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Last Updated on: 21 July, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 543959 | NSE: SBFC

Fundamental Analysis of SBFC Finance Ltd

Basic Stock Data

Last Updated: July 20, 2024, 10:16 pm

Market Cap 8,714 Cr.
Current Price 81.1
High / Low98.0/72.2
Stock P/E36.8
Book Value 25.9
Dividend Yield0.00 %
ROCE10.9 %
ROE10.5 %
Face Value 10.0
PEG Ratio1.00

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 2023Mar 2024
Revenue160176189208230246264279
Interest6062767989898588
Expenses5464636975839091
Financing Profit46505160667489100
Financing Margin %29%28%27%29%29%30%34%36%
Other Income01510001
Depreciation33333334
Profit before tax4348535863718697
Tax %25%25%25%26%25%26%25%24%
Net Profit3236394347536473
EPS in Rs0.360.400.440.480.510.490.600.68
Gross NPA %2.57%2.38%2.43%
Net NPA %1.58%1.36%1.36%

Last Updated: July 11, 2024, 3:36 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: July 11, 2024, 12:23 am

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Revenue1774455105297341,019
Interest50244239222278352
Expenses89134149210247338
Financing Profit376712397209329
Financing Margin %21%15%24%18%28%32%
Other Income001151
Depreciation2810121313
Profit before tax355911487201316
Tax %30%39%25%26%26%25%
Net Profit24368565150237
EPS in Rs0.360.461.030.771.672.21
Dividend Payout %0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)50.00%136.11%-23.53%130.77%58.00%
Change in YoY Net Profit Growth (%)0.00%86.11%-159.64%154.30%-72.77%

Growth

Compounded Sales Growth
10 Years:%
5 Years:42%
3 Years:26%
TTM:39%
Compounded Profit Growth
10 Years:%
5 Years:58%
3 Years:41%
TTM:58%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:%
1 Year:%
Return on Equity
10 Years:%
5 Years:8%
3 Years:9%
Last Year:11%

Last Updated: July 18, 2024, 4:48 pm

Balance Sheet

Last Updated: July 11, 2024, 12:23 am

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital6767427978078901,072
Reserves2042704084808381,706
Borrowings8423,0562,7682,9403,7393,996
Other Liabilities71140258288280289
Total Liabilities1,7934,2084,2314,5155,7477,063
Fixed Assets270294301299296300
CWIP000012
Investments1671,8791,484848607427
Other Assets1,3562,0352,4463,3684,8436,334
Total Assets1,7934,2084,2314,5155,7477,063

Reserves and Borrowings Chart

Cash Flow

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity -368-383-275-822-1,245-1,155
Cash from Investing Activity 146-1,863375652206158
Cash from Financing Activity 3952,291-1871831,0711,037
Net Cash Flow17345-87133240

Free Cash Flow

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-753.00131.00147.00208.00244.00335.00

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

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Small Cap Fund69,999,9992.53629.6569,999,9992024-07-200%
ICICI Prudential Banking and Financial Services5,263,1570.6446.9569,999,9992024-07-20-92.48%
HDFC Banking and Financial Services Fund5,263,1581.3542.6169,999,9992024-07-20-92.48%
Aditya Birla Sun Life Banking And Financial Services Fund4,508,2491.3140.5569,999,9992024-07-20-93.56%
HDFC Banking and Financial Services Fund3,333,2000.9529.9869,999,9992024-07-20-95.24%
SBI Banking & Financial Services Fund3,033,1600.5527.2869,999,9992024-07-20-95.67%
SBI Retirement Benefit Fund - Aggressive Plan2,728,4201.1524.2569,999,9992024-07-20-96.1%
Tata Banking and Financial Services Fund2,356,3761.0921.269,999,9992024-07-20-96.63%
ICICI Prudential Banking and Financial Services2,198,2420.2719.7769,999,9992024-07-20-96.86%
Franklin India Smaller Companies Fund1,758,3800.1315.8269,999,9992024-07-20-97.49%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22
FaceValue10.0010.0010.00
Basic EPS (Rs.)2.351.710.81
Diluted EPS (Rs.)2.301.620.79
Cash EPS (Rs.)2.341.830.94
Book Value[Excl.RevalReserv]/Share (Rs.)25.9219.4215.95
Book Value[Incl.RevalReserv]/Share (Rs.)25.9219.4215.95
Revenue From Operations / Share (Rs.)9.508.246.56
PBDIT / Share (Rs.)6.345.513.96
PBIT / Share (Rs.)6.225.373.81
PBT / Share (Rs.)2.952.261.07
Net Profit / Share (Rs.)2.211.680.79
NP After MI And SOA / Share (Rs.)2.211.680.79
PBDIT Margin (%)66.7766.9360.31
PBIT Margin (%)65.4565.2058.08
PBT Margin (%)31.0327.4716.38
Net Profit Margin (%)23.2720.4312.19
NP After MI And SOA Margin (%)23.2720.4312.19
Return on Networth / Equity (%)8.538.665.01
Return on Capital Employeed (%)23.8526.7022.62
Return On Assets (%)3.352.601.42
Long Term Debt / Equity (X)0.000.020.03
Total Debt / Equity (X)1.442.162.28
Asset Turnover Ratio (%)0.150.140.00
Current Ratio (X)1.581.371.32
Quick Ratio (X)1.581.371.32
Interest Coverage Ratio (X)1.941.771.45
Interest Coverage Ratio (Post Tax) (X)1.681.541.29
Enterprise Value (Cr.)12280.370.000.00
EV / Net Operating Revenue (X)12.060.000.00
EV / EBITDA (X)18.050.000.00
MarketCap / Net Operating Revenue (X)8.610.000.00
Price / BV (X)3.160.000.00
Price / Net Operating Revenue (X)8.610.000.00
EarningsYield0.020.000.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 102.08

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.

Undervalued: 25.87% compared to the current price 81.1

Intrinsic Value: 139.72

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 72.28% compared to the current price 81.1

Last 5 Year EPS CAGR: 36.88%

*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 (399.33 cr) and profit (135.33 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 (2,890.17) compared to reserves (651.00), 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: 23.27%
      • 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: 23.85% (Industry Average ROCE: %)
      • 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%: 8.53% (Industry Average ROE: %)
      • 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): 1.68
      • 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: 1.58
      • 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: 36.8 (Industry average Stock P/E: )
      • 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: 1.44
      • 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

Non-Banking Financial Company (NBFC)
INDUSTRYADDRESSCONTACT
103, 1st Floor, C&B Square, Mumbai Maharashtra 400059Mr.Neeraj%20Swaroop
Chairperson%20&%20Independent%20Director
Management
NamePosition Held
Mr. Aseem DhruManaging Director & CEO
Mr. Rajesh Mannalal AgrawalIndependent Director
Ms. Surekha MarandiIndependent Director
Mr. Ravi VenkatramanIndependent Director
Mr. Koni Uttam NayakIndependent Director
Mr. John MescallNominee Director
Mr. Jonathan Tadeusz TaturNominee Director

FAQ

What is the latest fair value of SBFC Finance Ltd?

The latest fair value of SBFC Finance Ltd is ₹102.08.

What is the Market Cap of SBFC Finance Ltd?

The Market Cap of SBFC Finance Ltd is 8,714 Cr..

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

The current stock price of SBFC Finance Ltd as on 21 July 2024 is 81.1.

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 36.8.

What is the Book Value of SBFC Finance Ltd?

The Book Value of SBFC Finance Ltd is 25.9.

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 10.9 %.

What is the ROE of SBFC Finance Ltd?

The ROE of SBFC Finance Ltd is 10.5 %.

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