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Last Updated on: 21 April, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 543959 | NSE: SBFC

Fundamental Analysis of SBFC Finance Ltd

Basic Stock Data

Last Updated: April 21, 2024, 9:23 am

Market Cap 9,428 Cr.
Current Price 87.8
High / Low98.0/72.2
Stock P/E45.7
Book Value 24.3
Dividend Yield0.00 %
ROCE9.91 %
ROE9.98 %
Face Value 10.0

Data Source: screener.in

Competitors of SBFC Finance Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Industry Average0 Cr0000%0%0%0

Quarterly Result

MonthJun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales160176189208230246264
Expenses54646369758390
Operating Profit106112127139154163174
OPM %66%64%67%67%67%66%66%
Other Income0151000
Interest60627679898985
Depreciation3333333
Profit before tax43485358637186
Tax %25%25%25%26%25%26%25%
Net Profit32363943475364
EPS in Rs0.360.400.440.480.510.490.60

Last Updated: April 10, 2024, 6:09 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: April 6, 2024, 3:01 am

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales177445510529734947
Expenses89134149210247318
Operating Profit87311362319487629
OPM %50%70%71%60%66%66%
Other Income001152
Interest50244239222278341
Depreciation2810121313
Profit before tax355911487201277
Tax %30%39%25%26%26%
Net Profit24368565150206
EPS in Rs0.360.461.030.771.672.08
Dividend Payout %-0%-0%-0%-0%-0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)50.00%136.11%-23.53%130.77%
Change in YoY Net Profit Growth (%)0.00%86.11%-159.64%154.30%

Growth

Compounded Sales Growth
10 Years:%
5 Years:%
3 Years:18%
TTM:39%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:62%
TTM:132%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:%
1 Year:%
Return on Equity
10 Years:%
5 Years:%
3 Years:8%
Last Year:10%

Last Updated: April 17, 2024, 9:30 am

Balance Sheet

Last Updated: April 21, 2024, 11:43 pm

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital6767427978078901,059
Reserves2042704084808381,540
Borrowings8423,0562,7682,9403,7393,657
Other Liabilities71140258288280324
Total Liabilities1,7934,2084,2314,5155,7476,580
Fixed Assets270294301299296296
CWIP000010
Investments1671,8791,484848607476
Other Assets1,3562,0352,4463,3684,8435,808
Total Assets1,7934,2084,2314,5155,7476,580

Reserves and Borrowings Chart

Cash Flow

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -368-383-275-822-1,245
Cash from Investing Activity 146-1,863375652206
Cash from Financing Activity 3952,291-1871831,071
Net Cash Flow17345-871332

Free Cash Flow

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-755.00308.00360.00317.00484.00

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 2023
Debtor Days03365
Inventory Days
Days Payable
Cash Conversion Cycle03365
Working Capital Days-130-36-143-151-120
ROCE %10%9%8%10%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2023Dec 2023
Promoters64.05%63.74%
FIIs2.74%2.23%
DIIs12.42%11.94%
Public20.36%21.88%
Others0.45%0.22%
No. of Shareholders1,19,1091,29,470

Shareholding Pattern Chart

No. of Shareholders

SBFC Finance Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
SBI Small Cap Fund699999992.53629.65
ICICI Prudential Banking and Financial Services52631570.6446.95
HDFC Banking and Financial Services Fund52631581.3542.61
Aditya Birla Sun Life Banking And Financial Services Fund45082491.3140.55
HDFC Banking and Financial Services Fund33332000.9529.98
SBI Banking & Financial Services Fund30331600.5527.28
SBI Retirement Benefit Fund - Aggressive Plan27284201.1524.25
Tata Banking and Financial Services Fund23563761.0921.2
ICICI Prudential Banking and Financial Services21982420.2719.77
Franklin India Smaller Companies Fund17583800.1315.82

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22
FaceValue10.0010.00
Basic EPS (Rs.)1.710.81
Diluted EPS (Rs.)1.620.79
Cash EPS (Rs.)1.830.94
Book Value[Excl.RevalReserv]/Share (Rs.)19.4215.95
Book Value[Incl.RevalReserv]/Share (Rs.)19.4215.95
Revenue From Operations / Share (Rs.)8.246.56
PBDIT / Share (Rs.)5.513.96
PBIT / Share (Rs.)5.373.81
PBT / Share (Rs.)2.261.07
Net Profit / Share (Rs.)1.680.79
NP After MI And SOA / Share (Rs.)1.680.79
PBDIT Margin (%)66.9360.31
PBIT Margin (%)65.2058.08
PBT Margin (%)27.4716.38
Net Profit Margin (%)20.4312.19
NP After MI And SOA Margin (%)20.4312.19
Return on Networth / Equity (%)8.665.01
Return on Capital Employeed (%)26.7022.62
Return On Assets (%)2.601.42
Long Term Debt / Equity (X)0.020.03
Total Debt / Equity (X)2.162.28
Asset Turnover Ratio (%)0.140.00
Current Ratio (X)1.371.32
Quick Ratio (X)1.371.32
Interest Coverage Ratio (X)1.771.45
Interest Coverage Ratio (Post Tax) (X)1.541.29

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 113.05

The stock is undervalued by 28.75% compared to the current price ₹87.8

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.

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -116.00, which is a positive sign.
  2. The company has shown consistent growth in sales (557.00 cr) and profit (128.83 cr) over the years.
  1. The stock has a low average ROCE of 7.40%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 3.40, which may not be favorable.
  3. The company has higher borrowings (2,833.67) compared to reserves (623.33), which may suggest financial risk.

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 SBFC Finance Ltd:
    1. Net Profit Margin: 20.43%
      • 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: 26.70% (Industry Average ROCE: 0%)
      • 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%: 8.66% (Industry Average ROE: 0%)
      • 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): 1.54
      • 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: 1.37
      • 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: 45.7 (Industry average Stock P/E: 0)
      • 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: 2.16
      • 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

Finance & Investments
INDUSTRYADDRESSCONTACT
103, 1st Floor, C&B Square, Sangam Complex, Mumbai Maharashtra 400059Mr.Neeraj%20Swaroop
Chairperson%20&%20Independent%20Director
Management
NamePosition Held
Mr. Aseem DhruManaging Director & CEO
Mr. Amol JainNon Exe. & Nominee Director
Mr. Arjun SakhujaNon Exe. & Nominee Director
Mr. John MescallNon Exe. & Nominee Director
Mr. Jonathan Tadeusz TaturNon Exe. & Nominee Director
Mr. Rajesh Mannalal AgrawalIndependent Director
Ms. Surekha MarandiIndependent Director

SBFC Finance Ltd. Share Price Update

Share PriceValue
Today₹88.35
Previous Day₹88.21

FAQ

What is the latest fair value of SBFC Finance Ltd?

The latest fair value of SBFC Finance Ltd is 113.05.

What is the Market Cap of SBFC Finance Ltd?

The Market Cap of SBFC Finance Ltd is 9,428 Cr..

What is the current Stock Price of SBFC Finance Ltd as on 21 April 2024?

The current stock price of SBFC Finance Ltd as on 21 April 2024 is 87.8.

What is the High / Low of SBFC Finance Ltd stocks in FY 2024?

In FY 2024, the High / Low of SBFC Finance Ltd stocks is ₹98.0/72.2.

What is the Stock P/E of SBFC Finance Ltd?

The Stock P/E of SBFC Finance Ltd is 45.7.

What is the Book Value of SBFC Finance Ltd?

The Book Value of SBFC Finance Ltd is 24.3.

What is the Dividend Yield of SBFC Finance Ltd?

The Dividend Yield of SBFC Finance Ltd is 0.00 %.

What is the ROCE of SBFC Finance Ltd?

The ROCE of SBFC Finance Ltd is 9.91 %.

What is the ROE of SBFC Finance Ltd?

The ROE of SBFC Finance Ltd is 9.98 %.

What is the Face Value of SBFC Finance Ltd?

The Face Value of SBFC Finance 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 SBFC Finance 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