SBFC - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | SBFC | Market Cap | 10,213 Cr. | Current Price | 92.3 ₹ | High / Low | 123 ₹ |
| Stock P/E | 22.6 | Book Value | 33.7 ₹ | Dividend Yield | 0.00 % | ROCE | 11.8 % |
| ROE | 13.0 % | Face Value | 10.0 ₹ | DMA 50 | 93.0 ₹ | DMA 200 | 98.4 ₹ |
| Chg in FII Hold | -0.67 % | Chg in DII Hold | 2.44 % | PAT Qtr | 123 Cr. | PAT Prev Qtr | 118 Cr. |
| RSI | 48.8 | MACD | 1.26 | Volume | 11,94,992 | Avg Vol 1Wk | 20,08,943 |
| Low price | 79.6 ₹ | High price | 123 ₹ | PEG Ratio | 0.51 | Debt to equity | 1.92 |
| 52w Index | 29.3 % | Qtr Profit Var | 30.0 % | EPS | 4.07 ₹ | Industry PE | 18.2 |
📊 SBFC shows moderate fundamentals with ROE (13.0%) and ROCE (11.8%), reflecting decent efficiency. EPS of ₹4.07 supports earnings visibility, and quarterly PAT growth (+30%) highlights momentum. Valuations are slightly premium with P/E (22.6) vs industry average (18.2), though PEG ratio (0.51) suggests growth is fairly priced. Debt-to-equity ratio (1.92) is high, typical for NBFCs, but adds leverage risk. Dividend yield is 0%, limiting income appeal. Technicals show neutral momentum with RSI (48.8) and MACD positive (1.26).
💡 Ideal Entry Price Zone: ₹88 – ₹92 (near DMA 50 support and valuation comfort).
⏳ Exit Strategy / Holding Period: Long-term investors can hold for 3–5 years, benefiting from growth in retail lending. Partial profit booking is advisable near ₹115–₹120 (resistance zone). Sustained holding depends on ROE improvement and debt management.
✅ Positive
- ROE (13.0%) and ROCE (11.8%) show decent efficiency.
- Quarterly PAT growth (+30%) highlights earnings momentum.
- DII holdings increased (+2.44%), showing strong domestic institutional support.
- PEG ratio (0.51) indicates growth is reasonably priced.
⚠️ Limitation
- High debt-to-equity ratio (1.92) adds leverage risk.
- Dividend yield is 0%, limiting income appeal.
- Valuations slightly premium with P/E (22.6) vs industry average (18.2).
- FII holdings reduced (-0.67%).
📉 Company Negative News
- High leverage raises concerns in volatile credit cycles.
- Institutional outflow from FIIs (-0.67%).
📈 Company Positive News
- Quarterly PAT improved (₹123 Cr vs ₹118 Cr).
- DII inflows (+2.44%) reflect strong domestic confidence.
- MACD positive (1.26) indicates short-term bullish momentum.
🏭 Industry
- Industry P/E: 18.2, showing SBFC trades at a slight premium.
- NBFC sector supported by retail credit demand and financial inclusion initiatives.
🔎 Conclusion
SBFC is a moderately strong NBFC with decent efficiency and earnings momentum, but high leverage and premium valuations limit upside. New investors should wait for entry around ₹88–₹92 for safety. Existing holders can maintain a 3–5 year horizon, with partial profit booking near ₹115–₹120. Long-term holding is advisable only if ROE improves and debt levels are managed effectively.