ScoreWhy is ESAF Small Finance Bank Ltd ?
1
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 71.64%
2
With a growth in Operating Profit of 166.15%, the company declared Very Positive results in Mar 26
- The company has declared positive results for the last 2 consecutive quarters
- PBT LESS OI(Q) Highest at Rs -174.28 cr.
- GROSS NPA(Q) Lowest at 5.41%
- NII(Q) Highest at Rs 517.75 cr
3
Technical trend is Sideways signifying no clear price momentum
- The technical trend has improved from Mildly Bearish on 13-May-26 and has generated -4.87% returns since then
4
With ROA of -0.5, 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 -3.83%, its profits have risen by 64.1%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to ESAF Small Fin should be less than 10%
- Overall Portfolio exposure to Other Bank should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Bank)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is ESAF Small Fin for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
ESAF Small Fin
3.35%
-0.10
37.06%
Sensex
-4.95%
-0.49
12.94%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Net Interest Income Growth (5y)
16.68%
Net Profit Growth (5y)
-232.05%
Advance to Deposit
87.76%
Capital Adequacy Ratio (Tier 1)
0
Gross NPA (latest)
5.41%
Gross NPA (avg)
5.47%
Coverage Ratio (avg)
57.49%
Cost to Income (avg)
65.50%
Net Interest Margin (avg)
9.41%
Operating Profit to Assets (avg)
11.15%
ROA (avg)
0.24%
Net Debt to Equity (avg)
0
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Price to Book Value
0.93
PEG Ratio
NA
Dividend Yield
NA
ROE (Latest)
-9.35%
ROA (Latest)
-0.54%
Net NPA to Book Value
21.48
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend22What is working for the Company
PBT LESS OI(Q)
Highest at Rs -174.28 cr.
GROSS NPA(Q)
Lowest at 5.41%
NII(Q)
Highest at Rs 517.75 cr
CREDIT DEPOSIT RATIO(HY)
Highest at 83.54%
INTEREST EARNED(Q)
Highest at Rs 995.08 cr
PBDIT(Q)
Highest at Rs 39.92 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 4.01%
PAT(Q)
Highest at Rs 23.51 cr.
EPS(Q)
Highest at Rs 0.46
NET NPA(Q)
Lowest at 1.77%
-2What is not working for the Company
NON-OPERATING INCOME(Q)
is 743.34 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for ESAF Small Fin
Profit After Tax (PAT) - Quarterly
At Rs 23.51 cr has Grown at 125.2% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs -93.28 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs -174.28 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Gross NPA - Quarterly
Lowest at 5.41%
in the last five quartersMOJO Watch
Proportion of stressed loans given by the bank are falling
Gross NPA (%)
Net Interest Income (Quarterly)
Highest at Rs 517.75 cr
in the last five quartersMOJO Watch
The bank's income from core business is increasing
Net Interest Income (Rs Cr)
Interest Earned - Quarterly
Highest at Rs 995.08 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Interest Earned (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 39.92 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 4.01%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit After Tax (PAT) - Quarterly
Highest at Rs 23.51 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 0.46
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Net NPA - Quarterly
Lowest at 1.77%
in the last five quartersMOJO Watch
Proportion of stressed loans given by the bank are falling
Net NPA (%)
Credit Deposit Ratio - Half Yearly
Highest at 83.54%
in the last four periodsMOJO Watch
Bank has been creating proportionately higher loans against its deposits, thereby creating higher revenue generating assets
Credit Deposit Ratio (%)
Here's what is not working for ESAF Small Fin
Non Operating Income - Quarterly
is 743.34 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
