Why is ESAF Small Fin falling/rising?

Sep 23 2025 11:52 PM IST
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As of 23-Sep, ESAF Small Finance Bank Ltd's stock price is 29.48, reflecting a slight increase of 0.55%. Despite today's uptick, the stock has underperformed over the past year with a -40.72% return and significant financial weaknesses, including a 0% Capital Adequacy Ratio.
As of 23-Sep, ESAF Small Finance Bank Ltd is experiencing a slight increase in its stock price, currently at 29.48, with a change of 0.16, representing a 0.55% rise. Today's price summary indicates that the stock has outperformed its sector by 0.55%. However, the stock has shown a negative performance over the past week and month, with declines of 1.86% and 0.47%, respectively. The stock's long-term performance is concerning, as it has generated a return of -40.72% over the past year and has declared negative results for the last six consecutive quarters. The bank's weak capital buffers, indicated by a Capital Adequacy Ratio of 0%, and a high Cost to Income ratio of 79.65% further exacerbate its financial instability, contributing to its poor long-term growth prospects.

In the broader market context, the stock's recent performance contrasts with the benchmark, as it has underperformed the Sensex, which has gained 0.98% over the past month. Despite a slight uptick today, the stock's overall trajectory remains negative, with significant declines over the past year and a lack of investor confidence, as evidenced by domestic mutual funds holding only 0% of the company. The rising investor participation, indicated by an 85.06% increase in delivery volume, may provide some short-term support, but the fundamental weaknesses in the company's financial health and long-term growth potential continue to overshadow any immediate gains.
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