ESAF Small Fin

Why is ESAF Small Finance Bank Ltd falling/rising?

As of 11-Jun, ESAF Small Finance Bank Ltd's stock price is at 26.58, reflecting a 2.67% decline. The stock has underperformed significantly over various time frames, with a 1-month drop of 13.59% and a 1-year decline of 21.13%, driven by weak financial ratios and negative market sentiment.

As of 11-Jun, ESAF Small Finance Bank Ltd's stock price is falling, currently at 26.58, which reflects a decrease of 0.73 or 2.67%. This decline is part of a broader trend, as the stock has underperformed the sector by 2.81% today and has experienced consecutive falls over the last two days, totaling a decline of 2.66% in that period. <BR><BR>The stock's performance over various time frames also indicates a significant downturn, with a 1-month decline of 13.59% and a 1-year drop of 21.13%, compared to the Sensex which has only fallen by 10.52% in the same period. The stock's moving averages show that it is currently lower than the 5-day, 20-day, and 200-day moving averages, suggesting a bearish trend.<BR><BR>Several negative factors contribute to this decline. The bank has a weak Capital Adequacy Ratio of 0%, indicating inadequate buffers against risk-based assets, and a high Cost to Income ratio of 71.64%, which suggests inefficiencies in cost management. Additionally, the stock has a Return on Assets (ROA) of -0.5 and is trading at a Price to Book Value of 0.8, reflecting an expensive valuation relative to its performance. <BR><BR>Despite some positive results, such as a growth in interest and positive quarterly results, the overall sentiment remains negative, particularly as domestic mutual funds hold no stake in the company, which may indicate a lack of confidence in its current valuation or business prospects. This combination of factors has led to the stock's continued decline.

What does ESAF Small Fin do?

ESAF Small Finance Bank Ltd provides financial services to underserved populations in India, having commenced operations in March 2017. As of March 2026, it reported net sales of ₹995.08 crore and a net profit of ₹24 crore, with a market capitalization of ₹1,414 crore.

Overview:<BR>ESAF Small Finance Bank Ltd operates in the banking sector as a micro-cap company, providing financial services primarily to underserved segments of the population.<BR><BR>History:<BR>Incorporated on May 5, 2016, in Thrissur, Kerala, ESAF Small Finance Bank received its license to operate as a Small Finance Bank from the Reserve Bank of India on November 18, 2016, and commenced banking operations on March 10, 2017. The bank was designated as a Schedule Bank effective November 12, 2018. The latest quarterly results reported are for March 2026.<BR><BR>Financial Snapshot:<BR>Most recent Net Sales: 995.08 Cr (Quarterly Results - Mar 2026)<BR>Most recent Net Profit: 24 Cr (Quarterly Results - Mar 2026)<BR>Market-cap value: INR 1,414 Cr (Micro Cap)<BR><BR>Key Metrics:<BR>P/E: N/A<BR>Industry P/E: N/A<BR>Dividend Yield: 0.00%<BR>Debt-Equity: N/A<BR>ROE: N/A<BR>Price-to-Book: N/A<BR><BR>Contact Details:<BR>Address: Bldg. # VII/83/8 ESAF Bhavan, Tri-Palakkad N.Hiway. Mannuthy Trissur Kerala : 680651<BR>Tel: +91 487 7123 907<BR>Email: investor.relations@esafbank.com<BR>Website: http://www.esafbank.com

Which are the latest news on ESAF Small Fin?

How big is ESAF Small Fin?

As of 10th June, ESAF Small Finance Bank Ltd has a market capitalization of 1,414.00 Cr and reported a net loss of 166.40 Cr over the latest four quarters, with total assets of 27,178.27 Cr.

As of 10th June, <BR><BR>Market Cap: ESAF Small Finance Bank Ltd has a market capitalization of 1,414.00 Cr and is classified as a Micro Cap.<BR><BR>Recent Quarterly Performance: The company reported Net Sales of 0.00 Cr for the latest 0 quarters, indicating no valid data found for summing. The Net Profit for the latest 4 quarters is a loss of 166.40 Cr.<BR><BR>Balance Sheet Snapshot: The reporting period for the latest annual data is March 2025. Shareholder's Funds are valued at 1,949.05 Cr, while Total Assets amount to 27,178.27 Cr.

Who are in the management team of ESAF Small Fin?

The management team of ESAF Small Fin includes K P Thomas (Managing Director & CEO), Ravimohan Periyakavil Ramakrishnan (Part Time Chairman), and several independent directors: V A Joseph, K Thomas Jacob, Vinod Vijayalekshmi Vasudevan, V Ravi, and Kolasserif Chandramohanan Raniani, along with nominees John Samuel and Ajayan Mangalath Gopalakrishnan Nair. This diverse team brings a wealth of experience to the company.

The management team of ESAF Small Fin includes the following individuals:<BR><BR>1. **K P Thomas** - Managing Director & CEO<BR>2. **Ravimohan Periyakavil Ramakrishnan** - Part Time Chairman<BR>3. **V A Joseph** - Independent Director<BR>4. **K Thomas Jacob** - Independent Director<BR>5. **Vinod Vijayalekshmi Vasudevan** - Independent Director<BR>6. **V Ravi** - Independent Director<BR>7. **Kolasserif Chandramohanan Raniani** - Independent Director<BR>8. **John Samuel** - Nominee<BR>9. **Ajayan Mangalath Gopalakrishnan Nair** - Nominee<BR><BR>This team brings a diverse set of experiences and expertise to the company.

Who are the peers of the ESAF Small Fin?

ESAF Small Fin's peers include AU Small Finance, Ujjivan Small, Equitas Small Fin, Jana Small Finance, Utkarsh Small Finance, Suryoday Small, and Capital Small. AU Small Finance leads in management quality and growth, while ESAF Small Fin has a 1-year return of -19.88%, better than Utkarsh Small Finance's -50.06%.

Peers: The peers of ESAF Small Fin are AU Small Finance, Ujjivan Small, Equitas Sma. Fin, Jana Small Finan, Utkarsh Small F., Suryoday Small, and Capital Small.<BR><BR>Quality Snapshot: Excellent management risk is observed at AU Small Finance, while Good management risk is found at Ujjivan Small, Equitas Sma. Fin, Jana Small Finan, and Suryoday Small, and the rest have Average management risk. Excellent growth is seen at AU Small Finance, Ujjivan Small, Jana Small Finan, Suryoday Small, and Capital Small, while Average growth is found at Equitas Sma. Fin and ESAF Small Fin, and Below Average growth is noted at Utkarsh Small F. The Capital Structure is Excellent for AU Small Finance, Ujjivan Small, Equitas Sma. Fin, and Suryoday Small, while Below Average is observed at Jana Small Finan, ESAF Small Fin, and Capital Small, and the rest have Average Capital Structure.<BR><BR>Return Snapshot: The peer with the highest 1-year return is AU Small Finance at 25.00%, while Utkarsh Small F. has the lowest at -50.06%. ESAF Small Fin's 1-year return is -19.88%, which is higher than Utkarsh Small F. but lower than all other peers. Additionally, Utkarsh Small F. and Jana Small Finan have negative six-month returns.

Should I buy, sell or hold ESAF Small Finance Bank Ltd?

Are ESAF Small Finance Bank Ltd latest results good or bad?

ESAF Small Finance Bank Ltd's latest results show a significant net profit increase of 230.20% and improved asset quality, but concerns remain due to reliance on reduced provisions and a negative return on equity of -21.34%. While there are signs of recovery, the bank still faces substantial structural challenges, warranting cautious investor consideration.

ESAF Small Finance Bank Ltd's latest results present a mixed picture. On one hand, the bank reported a significant quarter-on-quarter net profit increase of 230.20%, reaching ₹23.51 crores, which is a positive turnaround after experiencing cumulative losses in the previous three quarters. Additionally, net interest income also saw a healthy growth of 19.76% to ₹517.75 crores, indicating improved lending momentum.<BR><BR>Moreover, there was a notable improvement in asset quality, with the gross non-performing asset (NPA) ratio declining to 5.41% from 5.64%, and the net NPA ratio dropping to 1.77%, the lowest in seven quarters. This suggests that the bank is making progress in managing its asset quality challenges.<BR><BR>However, despite these positive developments, there are significant concerns. The bank's profitability remains heavily reliant on a reduction in provisions, which, while decreased, still consumed a large portion of operating profit. The overall financial health is still fragile, as evidenced by the negative return on equity of -21.34% and the absence of disclosed capital adequacy ratios, raising regulatory compliance questions.<BR><BR>In summary, while there are signs of recovery and operational improvement, the sustainability of this turnaround is uncertain, and the bank continues to face substantial structural challenges. Investors should approach with caution, considering both the recent positive trends and the underlying issues that remain.

When is the next results date for ESAF Small Finance Bank Ltd?

The next results date for ESAF Small Finance Bank Ltd is January 30, 2026.

The next results date for ESAF Small Finance Bank Ltd is scheduled for January 30, 2026.

How has been the historical performance of ESAF Small Fin?

ESAF Small Fin has shown significant growth in interest earned and total income from Mar'21 to Mar'25, but faced a downturn in profitability, reporting a profit before tax of -692.97 Cr in Mar'25 compared to a profit of 570.41 Cr in Mar'24. Despite expanding its asset base, the company struggles with maintaining profitability.

Answer:<BR>The historical performance of ESAF Small Fin shows significant growth in interest earned and total income over the years, although recent results indicate a downturn in profitability.<BR><BR>Breakdown:<BR>ESAF Small Fin's interest earned increased from 1,641.17 Cr in Mar'21 to 3,857.53 Cr in Mar'25, reflecting a strong upward trend. Total income also rose significantly from 1,768.42 Cr in Mar'21 to 4,329.30 Cr in Mar'25. However, net interest income peaked at 2,369.80 Cr in Mar'24 before declining to 2,046.85 Cr in Mar'25. Despite the growth in income, the company reported a profit before tax of -692.97 Cr in Mar'25, a stark contrast to the profit of 570.41 Cr in Mar'24. This decline in profitability is further highlighted by a negative profit after tax of -521.39 Cr in Mar'25, compared to a profit of 425.57 Cr in Mar'24. The company's total assets grew from 12,338.65 Cr in Mar'21 to 27,178.27 Cr in Mar'25, while total liabilities also increased from 12,338.65 Cr to 27,178.29 Cr in the same period. Cash flow showed volatility, with a net increase in cash and cash equivalents of 653.00 Cr in Mar'24, following a decrease of 744.00 Cr in Mar'23. Overall, while ESAF Small Fin has expanded its income and asset base, it faces challenges in maintaining profitability in recent periods.

Is ESAF Small Fin technically bullish or bearish?

As of 28 October 2025, ESAF Small Fin's technical trend has shifted to bearish, supported by bearish signals from Bollinger Bands and moving averages, despite a mildly bullish weekly MACD.

As of 28 October 2025, the technical trend has changed from mildly bearish to bearish. The current stance is bearish, with moderate strength indicated by several factors. The weekly MACD is mildly bullish, but this is overshadowed by bearish signals from the Bollinger Bands and moving averages, both of which are bearish on the daily timeframe. The KST and Dow Theory also indicate a bearish outlook on the weekly basis, while the OBV shows a mildly bearish trend on the monthly. Overall, the combination of these indicators suggests a bearish sentiment for ESAF Small Fin.

Is ESAF Small Fin overvalued or undervalued?

As of August 6, 2025, ESAF Small Finance is considered very expensive and overvalued with a negative PE ratio of -3.37, a price-to-book value of 0.80, and a significant net NPA to book value of 27.74%, reflecting poor financial health and a year-to-date stock performance decline of 27.93%.

As of 6 August 2025, the valuation grade for ESAF Small Finance has moved from attractive to very expensive, indicating a significant shift in its market perception. The company is currently overvalued, with a PE ratio of -3.37, a price-to-book value of 0.80, and a PEG ratio of 0.00. These ratios suggest that the company's earnings are not only negative but also that it is trading below its book value, which raises concerns about its financial health.<BR><BR>In comparison to its peers, ESAF Small Finance stands out with its negative PE ratio, while HDFC Bank and ICICI Bank are considered expensive with PE ratios of 21.95 and 21.06, respectively. Additionally, Kotak Mahindra Bank is categorized as very expensive with a PE ratio of 29.51. The notable outlier of ESAF's net NPA to book value at 27.74% further underscores the challenges it faces. Recent stock performance has been poor, with a year-to-date return of -27.93%, contrasting sharply with the Sensex's gain of 3.08%, reinforcing the notion that ESAF Small Finance is currently overvalued.

Who are the top shareholders of the ESAF Small Fin?

The top shareholders of ESAF Small Fin are Esaf Financial Holdings Private Limited with 52.88%, followed by public shareholder Yusuffali Musaliam Veettil Abdul Kader at 4.49%, and individual investors holding 16.17%. There are no pledged promoter holdings or mutual fund schemes associated with the company.

The top shareholders of ESAF Small Fin include Esaf Financial Holdings Private Limited, which holds the largest stake at 52.88%. Other significant shareholders include Yusuffali Musaliam Veettil Abdul Kader, who is the highest public shareholder with a holding of 4.49%. Additionally, individual investors collectively hold 16.17% of the company's shares. There are also 7 foreign institutional investors (FIIs) that hold a combined 0.27% of the shares. Notably, there are no pledged promoter holdings or mutual fund schemes involved with the company.

Has ESAF Small Fin declared dividend?

Yes, ESAF Small Finance Bank Ltd has declared a 7% dividend, amounting to ₹0.7 per share, with an ex-date of August 7, 2024. However, total returns over various periods show significant price declines, particularly a -22.86% return over the last 6 months.

ESAF Small Finance Bank Ltd has declared a 7% dividend.<BR><BR>Dividend Details:<BR>- Percentage announced: 7%<BR>- Amount per share: 0.7<BR>- Ex-date: 07 Aug 24<BR><BR>Dividend Yield: 2.18%.<BR><BR>Total Returns by Period:<BR>Over the 6-month period, the price return was -22.86%, with a dividend return of 0%, resulting in a total return of -22.86%.<BR><BR>For the 1-year period, the price return was -39.11%, the dividend return was 1.32%, leading to a total return of -37.79%.<BR><BR>In the 2-year period, there was no price return, no dividend return, and thus a total return of 0.0%.<BR><BR>Over the 3-year period, the price return was 0%, with no dividend return, resulting in a total return of 0.0%.<BR><BR>For the 4-year period, the price return remained at 0%, with no dividend return, leading to a total return of 0.0%.<BR><BR>In the 5-year period, there was no change in price return or dividend return, resulting in a total return of 0.0%.<BR><BR>Overall, while ESAF Small Finance Bank has declared a dividend, the total returns over various periods indicate significant price declines, particularly in the short term, with minimal contributions from dividends.