Check Before You Invest : Spandana Sphoorty Financial Ltd

Q: Which industry/sub-sector does Spandana Sphoorty Financial Ltd belong to?

Spandana Sphoorty Financial Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q: Is Spandana Sphoorty Financial Ltd a good quality company?

Spandana Sphoorty Financial Ltd is a average quality company, based on a somewhat consistent multi-year financial track record. This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q: Is Spandana Sphoorty Financial Ltd undervalued or overvalued?

Spandana Sphoorty Financial Ltd appears Fair, as its key valuation ratios are in line with their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: -, Historic Median: 12.79. Price to Book, Current: 1.19, Historic Median: 1.07. Price to Sales, Current: 2.48, Historic Median: 1.83. EV to EBITDA, Current: -7.56, Historic Median: 7.28

Q: Is Spandana Sphoorty Financial Ltd a good buy now?

Spandana Sphoorty Financial Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Total Income growth of Spandana Sphoorty Financial Ltd?

Spandana Sphoorty Financial Ltd Operating Income growth is -2.83% for FY-2025, which is below its 5-year CAGR of 10.41%, indicating slower growth.

Q: Return on Assets of Spandana Sphoorty Financial Ltd?

Spandana Sphoorty Financial Ltd Return on Asset is -9.7%, which is below its 5-year historical median of 0.9%, indicating deteriorated earnings on assets. Efficiency & Key Metrics. NPM (%), Current: -43.95, Historic Median: 4.77. PPOP (%), Current: -29.47, Historic Median: -22.25. RoA (%), Current: -9.7, Historic Median: 0.9

Q: Return on Equity (ROE) of Spandana Sphoorty Financial Ltd?

Spandana Sphoorty Financial Ltd Return on Equity is -33.7% for FY-2025, which is below its 5-year historical median of 2.4%, indicating the business is making worse use of its shareholders capital.

Q: Pre-provisioning operating profit margin of Spandana Sphoorty Financial Ltd?

Spandana Sphoorty Financial Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -29.47% for FY-2025, which is below its 5-year median(-22.25%), indicating decreasing margins.

Q: Net Profit Margin of Spandana Sphoorty Financial Ltd?

Spandana Sphoorty Financial Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is -43.95% for FY-2025, which is below its 5-year median( 4.77%), indicating decreasing margins.

Q: Does its ROIC exceed its WACC?

Spandana Sphoorty Financial Ltd return on invested capital (ROIC) is -3.56% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

Check Before You Invest : Spandana Sphoorty Financial Ltd

BSE: 542759 NSE: SPANDANA ISIN: INE572J01011

| Sector: BFSI | Industry: Finance - NBFC

Snapshot

Q.1 Which industry/sub-sector does Spandana Sphoorty Financial Ltd belong to?

Spandana Sphoorty Financial Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q.2 Is Spandana Sphoorty Financial Ltd a good quality company?

Spandana Sphoorty Financial Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q.3 Is Spandana Sphoorty Financial Ltd undervalued or overvalued?

Spandana Sphoorty Financial Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	-	12.79
Price to Book	1.19	1.07
Price to Sales	2.48	1.83
EV to EBITDA	-7.56	7.28

Q.4 Is Spandana Sphoorty Financial Ltd a good buy now?

Spandana Sphoorty Financial Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Total Income growth, NPM, PPOP, RoA and RoE compared to its last 5-year median.
How efficiently has it grown and managed operations?
By checking its Total Asset growth.
How strong is its Capital position and Asset Quality?
By checking its Capital Adequacy Ratio (CAR), GNPA and NNPA.

A: What are the trends in income and profitability?

Q.1 Total Income growth of Spandana Sphoorty Financial Ltd?

Spandana Sphoorty Financial Ltd Operating Income growth is -2.83% for FY-2025, which is below its 5-year CAGR of 10.41%, indicating slower growth.

Q.2 Return on Assets of Spandana Sphoorty Financial Ltd?

Spandana Sphoorty Financial Ltd Return on Asset is -9.7%, which is below its 5-year historical median of 0.9%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NPM (%)	-43.95	4.77
PPOP (%)	-29.47	-22.25
RoA (%)	-9.7	0.9

Q.3 Return on Equity (ROE) of Spandana Sphoorty Financial Ltd?

Spandana Sphoorty Financial Ltd Return on Equity is -33.7% for FY-2025, which is below its 5-year historical median of 2.4%, indicating the business is making worse use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Spandana Sphoorty Financial Ltd?

Spandana Sphoorty Financial Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -29.47% for FY-2025, which is below its 5-year median(-22.25%), indicating decreasing margins.

Q.5 Net Profit Margin of Spandana Sphoorty Financial Ltd?

Spandana Sphoorty Financial Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is -43.95% for FY-2025, which is below its 5-year median( 4.77%), indicating decreasing margins.

Q.6 Does its ROIC exceed its WACC?

Spandana Sphoorty Financial Ltd return on invested capital (ROIC) is -3.56% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

B: Does the bank grow efficiently and manage its operating costs?

Q.7 Total Asset growth of Spandana Sphoorty Financial Ltd?

Spandana Sphoorty Financial Ltd Total Asset growth is -39.48% for FY-2025, which is below its 5-year CAGR of 6.08%, indicating slower growth.

C: How strong is the bank’s capital position and asset quality?

Q.8 Capital Adequacy ratio of Spandana Sphoorty Financial Ltd?

Spandana Sphoorty Financial Ltd Capital Adequacy ratio (CAR) is 36.31% for FY-2025, which is above the regulatory requirement of 15%, indicating strong capital position.

Q.9 Asset Quality of Spandana Sphoorty Financial Ltd?

Spandana Sphoorty Financial Ltd Gross Non-Performing Assets, which are loans overdue by more than 90 days, is 5.63% for FY-2025, which is in line with its 5-year median 5.60%, while Net Non-Performing Assets, which is GNPA minus provisions made for bad loans is 1.16% which is in line with its 5-year median( 1.16%), indicating stable asset quality.

Ownership & governance

D: Promoter shareholding and pledge status of Spandana Sphoorty Financial Ltd?

Q.1 Promoter shareholding and pledge status of Spandana Sphoorty Financial Ltd?

Promoters hold 48.16% of the Spandana Sphoorty Financial Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Spandana Sphoorty Financial Ltd performance compare with that of its Peers?

Q.1 AUM Growth of Spandana Sphoorty Financial Ltd vs Industry Peers?

Spandana Sphoorty Financial Ltd AUM CAGR is 6.08%, compared to the 5-year industry median CAGR of 9.71%, indicating slower growth and losing its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Spandana Sphoorty Financial Ltd vs industry peers

Spandana Sphoorty Financial Ltd profit metrics are below the industry median level of 4.76%, indicating weaker profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM (%)	-43.95	12.87
PPOP (%)	-29.47	-
RoA (%)	-9.7	1.4

Q.3 Operating efficiency of Spandana Sphoorty Financial Ltd vs industry peers?

Spandana Sphoorty Financial Ltd ROCE (8.5) is above the industry median of (4.15); while the current ROE (2.4) are in line with than the 5-year average Industry ROE (2.3). This shows that the business is positioned in the top quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM (%)	-43.95	12.87
PPOP (%)	-29.47	-
RoA (%)	-9.7	1.4
ROCE (%)	-4.1	4.15
ROE (%)	-33.7	2.3

Valuation & price assessment

Q.1 Stock return of Spandana Sphoorty Financial Ltd over the last decade?

Over the last 5 years, the stock has delivered a CAGR of -13% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-13%	-22.6%	15.9%

Q.2 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	-	12.79	29.12
Price to Book	1.19	1.07	1.11
Price to Sales	2.48	1.83	9.10
EV to EBITDA	-7.56	7.28	11.77

Q.3 Valuation ratios of Spandana Sphoorty Financial Ltd vs historical and industry averages?

The current Price-to-Book (P/B) ratio of 1.19 is higher than its historical median of 1.07, indicating that the stock is trading above its historical average valuation.

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Check Before You Invest : Spandana Sphoorty Financial Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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