Spandana Sphoorty Financial Ltd - Stock Valuation and Financial Performance

BSE: 542759 | NSE: SPANDANA | Finance - NBFC | Small Cap

Spandana Sphoorty Share Price

867.75 20.70 2.44%
as on 28-Mar'24 16:01

DeciZen - make an informed investing decision on Spandana Sphoorty

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

Spandana Sphoorty Financial stock performance -

mw4me loader
P/E Ratio (CD):
12.58
Market Cap:
6,006.1 Cr.
52-wk low:
481
52-wk high:
1,243.1

Is Spandana Sphoorty Financial Ltd an attractive stock to invest in?

1. Is Spandana Sphoorty Financial Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Spandana Sphoorty Financial Ltd is a average quality company.

2. Is Spandana Sphoorty Financial Ltd undervalued or overvalued?

The key valuation ratios of Spandana Sphoorty Financial Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Spandana Sphoorty Financial Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Spandana Sphoorty Financial 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 Spandana Sphoorty:

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.
Spandana Sphoorty Financial Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Operating Income (₹ Cr.)00005871,0431,4351,4831,4631,4012,216
YoY Gr. Rt. %-NANANANA77.6%37.6%3.3%-1.3%-4.2%-
Adj EPS (₹ ) 000063.252.354.722.610.11.767
YoY Gr. Rt. %-NANANANA-17.2%4.5%-58.7%-55.4%-82.8%-
BVPS (₹ )0000467.3316.2407.3425.1433.1430.3489.1
YoY Gr. Rt. %-NANANANA-32.4%28.8%4.4%1.9%-0.7%-
To view Net Profit/Total Funds (%) Colour Rating Guide click here
Net Profit/Total Funds (%)00005.67.76.620.90.20

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Net Interest IncomeNA19%-0.8%-4.2%
Adj EPSNA-51.3%-68.4%-82.8%
BVPSNA-1.6%1.9%-0.7%
Share Price - - 13.5% 75.7%

Key Financial Ratios

RATIOS \ YEARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Asset Quality Ratio To view Asset Quality Ratio Colour Rating Guide click here
Net NPA to Net Advances (%)0000000000-
Capitalization Ratio To view Capitalization Ratio Colour Rating Guide click here
Capital Adequacy Ratio (%) 0000000000-
Margins
Net Profit Margin (%)00003229.924.59.84.80.921.5
Performance Ratios To view Performance Ratios Colour Rating Guide click here
Return on Equity (%)000013.51915.65.42.40.413.7

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 14.60%

Total income growth is good in last 4 quarters

Total Income has declined 93.26 CAGR in last 3 years

Net Profit has declined -68.37 CAGR in last 3 years

Latest Financials - Spandana Sphoorty Financial Ltd.

Standalone Consolidated
TTM EPS (₹) 64.8 67
TTM Sales (₹ Cr.) 2,111 2,216
BVPS (₹.) 477.6 489.1
Reserves (₹ Cr.) 3,334 3,416
P/BV 1.76 1.72
PE 13.00 12.58
From the Market
52 Week Low / High (₹) 481.00 / 1243.10
All Time Low / High (₹) 288.75 / 1400.00
Market Cap (₹ Cr.) 6,006
Equity (₹ Cr.) 71.3
Face Value (₹) 10
Industry PE 31

Management X-Ray of Spandana Sphoorty:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.0012.3710.474.027.717.714.310.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Spandana Sphoorty

Adj EPS (Rs.)

Total Income (Cr.)

ROE (%)

BVPS (Rs.)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Income6231,5261,6791,5081,4801,863
Interest Income5871,0431,4351,4831,4631,401
Other Income 364832442617463
Expenditure 3401,0521,0611,3081,3831,846
Interest Expense 232360360425542460
Operating Expenses 105165209220310440
Provisions 3527492662532946
Exceptional Items 000000
Profit Before Tax 2834736182009718
Taxes 9516226755275
Profit After Tax 1883123521457012
Adjusted EPS (₹)63.252.354.722.610.11.7
Dividend Payout Ratio (%)0%0%0%0%0%0%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Equity Capital1,3901,8892,6262,7493,0133,099
Share Capital 306064646971
Reserves 1,3611,8302,5622,6852,9433,028
Minority Interest011220
Long Term Borrowings1,9482,7683,0165,2703,5925,883
Current Liabilities 4273327451210203
Trade Payables100000
Short term borrowings005000
Other Liabilities-10-50750
Total Liabilities 3,3804,7325,9708,4726,8929,186

Assets

Non Current Asset 3,1044,3055,5196,9925,5758,042
Loan Asset 3,0904,2684,9776,9335,5187,760
Other Non Current Asset 15375425956282
Current Asset 2764274511,4801,3171,143
Current Investment000000
Other Current Asset2764274511,4801,3171,143
Total Assets 3,3804,7325,9708,4726,8929,186

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity -1,855-573-35-1,754863-2,171
Cash Flow From Investing Activity -4-33-48748236-175
Cash Flow From Financing Activity 1,6736504342,348-1,3072,433
Net Cash Flow -18644-891,076-40886
PARTICULARSMar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Operational & Financial Ratios

EPS (₹)63525523102
DPS (₹)000000
BVPS (₹)467316407425433430

Performance Ratios

ROA (%)5.67.76.62.00.90.2
ROE (%)13.519.015.65.42.40.4
ROCE (%)13.819.418.69.18.56.0

Valuation Parameters

Price/Book(x)0.00.01.41.40.81.2

Spandana Sphoorty Financial Ltd Stock News

Spandana Sphoorty Financial Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Spandana Sphoorty on 28-Mar-2024 16:01 is ₹867.8.
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 28-Mar-2024 16:01 the market cap of Spandana Sphoorty stood at ₹6,006.1.
The latest P/E ratio of Spandana Sphoorty as of 28-Mar-2024 16:01 is 13.00.
The latest P/B ratio of Spandana Sphoorty as of 28-Mar-2024 16:01 is 1.76.
The 52-week high of Spandana Sphoorty is ₹1,243.1 and the 52-week low is ₹481.0.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Spandana Sphoorty is ₹2,111 ( Cr.) .

About Spandana Sphoorty Financial Ltd

The Company was incorporated as Spandana Sphoorty Innovative Financial Services (SSIFSL) on March 10, 2003 at Hyderabad, Andhra Pradesh, India as a public limited company under the Companies Act, 1956. A certificate of commencement of business was issued to SSIFSL on November 11, 2003 by the Registrar of Companies, Andhra Pradesh and Telangana at Hyderabad (RoC). On October 16, 2004, the Reserve Bank of India (RBI) granted a certificate of registration bearing registration no. N-09.00414 to company, for the registration of company as a non-deposit accepting non-banking financial company (NBFC) under Section 45IA of the Reserve Bank of India Act, 1934. Subsequently, pursuant to a special resolution dated November 26, 2007 passed by shareholders, the name of company was changed to Spandana Sphoorty Financial. Pursuant to a letter dated December 26, 2007, the RBI granted its no objection to the change of name of company to Spandana Sphoorty Financial and a fresh certificate of incorporation consequent to change of name was issued by the RoC to Company on January 3, 2008. Further, a fresh certificate of registration bearing registration no. N-09.00414 pursuant to the change of name was issued by the RBI on January 11, 2008. The Company was granted NBFC - Microfinance Institution (NBFC-MFI) status by the RBI with effect from April 13, 2015 and a modified certificate of registration bearing registration no. N-09.00414 was issued by the RBI to this effect.

Business area of the company

The company is a leading, rural focused NBFC-MFI with a geographically diversified presence in India. It offers income generation loans under the joint liability group model, predominantly to women from low-income households in Rural Areas.

Products

  • Abhilasha (JLG Loans): Abhilasha stands for “Aspiration”. This unique loan is designed especially for low-income households
  • Loans Against Property (LAP): Sometimes big ideas need small help, thus it has designed Loan Against Property known as LAP.
  • Personal Loans: These Loans are given exclusively to Business development, Purchase of livestock, house construction/renovation or any other emergency needs.
  • Gold Loans (Keertana): Gold Loans are given against the mortgage of Jewellery. Indian housewives hold 11% of the world's gold.
  • Interim Loans: the company introduced Interim loans to assist borrowers who are struggling to meet short-term liquidity requirements.

Awards

  • 2016: MFIN-Micrometer of March 2016
  • 2016: Brand Excellence (B.E.) Awards.
  • 2016: “Women Entrepreneurship Award, 2016” by CMO Asia, Singapore.
  • 2016: The Best Microfinancial Company of the Year - 2016
  • 2016: Best Microfinance Institution in Southern India
  • 2016: Best Employer Brands Award
  • 2016: Winner of Outstanding Woman Leadership Award 2016
  • 2016: Women Leadership Award in Banking & Finance
  • 2016: Women Leadership Award for Excellence in Banking & Finance
  • 2016: MSME Banking & NBFC Excellence Awards-2016
  • 2017: The Most Trusted Micro Financial Company of the year 2017
  • 2017: CEO of the year 2017
  • 2017: Women Achiever of the Year 2017
  • 2017: Pride of Telangana Award 2017 (for Women Leadership)
  • 2017: Telangana’s Best Employer Brand Award
  • 2018: Awarded ‘The Best Micro Finance Company of the Year’ at the Golden Star Awards 2018 by APS Research and Media.
  • 2018: Awarded ‘The Most Trusted Micro Financial Company of the Year (India)’ at the National Icon Awards (2018-2019) by APS Research and Media.
  • 2020: India's Top 100 Women in Finance 2020
  • 2020: India's A list for excellence in Entrepreneurship by newsX

Milestones

  • 1997-98: Started operations as SRUDO, an NGO in Guntur, Andhra Pradesh.
  • 1997-98: Offered multiple community welfare programs with microfinance at the core.
  • 1998-99: Achieved breakeven in the first full year of operations; a breakthrough for any contemporary microfinance program.
  • 2002-03: Incorporated Spandana Sphoorty Innovative Financial Services Limited (SSIFSL) on March 10, 2003 (later abridged to Spandana Sphoorty Financial Limited).
  • 2002-03: SRUDO’s operations became the largest microfinance program in India.
  • 2005-06: Conducted business under the NBFC licensed company setup (SSIFSL)
  • 2005-06: Crossed cumulative disbursements of Rs 10,000 million.
  • 2010-11: Curbed onerously by AP-MFI (regulation of money lending) Act, leading to large scale defaults in the State of Andhra Pradesh, which constituted 51% of the Portfolio; 14,000 on-roll staff.
  • 2010-11: Opted for Corporate Debt Restructuring (CDR) with lenders in March 2011.
  • 2011-12: Signed CDR agreements with a deep restructuring of debt with tenor extension and part conversion to OCCRPS.
  • 2013-14: Resumed operations in AP on a low key with help from the interim relief from Supreme Court; also helped improve overdue collections.
  • 2016-17: Exited CDR Mechanism at the year-end; Raised Rs 5,140 million Equity Capital from Kangchenjunga and Kedaara AIF-1; Infused a primary Rs 3,000 million into Spandana; Set the stage for growth in coming years with capital buffer.
  • 2016-17: Experienced sectoral impact on collections of MFIs following demonetization in November 2016, impacting the borrower segment.
  • 2018-19: Adopted IND-AS.
  • 2018-19: Witnessed strong growth and good asset quality despite multiple events like liquidity squeeze, floods, and state elections, among others.
  • 2018-19: Acquired 95.97% of the equity shares of Criss Financial Holdings Limited (Criss) in December 2018 and further subscribed to issue of fresh equity shares of Criss, resulting into Spandana holding 97.54% stake in the entity.
  • 2019-20: Listed on NSE and BSE on August 19, 2019.
  • 2019-20: Grew the number of borrowers to 2.6 million.
  • 2019-20: Became the country’s most profitable MFI in terms of PAT and PBT.
  • 2019-20: Positioned as the industry leader in terms of capital adequacy, with a CAR of 47%.
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