SBFC Finance Reports Strong Growth with 90.94% CAGR in Operating Profits

SBFC Finance, a midcap player in the finance and non-banking financial company (NBFC) sector, has showcased impressive financial performance, highlighted by a remarkable 90.94% compound annual growth rate (CAGR) in operating profits. The company has consistently demonstrated robust growth, with net sales increasing at an annual rate of 38.80%. In its latest quarterly results, SBFC Finance reported a net sales peak of Rs 314.22 crore and a record operating profit before depreciation, interest, and taxes (PBDIT) of Rs 214.33 crore.
The company has also maintained a positive trajectory, declaring favorable results for five consecutive quarters, with a net profit growth of 6.68% reported in September 2024. With a return on equity (ROE) of 10.1 and a price-to-book value ratio of 3.2, SBFC Finance appears to be fairly valued in the current market landscape. Additionally, the stock has garnered significant institutional interest, with holdings at 20.82%, indicating confidence from larger investors who typically possess advanced analytical capabilities. Despite a challenging year, where the stock returned -2.90% compared to the broader market's 16.47%, the underlying fundamentals remain strong.