ESAF Small Finance Bank's Q1 Financial Results Show Mixed Performance

ESAF Small Finance Bank, a smallcap private bank, has recently declared its financial results for the quarter ending June 2024. According to the latest report, the bank has seen a negative financial performance with a score of -10, falling from -8 in the last three months.

Despite this, there are some positive aspects to ESAF Small Finance Bank's financials. The bank has recorded the highest interest earned in the last five quarters, with a growth in each quarter. This indicates a positive trend in sales for the bank.

However, there are also some concerning factors in the bank's financials. The profit before tax (PBT) has fallen by -194.3% compared to the average PBT of the previous four quarters. The same trend is seen in the profit after tax (PAT), which has fallen by -41.0% compared to the average PAT of the previous four quarters.

Additionally, the gross non-performing assets (NPA) and net NPA have both increased in the last five quarters, indicating a rise in the proportion of stressed loans given by the bank.

Moreover, the non-operating income of the bank is 135.72% of the PBT, which suggests that the bank's income from non-business activities is high and may not be a sustainable business model.

Based on these financial results, MarketsMOJO has given a 'Strong Sell' call for ESAF Small Finance Bank's stock. Investors should carefully consider these factors before making any investment decisions.