
Expenses5386468791,2481,6762,1902,355
Financing Profit3514643-10116018018
Financing Margin %3%10%3%-5%6%5%0%
Other Income109133127208288442464
Depreciation1723293342510
Profit before tax12725614174406570482
Tax %29%26%25%26%26%25%
Net Profit9019010555302426358
EPS in Rs2.114.452.341.226.738.277.36
Dividend Payout %0%0%0%0%0%8%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)111.11%-44.74%-47.62%449.09%41.06%
Change in YoY Net Profit Growth (%)0.00%-155.85%-2.88%496.71%-408.03%

ESAF Small Finance Bank Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 5 years from 2019-2020 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:%
5 Years:30%
3 Years:33%
TTM:29%
Compounded Profit Growth
10 Years:%
5 Years:36%
3 Years:59%
TTM:10%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:%
1 Year:%
Return on Equity
10 Years:%
5 Years:15%
3 Years:16%
Last Year:20%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital428428449449449515
Reserves4666569039621,2661,977
Borrowings6,0198,23210,69315,76818,02023,090
Other Liabilities145154293528489505
Total Liabilities7,0589,47012,33917,70820,22426,087
Fixed Assets86116133159188205
CWIP446003
Investments1,5311,7341,9324,0704,8895,541
Other Assets5,4387,61610,26813,47815,14720,338
Total Assets7,0589,47012,33917,70820,22426,087

Reserves and Borrowings Chart

Cash Flow

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity -2391,0891,127-584-5711,001
Cash from Investing Activity -171-635-638-982-573-583
Cash from Financing Activity 488-4996531,259399235
Net Cash Flow78-451,143-308-745654

Free Cash Flow

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow532.00638.00869.00-14.00-17.00-21.00

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 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
ROE %19%9%4%19%20%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2023Mar 2024Jun 2024
Promoters63.39%63.39%63.39%
FIIs1.16%0.81%0.12%
DIIs10.98%10.26%8.90%
Public24.48%25.53%27.57%
No. of Shareholders94,7131,02,1241,07,413

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Motilal Oswal Nifty Microcap 250 Index Fund142,9090.050.74142,9092024-11-020%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 21Mar 20Mar 19
Face Value10.0010.0010.0010.0010.00
Basic EPS (Rs.)8.966.732.464.452.37
Diluted EPS (Rs.)8.946.712.464.452.37
Cash EPS (Rs.)9.267.662.984.992.50
Book Value[Excl.RevalReserv]/Share (Rs.)48.4138.1630.0825.3420.89
Book Value[Incl.RevalReserv]/Share (Rs.)48.4138.1630.0825.3420.89
Operating Revenue / Share (Rs.)74.1763.4936.5133.0324.11
Net Profit / Share (Rs.)8.276.732.344.452.11
Interest Income / Employee (Rs.)6399240.495668770.364315469.374235076.424758482.47
Net Profit / Employee (Rs.)713202.11600582.04277139.10570542.40416439.11
Business / Employee (Rs.)63953268.3156793714.7445140709.9740683859.7540891429.89
Interest Income / Branch (Rs.)50709519.2640766557.1429839509.0931128744.4924331108.49
Net Profit / Branches (Rs.)5651629.484319042.861916290.914193612.332129339.62
Business / Branches (Rs.)506785062.42408427942.86312127490.91299035330.40209086367.92
Net Profit Margin (%)11.1410.596.4213.478.75
Operating Profit Margin (%)-0.420.50-1.264.04-1.82
Return On Assets (%)1.631.490.852.011.27
Return On Equity / Networth (%)17.0717.627.7917.5610.10
Net Interest Margin (X)9.089.087.468.368.12
Cost To Income (%)58.6457.9253.3147.5251.91
Interest Income / Total Assets (%)14.6314.1113.3014.9214.61
Non-Interest Income / Total Assets (%)1.691.421.021.401.54
Operating Profit / Total Assets (%)-0.060.07-0.160.60-0.26
Operating Expenses / Total Assets (%)6.326.085.126.346.42
Interest Expenses / Total Assets (%)5.555.035.836.556.49
Enterprise Value (Rs.Cr.)24515.800.000.000.000.00
EV Per Net Sales (X)6.420.000.000.000.00
Price To Book Value (X)1.120.000.000.000.00
Price To Sales (X)0.730.000.000.000.00
Retention Ratios (%)100.00100.00100.00100.00100.00
Earnings Yield (X)0.150.000.000.000.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of ESAF Small Finance Bank Ltd as of November 4, 2024 is: 63.06

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 4, 2024, ESAF Small Finance Bank Ltd is Undervalued by 42.67% compared to the current share price ₹44.20

Intrinsic Value of ESAF Small Finance Bank Ltd as of November 4, 2024 is: 79.30

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 4, 2024, ESAF Small Finance Bank Ltd is Undervalued by 79.41% compared to the current share price ₹44.20

Last 5 Year EPS CAGR: 25.76%

*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 ESAF Small Finance Bank Ltd:
    1. Net Profit Margin: 11.14%
      • 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: 8.91%)
      • 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: 20.2%)
      • 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: 6.35 (Industry average Stock P/E: 6.35)
      • 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

Finance - Banks - Private Sector
INDUSTRYADDRESSCONTACT
Building No.VII/83/8, Thrissur/Trichur Kerala 680651Mr.Ravimohan%20Periyakavil%20Ramakrishnan
Non%20Exe.%20Ind.%20Part%20Time%20Chairman
Management
NamePosition Held
Mr. Kadambelil Paul ThomasManaging Director & CEO
Dr. Joseph Vadakkekara AntonyNon Executive Director
Ms. Kolasseril Chandramohanan RanjaniInd. Non-Executive Director
Mr. Biju VarkkeyInd. Non-Executive Director
Mr. Ravi VenkatramanInd. Non-Executive Director
Mr. Vinod Vijayalekshmi VasudevanInd. Non-Executive Director
Mr. Thomas Jacob KalappilaInd. Non-Executive Director
Mr. John SamuelNon Exe. & Nominee Director
Mr. Ajayan Mangalath Gopalakrishnan NairNon Exe. & Nominee Director

FAQ

What is the latest fair value of ESAF Small Finance Bank Ltd?

The latest fair value of ESAF Small Finance Bank Ltd is ₹63.06.

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

The Market Cap of ESAF Small Finance Bank Ltd is 2,273 Cr..

What is the current Stock Price of ESAF Small Finance Bank Ltd as on 03 November 2024?

The current stock price of ESAF Small Finance Bank Ltd as on 03 November 2024 is 44.2.

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

In FY 2024, the High / Low of ESAF Small Finance Bank Ltd stocks is 82.4/42.0.

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

The Stock P/E of ESAF Small Finance Bank Ltd is 6.35.

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

The Book Value of ESAF Small Finance Bank Ltd is 48.4.

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

The Dividend Yield of ESAF Small Finance Bank Ltd is 1.58 %.

What is the ROCE of ESAF Small Finance Bank Ltd?

The ROCE of ESAF Small Finance Bank Ltd is 8.91 %.

What is the ROE of ESAF Small Finance Bank Ltd?

The ROE of ESAF Small Finance Bank Ltd is 20.2 %.

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

The Face Value of ESAF 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 ESAF 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