ESAF Small Finance Bank Ltd (ESAFSFB) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

AU Small Finance

Ujjivan Small

Capital Small

Suryoday Small

Equitas Sma. Fin

Jana Small Finan

ESAF Small Fin

Utkarsh Small F.

Why is ESAF Small Finance Bank Ltd ?

Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 0% signifying inadequate buffers against its risk based assets

Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 0% signifying inadequate buffers against its risk based assets
Bank has not been able to control its costs efficiently with a high Cost to Income ratio of 80.70%

The company has declared Negative results for the last 7 consecutive quarters

NII(Q) Lowest at Rs 364.06 cr
INTEREST EARNED(Q) At Rs 819.82 cr has Fallen at -10.5% (vs previous 4Q average)
GROSS NPA(Q) Highest at 8.54%

With ROA of -2.2, it has a Very Expensive valuation with a 0.8 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -36.55%, its profits have fallen by -785.8%

Despite the size of the company, domestic mutual funds hold only 0% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Bank)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is ESAF Small Fin for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

ESAF Small Fin

-36.55%

-1.11

32.84%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Net Interest Income Growth (5y)

10.38%

Net Profit Growth (5y)

-223.68%

Advance to Deposit

82.66%

Capital Adequacy Ratio (Tier 1)

Gross NPA (latest)

8.54%

Gross NPA (avg)

6.57%

Coverage Ratio (avg)

55.13%

Cost to Income (avg)

66.25%

Net Interest Margin (avg)

10.41%

Operating Profit to Assets (avg)

12.05%

ROA (avg)

0.42%

Net Debt to Equity (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Price to Book Value

0.78

PEG Ratio

Dividend Yield

ROE (Latest)

-33.81%

ROA (Latest)

-2.18%

Net NPA to Book Value

39.83

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

OPERATING CF(Y)

Highest at Rs 3,176.32 Cr

PBT LESS OI(Q)

Highest at Rs -300.58 cr.

-16What is not working for the Company

NII(Q)

Lowest at Rs 364.06 cr

INTEREST EARNED(Q)

At Rs 819.82 cr has Fallen at -10.5% (vs previous 4Q average

GROSS NPA(Q)

Highest at 8.54%

DPS(Y)

Lowest at Rs 0.00

DPR(Y)

Lowest at 0.00%

NET NPA(Q)

Highest at 3.83%

Loading Valuation Snapshot...

Here's what is working for ESAF Small Fin

Operating Cash Flow - Annually

Highest at Rs 3,176.32 Cr and Grown

each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs -300.58 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Here's what is not working for ESAF Small Fin

Net Interest Income (Quarterly)

Lowest at Rs 364.06 cr and Fallen

each quarter in the last five quarters

MOJO Watch

The bank's income from core business is falling

Net Interest Income (Rs Cr)

Interest Earned - Quarterly

Lowest at Rs 819.82 cr and Fallen

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very negative

Interest Earned (Rs Cr)

Interest Earned - Quarterly

At Rs 819.82 cr has Fallen at -10.5% (vs previous 4Q average)

over average Interest Earned of the previous four quarters of Rs 916.37 Cr

MOJO Watch

Near term sales trend is very negative

Interest Earned (Rs Cr)

Gross NPA - Quarterly

Highest at 8.54%

in the last five quarters

MOJO Watch

Proportion of stressed loans given by the bank are increasing

Gross NPA (%)

Net NPA - Quarterly

Highest at 3.83%

in the last five quarters

MOJO Watch

Proportion of stressed loans given by the bank are increasing

Net NPA (%)

Dividend per Share (DPS) - Annually

Lowest at Rs 0.00

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (Rs)

Dividend Payout Ratio (DPR) - Annually

Lowest at 0.00%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)