ESAF Small Finance Bank Ltd - Stock Valuation and Financial Performance

BSE: 544020 | NSE: ESAFSFB | Bank - Private | Small Cap

ESAF Small Finance Bank Ltd Share Price

63.90 -0.70 -1.08%
as on 26-Feb'24 15:48

DeciZen - make an informed investing decision on ESAF Small Finance

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

ESAF Small Finance Bank stock performance -

mw4me loader
P/E Ratio (SA):
11.00
Market Cap:
3,325.5 Cr.
52-wk low:
62.1
52-wk high:
82.3

Is ESAF Small Finance Bank Ltd an attractive stock to invest in?

1. Is ESAF Small Finance Bank Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that ESAF Small Finance Bank Ltd is a average quality company.

2. Is ESAF Small Finance Bank Ltd undervalued or overvalued?

The key valuation ratios of ESAF Small Finance Bank Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is ESAF Small Finance Bank Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of ESAF Small Finance Bank Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of ESAF Small Finance:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
ESAF Small Finance Bank Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Net Interest Income (₹ Cr.)13.32825737929221,1471,8362,082
YoY Gr. Rt. %-2023.6%103.3%38.2%16.3%24.5%60.1%-
Total Income48.26991,1411,5461,7682,1483,1423,652
YoY Gr. Rt. %-1349.3%63.3%35.6%14.4%21.4%46.3%-
Adj EPS (₹ ) 00.92.14.52.31.26.75.9
YoY Gr. Rt. %-2800%142.5%110.9%-47.4%-47.9%451.6%-
BVPS (₹ )10.11120.925.330.131.33849.4
YoY Gr. Rt. %-8.6%89.7%21.3%18.7%4.1%21.5%-
To view Net Profit/Total Funds (%) Colour Rating Guide click here
Net Profit/Total Funds (%)00.71.52.310.41.60
To view Net NPA to Net Advances (%) Colour Rating Guide click here
Net NPA to Net Advances (%)0.32.70.80.63.93.91.12.2
To view Capital Adequacy Ratio (%) Colour Rating Guide click here
Capital Adequacy Ratio (%)--------

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Net Interest IncomeNA45.5%32.4%60.1%
Total IncomeNA35.1%26.7%46.3%
Adj EPSNA50.6%14.8%451.6%
BVPSNA28.1%14.5%21.5%
Share Price - - - -

Key Financial Ratios

RATIOS \ YEARSMar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Interest Earned / Total Income60.9785.4290.4391.3992.890.3390.8490.6
Margins To view Margins Colour Rating Guide click here
NIM (%)0.56.28.48.67.76.79.40
Performance Ratios To view Performance Ratios Colour Rating Guide click here
Return on Equity (%)0.38.314.619.38.7419.412.9
Liquidity Ratio To view Liquidity Ratio Colour Rating Guide click here
CASA (%)18.21013.613.719.422.821.4-

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 13.40%

Total Income has increased 26.65 CAGR in last 3 years

Net Profit has increased 14.78 CAGR in last 3 years

Net NPA to Net Advances has declined versus last 3 years average

Total income growth is good in last 4 quarters

No data to display

Latest Financials - ESAF Small Finance Bank Ltd.

Standalone Consolidated
TTM EPS (₹) 5.9 -
TTM Sales (₹ Cr.) 2,854 -
BVPS (₹.) 49.4 -
Reserves (₹ Cr.) 2,029 -
P/BV 1.31 -
PE 11.00 -
From the Market
52 Week Low / High (₹) 62.05 / 82.26
All Time Low / High (₹) 62.05 / 82.26
Market Cap (₹ Cr.) 3,325
Equity (₹ Cr.) 514.8
Face Value (₹) 10
Industry PE 19.3

Management X-Ray of ESAF Small Finance:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of ESAF Small Finance

Adj EPS (Rs.)

Total Income (Cr.)

ROE (%)

BVPS (Rs.)

Balance Sheet

(All Figures are in Crores.)

Profit And Loss

(All Figures in Cr. Adjusted EPS in Rs.)

Cash Flow

(All Figures are in Crores.)

ESAF Small Finance Bank Ltd Stock News

ESAF Small Finance Bank Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of ESAF Small Finance on 26-Feb-2024 15:48 is ₹63.90.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 26-Feb-2024 15:48 the market cap of ESAF Small Finance stood at ₹3,325.5.
The latest P/E ratio of ESAF Small Finance as of 26-Feb-2024 15:48 is 11.00.
The latest P/B ratio of ESAF Small Finance as of 26-Feb-2024 15:48 is 1.31.
The 52-week high of ESAF Small Finance is ₹82.26 and the 52-week low is ₹62.05.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of ESAF Small Finance is ₹2,854 ( Cr.) .

About ESAF Small Finance Bank Ltd

The Bank was incorporated as ‘ESAF Small Finance Bank Limited’ on May 5, 2016 at Thrissur, Kerala, as a public limited company under the Companies Act, 2013, and was granted the certificate of incorporation by the Registrar of Companies, Kerala at Ernakulam (RoC). Its Promoter, ESAF Financial Holdings Private Limited, was granted in-principle approval to establish a small finance bank (SFB), by the RBI, pursuant to its letter dated October 7, 2015. Subsequently, the bank received the final approval to carry on the SFB business in India, pursuant to a letter dated November 18, 2016 issued by the RBI. The bank commenced its business with effect from March 10, 2017 and was included in the second schedule to the RBI Act pursuant to a notification dated November 12, 2018 issued by the RBI.

The bank is a small finance bank with a focus on unbanked and under-banked customer segments, especially in rural and semiurban centres. The bank’s primary products are its advances (asset products) and deposits (liability products). The bank’s advances comprise: (a) Micro Loans, which comprises Microfinance Loans and Other Micro Loans; (b) retail loans, which includes gold loans, mortgages, personal loans, and vehicle loans; (c) MSME loans; (d) loans to financial institutions; and (e) agricultural loans. Its liability products comprise current accounts, savings accounts, term deposits and recurring deposits. Its services includes safety deposit lockers, foreign currency exchange, giving its customers access to the Bharat Bill Payment System, money transfer services and Aadhaar Seva Kendra services. It also distributes third-party life and general insurance policies and Government pension products.

The bank focuses on leveraging technology to deliver products and services and it continuously work towards improving its customers’ experience through the use of technology. It has crossed a technology milestone with the successful adoption of e-signatures for Micro Loan disbursals. It offer its customers various digital platforms, including an internet banking portal, a mobile banking platform, SMS alerts, bill payments and RuPay branded ATM cum debit cards. Its customers are also able to register for its savings accounts on a unified payment interface based mobile applications. Its account opening and loan underwriting processes have been digitalised by using tablets. It has a digitalised central credit-processing unit for its Micro Loans. Its customer on-boarding process has been predominantly digitalised for its Micro Loans. It leverages technology for underwriting and credit sanctioning for its loan products based on inputs from credit bureaus and/or its customer data analytics. 

Business area of the bank

The bank primarily focuses on expanding the banking horizon to new unbanked/underbanked area, yet it stands as a bank for all with presence in urban, semi urban, rural and rural unbanked areas. The bank offers a host of modern banking services like ATMs, Debit Cards, Safe Deposit Lockers, Internet Banking, Mobile Banking, Agent Banking, SMS Banking, RTGS, NEFT, CTS, etc. The doorstep delivery services, free video calling facility at branches and Hrudaya Fixed Deposit Scheme are some of the exclusive features offered by ESAF Small Finance Bank. As an organization, it strives for financial peace by bridging the gap between the haves and the have-nots. A unique deposit scheme of ESAF Small Finance Bank, namely Hrudaya deposit scheme, as the name suggests, stands for a social cause, through which, the Bank provides the customers an opportunity to be a part in economic development of the bottom of the pyramid. As an organization it strives for financial peace by bridging the gap between the haves and the have-nots.  

Key awards, accreditations and recognitions

2018:

  • MSME Banking Excellence Awards ‘Special Jury Award for Serving MSMEs’ by Chamber of Indian Micro Small & Medium Enterprises
  • Finalist at the 9th European Microfinance Award ‘Inclusive Finance through Technology’ and recognition for the Bank’s range of back and front end digital solutions for staff and clients alike.
  • Recognition for implementing outstanding initiatives in the category ‘Positive External Image Building’ by MFIN Microfinance Awards 2018: In Pursuit of Excellence.
  • Perform for Pride FY 2018-19 ‘Best Performing Branch - Kattapana’ under the Atal Pension Yojana by PFRDA.
  • ‘Banking & Finance Gold’ SKOCH Award for Financial Inclusion for All.

2019:

  • Dhanam ‘Kerala Bank of The Year – 2019’ award.
  • 'Banking Gold’ SKOCH Award for Access and Affordable Banking Services for Financially Underserved Areas.
  • Diversity & Inclusion Excellence Awards 2019 – first runner up under the category ‘Best Employer for Women (in Large Category)’ by ASSOCHAM India.
  • Best Performance Award 2018-19 under the SHG – Bank Linkage Programme by NABARD, Kerala Regional Office.

2020

  • ‘Global Sustainability Award 2020’ for outstanding achievements in sustainability management by the Energy and Environment Foundation.

2021:

  • Semi Finalist at the SKOCH Award 2021 in the category ‘Financial, Digital Inclusion and Education’.
  • ‘Great Place to Work’ certification for March 2021- February 2022 by the Great Place to Work Institute, India. 

2022:

  • ‘Small Finance Bank of the Year’ certification at the IBS India Banking Summit and Awards 2022.
  • ‘Rising Category: Banking’ Award at the Prestigious Brand Asia Awards presented by BARC Herald Global.
  • Financial Inclusion by Small Finance Bank’ Award by HSBC.

2023:

  • ‘Excellence in Customer Service and Product Distribution’ Award at the Eastern India Micro Finance Summit.
  • ‘Best Customer Experience Bank of the Year’ Award at the India Customer Excellence Summit and Awards 2023.

Major events and milestones

2016:

  • Incorporation of the Bank.
  • Received RBI Final Approval for commencement of banking operations.

2017:

  • Commenced banking operations.

2018:

  • Crossed 2.00 million borrowers.
  • Bank became a member of the Global Alliance for Banking on Values.
  • Received RBI approval for maintaining non-resident rupee account.
  • Inclusion of our Bank in the second schedule of the RBI Act.
  • Selected by the GoI for Atal Pension Yojana.
  • Crossed 100 Branches in aggregate.

2019:

  • Crossed 400 Branches in aggregate.
  • Banking business (advances and deposits) crossed over Rs 100,000 million.

2020:

  • Crossed 500 Branches in aggregate.

2021:

  • Banking business (advances and deposits) crossed over Rs 150,000 million.

2022:

  • Crossed a customer base of 6.00 million.
  • Gold Loan Portfolio crossed 10,000 million.
  • Opened 150 unbanked rural centres.

2023:

  • Launched Rainbow Savings Account exclusively for the transgender community.
  • Opened 700th branch.
  • Authorized to deal in foreign exchange by the RBI by virtue of the Authorized Dealer – Category I license issued by the RBI.
  • Launched WhatsApp Banking.
  • Implemented e-signature for Micro Loan disbursals.


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