SBFC Finance Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

SBFC Finance Ltd trades at ₹94.1, in a downtrend and 25 weeks into that stage. That is −1.9% against its own 200-day average. It sits at 35% of a 52-week range of ₹83 to ₹115. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 1 straight week.

Today the stock is in a downtrend — week 25 of stage 4, confirmed. At ₹94.1 it trades −1.9% versus its 200-day average and sits at 35% of its 52-week range (₹83–₹115).

Against the market, two honest reads. Cumulative: over the last 2.9 years the stock moved +7% while the NIFTY 500 moved +38% — behind the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 1 straight week — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: the P/BV sits at the 21st percentile of its own range.

Valuation For a bank we price the book, not the earnings: P/BV is what the market pays for each ₹1 of the bank's net worth. A bank below 1× book is priced below the value of what it owns, net of what it owes.

SBFC Finance Ltd trades at 3.1× P/BV, near the bottom of its own range — cheaper only 21% of the time. Its long-run median P/BV is 3.3×, measured across 2.7 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/BV of 3.1× is near the bottom of its own range — cheaper only 21% of the time, against a long-run median of 3.3× measured over 2.7 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

The honest context for that discount: a bank earning about 12% on its equity is worth less per rupee of book, and the market has priced that in rather than overlooked it. The discount closes only if the returns themselves improve.

Why the multiple sits where it does: over the past year book value grew while the price moved −18.6% — price and book moved together, holding the multiple in its range.

Put together: the multiple is low against its own past, so the story rests on the book-value line underneath it, not the multiple.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

Stage: No read Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

SBFC Finance Ltd reads as no read on its fundamental arc. Under eight usable quarters on the growth trio — not enough history for an honest trajectory read. The read is built from 5 quarters across 1 curve, on partial evidence.

Why it matters: with too little history, an honest page says so instead of guessing a trajectory.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

Fewer than eight usable quarters on the growth curves — this page will not guess a trajectory from a stub of history.

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

4-Factor Sector Score

60.1/100 — rank 3 of 6 in Finance & Investments - MSME Lending · 84% evidence confidence

SBFC Finance Ltd scores 60.1 out of 100 against the 6 companies it is compared with in Finance & Investments - MSME Lending, ranking 3. Acceleration candidate, not a confirmed leader: earnings are strong but sector-relative strength is -4.8% and the one-year return is -18.6%. Do not upgrade until sector-relative strength is above zero and another reported period confirms growth.

The four contributions add to the total exactly: 27.2 + 16.8 + 9.1 + 7 = 60.1. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if ROA rolls over or gross NPA rises while sector-relative strength deteriorates.

Revenue For a bank, revenue is everything the franchise earns — interest on the loan book plus fee and other income.

SBFC Finance Ltd reported ₹361 Cr of income in the Mar 25 quarter, +29.4% year on year. That is the 4th straight quarter of year-on-year growth. Over 3 years it has compounded at 35.2% a year. The last full year, FY25, came in at ₹1,306 Cr. The last four reported quarters add to ₹1,307 Cr.

SBFC Finance Ltd reported ₹361 Cr of income in the Mar 25 quarter, +29.4% year on year. That is the 4th straight quarter of year-on-year growth. Over 3 years it has compounded at 35.2% a year. The last full year, FY25, came in at ₹1,306 Cr. The last four reported quarters add to ₹1,307 Cr.

FY25 revenue came in at ₹1,306 Cr (+28.2% on the year), capping 3 years at 35.2% compound. The latest quarter (Mar 25) printed ₹361 Cr, +29.4% year on year — the 4th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +28.3% growth against the decade's 35.2% — the current year is running slower than its own long-run rate.

→ Revenue grew — did the net margin hold as it scaled? Next: 26.0% this quarter (−0.5 pp YoY).

Net margin Net margin — what the bank keeps of every ₹100 of revenue after every cost, provision and tax. It is the cleanest single margin we can read for a lender.

SBFC Finance Ltd's net margin is 26.0% in the Mar 25 quarter, −0.5 percentage points against the same quarter a year ago. Across 4 fiscal years the net margin has ranged 12.3% to 26.4%. The current quarter sits inside that band.

SBFC Finance Ltd's net margin is 26.0% in the Mar 25 quarter, −0.5 percentage points against the same quarter a year ago. Across 4 fiscal years the net margin has ranged 12.3% to 26.4%. The current quarter sits inside that band.

The latest quarter's net margin is 26.0%, −0.5 pp against the same quarter a year ago. Across 4 fiscal years the net margin has ranged 12.3%–26.4%.

Why: the numbers show the net margin move clearly, but the cost lines behind it sit below what we hold — so we state the move without inventing its driver.

→ The net margin slipped — did that reach the bottom line? Next: profit +27.0% in the latest quarter.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

SBFC Finance Ltd earned ₹94.0 Cr of net profit in the Mar 25 quarter, +27.0% year on year. It is the 4th consecutive quarter of growth. Full-year FY25 profit was ₹345 Cr. The 3-year compound rate is 74.4%. That is 26.0% of the quarter's revenue. The same quarter a year earlier earned ₹74.0 Cr.

SBFC Finance Ltd earned ₹94.0 Cr of net profit in the Mar 25 quarter, +27.0% year on year. It is the 4th consecutive quarter of growth. Full-year FY25 profit was ₹345 Cr. The 3-year compound rate is 74.4%. That is 26.0% of the quarter's revenue. The same quarter a year earlier earned ₹74.0 Cr.

Mar 25 profit was ₹94.0 Cr, +27.0% year on year — the 4th consecutive quarter of growth. On the full year, FY25 printed ₹345 Cr (+45.6%), and the 3-year compound rate is 74.4%.

Why profit moved: revenue contributed +29.4% and the margin −0.5 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit +47.8% vs revenue +28.3%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

→ Profit is up — how clean is the loan book behind it? Next: we hold no quarterly loan-book numbers — the section says so plainly.

Asset quality — the ladder Gross NPA is the slice of the loan book where repayments have stopped. Net NPA is what remains after the money already set aside against those loans. Falling is healing; rising is damage arriving.

Loan-book quality history is not available for SBFC Finance Ltd, so this section names the gap rather than estimating a ratio. No gross or net non-performing-asset series is filed in a form this page can read, and none is inferred from the profit line. The income, margin and return sections above carry the evidence this business does report.

We do not hold quarterly loan-book quality numbers for this bank, so this section states that plainly rather than working around it.

Why: loan-book quality is the engine room of a bank, and its drivers — slippages, recoveries, provisioning — sit below what we hold for this name; the sections around it carry the reads we can stand behind.

→ Behind the profits — is the book itself still growing? Next: revenue grew +28.2% in FY25.

The loan book We read the loan book through revenue — when the book grows, revenue grows with it. It is a rough proxy, and we say so: rate moves and fee swings can shift it a few points in any one year.

SBFC Finance Ltd's revenue grew +28.2% in FY25 to ₹1,306 Cr, so the book is growing. The latest quarter ran +29.4% year on year. The net margin on that income is 26.0%, −0.5 percentage points against a year ago. Interest income is a proxy for the book; rate moves can shift it a few points in any one year.

FY25 revenue was ₹1,306 Cr, +28.2% on the year, and the latest quarter ran +29.4% year on year. The net margin on that revenue is 26.0% this quarter (−0.5 pp YoY) — growth with a narrowing margin on it.

The synthesis: a lender compounds when the book grows while the margin holds and the loan book stays clean — gross NPA is the loan-quality read we carry here.

→ Does all of this actually earn its keep on equity? Next: ROE is 12%.

Returns on equity and assets Two numbers rate a bank: ROE — what it earns on shareholder money — and ROA — what it earns on everything it deploys. ROE above ~13–15% earns its keep; below that, growth builds book slowly.

SBFC Finance Ltd earns a return on equity of 12% in FY25. Its trough over the ladder below was 5% in FY22. For a lender the balance sheet is the operating asset, so equity return and asset return have to be read together.

FY25 ROE came in at 12%, recovered from a FY22 trough of 5%. On assets, the latest reading is about null% — every ₹100 the bank deploys earns roughly null a year. That return is below the bar a bank must clear to compound book value quickly — which is also the honest reason the stock trades where it does.

Why ROE moved: profit compounded 74.4% a year over 3 years while the equity base grew more slowly — earnings recovering faster than book value builds is what lifts ROE off a trough.

→ Who owns this bank, and are they adding or leaving? Next: Domestic institutions added 4.5 points over 8 quarters.

Debt

For a bank, borrowings are raw material, not a warning sign — solvency is read through the returns and the loan book. A manufacturer’s debt is a claim against its profits, so the debt-to-equity lens that works everywhere else misleads on a lender and is not applied here.

A manufacturer’s debt is a claim against its profits; a bank’s borrowings are its inventory — money taken in to be lent out. The debt lens that works everywhere else misleads here, so this page does not apply it. The solvency questions for a bank — is the loan book sound, is the equity earning — are read through the loan-book and returns sections above.

→ Who owns this, and are they adding or leaving? Next: Domestic institutions added 4.5 points over 8 quarters.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Domestic institutions added 4.5 points of SBFC Finance Ltd over 8 quarters, the biggest move on the register. That takes domestic institutions to 20.7% of the company. Promoters moved −2.9 points over the same window, to 52.3%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: +4.5 points over 8 quarters to 20.7%; Promoters: −2.9 points over 8 quarters to 52.3%; Foreign institutions: +2.5 points over 8 quarters to 7.2%.

Why the register moved: domestic institutions drove it (+4.5 points), absorbed on the other side by promoters (−2.9 points) — steady accumulation by institutions reading the same numbers this page reads.

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

SBFC Finance Ltd: the Z-score is omitted — it was built for manufacturers, not banks, and applying it here would be theatre. The Z-score was built for manufacturers and is not applied to banks and lenders, so solvency here is read from the capital and asset-quality lines instead.

The safety line in one sentence: the Z-score is omitted — it was built for manufacturers, not banks, and applying it here would be theatre.

Frequently asked questions