Finance
Valuation | |
|---|---|
| Market Cap | 2.22 kCr |
| Price/Earnings (Trailing) | -1.6 |
| Price/Sales (Trailing) | 1.84 |
| EV/EBITDA | -1.86 |
| Price/Free Cashflow | 0.6 |
| MarketCap/EBT | -1.47 |
| Enterprise Value | 1.71 kCr |
Fundamentals | |
|---|---|
Growth & Returns | |
|---|---|
| Price Change 1W | 1% |
| Price Change 1M | -4.1% |
| Price Change 6M | 2.2% |
| Price Change 1Y | -23.6% |
| 3Y Cumulative Return | -23.4% |
| 5Y Cumulative Return | -19.9% |
Cash Flow & Liquidity | |
|---|---|
| Cash Flow from Investing (TTM) |
| Revenue (TTM) |
| 1.21 kCr |
| Rev. Growth (Yr) | -57.1% |
| Earnings (TTM) | -1.14 kCr |
| Earnings Growth (Yr) | 78.4% |
Profitability | |
|---|---|
| Operating Margin | -125% |
| EBT Margin | -125% |
| Return on Equity | -51.13% |
| Return on Assets | -20.05% |
| Free Cashflow Yield | 167.08% |
| -119.21 Cr |
| Cash Flow from Operations (TTM) | 3.67 kCr |
| Cash Flow from Financing (TTM) | -3.71 kCr |
| Cash & Equivalents | 503.33 Cr |
| Free Cash Flow (TTM) | 3.65 kCr |
| Free Cash Flow/Share (TTM) | 411.35 |
Balance Sheet | |
|---|---|
| Total Assets | 5.68 kCr |
| Total Liabilities | 3.45 kCr |
| Shareholder Equity | 2.23 kCr |
| Net PPE | 24.68 Cr |
| Inventory | 0.00 |
| Goodwill | 17.39 Cr |
Capital Structure & Leverage | |
|---|---|
| Debt Ratio | 0.00 |
| Debt/Equity | 0.00 |
| Interest Coverage | -3.66 |
| Interest/Cashflow Ops | 5.44 |
Dividend & Shareholder Returns | |
|---|---|
| Shares Dilution (1Y) | 24.3% |
| Shares Dilution (3Y) | 24.9% |
Balance Sheet: Strong Balance Sheet.
Technicals: Bullish SharesGuru indicator.
Smart Money: Smart money has been increasing their position in the stock.
Dividend: Stock hasn't been paying any dividend.
Profitability: Poor Profitability. Recent profit margins are negative at -94%.
Growth: Declining Revenues! Trailing 12m revenue has fallen by -55.7% in past one year. In past three years, revenues have changed by -2.8%.
Momentum: Stock has a weak negative price momentum.
Dilution: Company has a tendency to dilute it's stock investors.
Past Returns: Underperforming stock! In past three years, the stock has provided -23.4% return compared to 13% by NIFTY 50.
Balance Sheet: Strong Balance Sheet.
Technicals: Bullish SharesGuru indicator.
Smart Money: Smart money has been increasing their position in the stock.
Dividend: Stock hasn't been paying any dividend.
Profitability: Poor Profitability. Recent profit margins are negative at -94%.
Growth: Declining Revenues! Trailing 12m revenue has fallen by -55.7% in past one year. In past three years, revenues have changed by -2.8%.
Momentum: Stock has a weak negative price momentum.
Dilution: Company has a tendency to dilute it's stock investors.
Past Returns: Underperforming stock! In past three years, the stock has provided -23.4% return compared to 13% by NIFTY 50.
Investor Care | |
|---|---|
| Shares Dilution (1Y) | 24.3% |
| Earnings/Share (TTM) | -156.07 |
Financial Health | |
|---|---|
| Debt/Equity | 0.00 |
Technical Indicators | |
|---|---|
| RSI (14d) | 57.1 |
| RSI (5d) | 64.42 |
| RSI (21d) | 43.37 |
| MACD Signal | Buy |
| Stochastic Oscillator Signal | Hold |
| SharesGuru Signal | Buy |
| RSI Signal | Hold |
| RSI5 Signal | Hold |
| RSI21 Signal | Hold |
| SMA 5 Signal | Buy |
| SMA 10 Signal | Buy |
| SMA 20 Signal | Buy |
| SMA 50 Signal | Sell |
| SMA 100 Signal | Sell |
Summary of Spandana Sphoorty Financial's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Management's outlook for Spandana Sphoorty Financial Limited is cautiously optimistic, focusing on improving operational efficiency and sustaining growth in the microfinance sector. Key takeaways from management include:
AUM Growth Plans: The management anticipates achieving an Asset Under Management (AUM) of approximately Rs. 9,000 to Rs. 10,000 crores by FY'28, representing a sustainable growth strategy rather than aggressive expansion. The AUM as of December 31, 2025, was Rs. 3,948 crores.
New Book Performance: The new portfolio sourced since April 2025 constitutes 58% of the total and boasts an impressive collection efficiency of 99.8%. Management aims to increase this to 90% by the end of FY'26, which is essential for enhancing overall portfolio quality.
Disbursement Targets: Management projects disbursements of Rs. 1,500 crores for Q4 FY'26, with an ambition to stabilize disbursement at Rs. 500 crores per month, increasing to Rs. 550-600 crores in subsequent months.
Credit Cost Projections: For FY'27, gross slippages are expected to be around Rs. 225 crores with net slippages of approximately Rs. 50 crores, reflecting the anticipated improvement in asset quality.
Operational Adjustments: The plan includes merging non-productive branches, aiming to reduce the total from about 1,500 to 1,250 branches, which will help streamline operations and reduce costs. On a broader scale, the management aims to reduce overall OPEX further.
New Technological Initiatives: A transition to a new Loan Origination System with Perfios is in progress, aimed at improving customer interactions and operational efficiency.
Merging Subsidiaries: Plans to merge the subsidiary, Criss Financial, with the parent company are in place, driven by regulations that have changed qualifying asset criteria.
These strategic points underline management's commitment to consolidating and optimizing operations while focusing on sustainable growth within the regulatory framework affecting the microfinance sector.
Understand Spandana Sphoorty Financial ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
| Shareholder Name | Holding % |
|---|---|
| KANGCHENJUNGA LIMITED | 41.12% |
| KEDAARA CAPITAL FUND III LLP | 7.04% |
| GOLDMAN SACHS FUNDS - GOLDMAN SACHS INDIA EQUITY P | 3.77% |
| SG INDIA ALPHA HOLDINGS LLC | 3.57% |
| VALIANT MAURITIUS PARTNERS OFFSHORE LIMITED | 3.11% |
| ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED | 2.92% |
Detailed comparison of Spandana Sphoorty Financial against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
|---|---|---|---|---|---|---|---|---|---|
| BAJFINANCE | Bajaj Finance | 6 LCr | 79.39 kCr | -1.30% | +13.40% | 26.58 | 7.56 | - | - |
| BANDHANBNK | Bandhan Bank |
Comprehensive comparison against sector averages
SPANDANA metrics compared to Finance
| Category | SPANDANA | Finance |
|---|---|---|
| PE | -1.60 | 17.36 |
| PS | 1.84 | 3.28 |
| Growth | -55.7 % | 12.9 % |
Spandana Sphoorty Financial Limited engages in the microfinance business in India. The company offers joint liability group based microfinance for women entrepreneurs; loans against the property; nano enterprise loans; and individual loans. It serves low-income customers in semi-urban and rural areas. Spandana Sphoorty Financial Limited was founded in 1998 and is based in Hyderabad, India.
This is an informational page just to provide a quick 'first look' at the stock. You must do your own deeper research. Know your risk appetite. Consult a SEBI-registered financial advisor before making any investment decisions.
SPANDANA vs Finance (2021 - 2026)
Question 1: In January, how are you seeing the X bucket collection efficiency trending as well as how are the disbursements playing out in January?
Answer: January thus far shows better disbursement and collection efficiency compared to December. In Andhra Pradesh, the collection efficiency dipped in December but it has normalized and remains around 98.9% to 99%. We see improvement in performance, and the trend is encouraging for the coming months.
Question 2: How do you look at your disbursements scaling up?
Answer: We aim for initial disbursements of around Rs. 1,500 crores. It's crucial for us to run a sustainable business, targeting Rs. 500 crores monthly initially, eventually moving to Rs. 550 crores to Rs. 600 crores as we scale.
Question 3: What has been the traction in mobilization of bank loans since December and January, and what rates are the new loans coming in at?
Answer: Currently, bank loans contribute about 42% of our borrowings, which we expect to increase as our results improve. The PSU banks are anticipated to re-enter the market, possibly raising our bank funding share to around 60%. Rates are stabilizing, contingent on the credit guarantee scheme rollout.
Question 4: What are your plans regarding CGFMU?
Answer: We are currently not taking CGFMU as it isn't beneficial given our expected credit costs, which are below 3%. We consider studying this option for the new financial year post evaluating the credit guarantee scheme's impact.
Question 5: Can you explain the asset quality issues in your subsidiary, Criss Financial, which has reported 10% gross NPA?
Answer: The Criss Financial book includes individual loans and loans against property, which have high impairments. We're concentrating on enhancing collections through a focused team, as well as seeking to reduce operational costs through the proposed merger with Spandana.
Question 6: What is your medium-term outlook on AUM growth and ROA levels for the next 2-3 years?
Answer: We anticipate 25% to 30% growth over the coming years, despite industry regulation urging more conservative expansions. The low base due to prior downturns might allow us to grow around 40%, but we're committed to regulatory compliance.
Question 7: Can you comment on the recent credit rating agency report suggesting changes in management could hinder normalization?
Answer: While attrition has been notable, with improvement in our operations and recovery efforts, we expect this to stabilize. The senior team remains largely intact, and business performance will support lower attrition as recovery efforts succeed.
Question 8: Can you quantify this quarter's slippages?
Answer: Total slippage for the quarter stands at Rs. 152 crores, while the credit cost accounted for is about Rs. 58 crores after recoveries and proceeds from ARC transactions.
Question 9: What are your projections for credit costs in FY'27?
Answer: We anticipate gross slippages of around Rs. 225 crores, with net slippage expected to be about Rs. 50 crores, driven by an improved quality of the new book.
Question 10: How will your write-off policy and current write-offs influence future credit costs?
Answer: For Q3, we've written off Rs. 214 crores, adopting a 180-day approach. As we transition into a more business-as-usual model, we aim to maintain credit costs around 2.5% to 3% moving forward.
| ACM GLOBAL FUND VCC |
| 2.14% |
| VALIANT MAURITIUS PARTNERS FDI LIMITED | 2.02% |
| VALIANT MAURITIUS PARTNERS LIMITED | 1.39% |
| VALIANT INDIA OPPORTUNITIES LTD | 1.11% |
Distribution across major stakeholders
Distribution across major institutional holders
| 25.42 kCr |
| 24.36 kCr |
| +6.90% |
| +2.50% |
| 14.67 |
| 1.04 |
| - |
| - |
| CREDITACC | CreditAccess Grameen | 20.66 kCr | 5.87 kCr | -2.80% | +20.90% | 42.52 | 3.52 | - | - |
| EQUITASBNK | Equitas Small Finance Bank | 7.54 kCr | 7.64 kCr | -0.80% | -7.90% | 49.08 | 0.99 | - | - |
| -77.8% |
| 58 |
| 258 |
| 422 |
| 603 |
| 666 |
| 516 |
| Other expenses | 3.8% | 56 | 54 | 59 | 41 | 76 | 62 |
| Profit Before exceptional items and Tax | 61.5% | -125.45 | -327.13 | -480.89 | -577.62 | -587.63 | -288.61 |
| Total profit before tax | 61.5% | -125.45 | -327.13 | -480.89 | -577.62 | -587.63 | -288.61 |
| Current tax | - | 0 | 0 | 0 | 0 | -66.31 | -9.45 |
| Deferred tax | 60.2% | -30.45 | -77.97 | -120.66 | -143.32 | -81.08 | -62.83 |
| Tax expense | 60.2% | -30.45 | -77.97 | -120.66 | -143.32 | -147.39 | -72.28 |
| Total profit (loss) for period | 61.6% | -95 | -249.16 | -360.23 | -434.3 | -440.24 | -216.33 |
| Other comp. income net of taxes | -202% | -12.53 | -3.48 | 13 | -17.31 | 10 | 11 |
| Total Comprehensive Income | 57.2% | -107.53 | -252.64 | -347.04 | -451.61 | -430.01 | -205.41 |
| Earnings Per Share, Basic | 61.8% | -11.88 | -32.76 | -50.52 | -60.91 | -61.73 | -30.34 |
| Earnings Per Share, Diluted | 61.8% | -11.88 | -32.76 | -50.52 | -60.91 | -61.73 | -30.34 |
| Debt equity ratio | - | - | - | - | - | - | - |
| -40.6% |
| 64 |
| 107 |
| 66 |
| 15 |
| 22 |
| 32 |
| Total Expenses | 97.6% | 3,519 | 1,781 | 1,376 | 1,327 | 1,287 | 843 |
| Employee Expense | 23.1% | 555 | 451 | 295 | 217 | 166 | 167 |
| Finance costs | -2.3% | 876 | 897 | 445 | 514 | 417 | 354 |
| Depreciation and Amortization | -5.3% | 19 | 20 | 11 | 8.55 | 7.48 | 8.74 |
| Impairment on financial instruments | 610.7% | 1,863 | 263 | 500 | 466 | 640 | 273 |
| Other expenses | 37.6% | 206 | 150 | 125 | 122 | 53 | 41 |
| Profit Before exceptional items and Tax | -304% | -1,273.85 | 626 | 18 | 65 | 178 | 598 |
| Total profit before tax | -304% | -1,273.85 | 626 | 18 | 65 | 178 | 598 |
| Current tax | -101.1% | 0 | 93 | 0 | 83 | 136 | 65 |
| Deferred tax | -597% | -317.11 | 65 | 5.91 | -65.03 | -87.56 | 196 |
| Tax expense | -302.6% | -317.11 | 158 | 5.91 | 18 | 49 | 261 |
| Total profit (loss) for period | -305.1% | -956.74 | 468 | 12 | 47 | 129 | 337 |
| Other comp. income net of taxes | -13.7% | 3.95 | 4.42 | -40.49 | -34.66 | -29.96 | -0.39 |
| Total Comprehensive Income | -302.5% | -952.79 | 472 | -28.16 | 12 | 99 | 336 |
| Reserve excluding revaluation reserves | - | 0 | - | - | 2,962 | - | 2,544 |
| Earnings Per Share, Basic | -308.6% | -134.18 | 65.81 | 1.74 | 7.217 | 20.055 | 53.853 |
| Earnings Per Share, Diluted | -311.7% | -134.18 | 64.84 | 1.74 | 7.199 | 19.978 | 53.395 |
| Debt equity ratio | - | - | 0.0253 | - | 0.012 | 0.0191 | 0.0116 |
| -4.6% |
| 105 |
| 110 |
| - |
| 37 |
| 48 |
| 89 |
| Property, plant and equipment | -22.7% | 18 | 23 | - | 27 | 28 | 27 |
| Total non-financial assets | 26.1% | 778 | 617 | 0 | 340 | - | - |
| Total assets | -31.3% | 5,501 | 8,008 | - | 10,932 | 12,870 | 10,934 |
| Equity share capital | 12.9% | 80 | 71 | - | 71 | 71 | 71 |
| Total equity | -13.1% | 2,279 | 2,623 | - | 3,426 | 3,556 | 3,286 |
| Debt securities | -41% | 1,142 | 1,935 | - | 3,029 | 3,868 | 3,950 |
| Borrowings | -40.8% | 1,930 | 3,262 | - | 4,301 | 5,124 | 3,537 |
| Subordinated liabilities | - | - | - | - | - | 20 | 20 |
| Total financial liabilities | -40.8% | 3,157 | 5,331 | 0 | 7,443 | - | - |
| Current tax liabilities | 129.9% | 11 | 5.35 | - | 5.59 | 5.59 | 4.02 |
| Provisions | -4.2% | 24 | 25 | - | 23 | 17 | 15 |
| Total non financial liabilities | 20.8% | 65 | 54 | 0 | 64 | - | - |
| Total liabilities | -40.2% | 3,222 | 5,385 | - | - | 9,314 | 7,648 |
| Total equity and liabilities | -31.3% | 5,501 | 8,008 | - | 10,932 | 12,870 | 10,934 |
| 251% |
| 3,783 |
| -2,503.44 |
| -2,052.51 |
| 820 |
| - |
| - |
| Proceeds from sales of PPE | 3.1% | 0.37 | 0.35 | 0 | 0.44 | - | - |
| Purchase of property, plant and equipment | -45.5% | 13 | 23 | 13 | 4.46 | - | - |
| Proceeds from sales of investment property | -20.7% | 9,676 | 12,197 | 6,028 | 10,910 | - | - |
| Purchase of investment property | -20% | 9,663 | 12,085 | 6,190 | 10,862 | - | - |
| Purchase of intangible assets | - | 0 | 0 | 0 | 7.08 | - | - |
| Proceeds from sales of long-term assets | - | -1.42 | 0 | 0 | 0 | - | - |
| Purchase of other long-term assets | - | 25 | 0 | 0 | 0 | - | - |
| Interest received | - | 34 | 0 | 0 | 0 | - | - |
| Other inflows/outflows of cash | - | -120.61 | 0 | 0 | 8.06 | - | - |
| Net Cashflows From Investing Activities | -1669.7% | -200.21 | -10.37 | -177.62 | 45 | - | - |
| Proceeds from issuing shares | -104.3% | 0.44 | 14 | 11 | 292 | - | - |
| Proceeds from issuing debt etc | - | 0 | 0 | 0 | -271.97 | - | - |
| Proceeds from borrowings | -63.7% | 3,330 | 9,164 | 5,110 | 0 | - | - |
| Repayments of borrowings | 16.5% | 7,088 | 6,086 | 2,802 | 1,290 | - | - |
| Payments of lease liabilities | 18.8% | 3.84 | 3.39 | 2.13 | 2.31 | - | - |
| Net Cashflows From Financing Activities | -221.8% | -3,761.36 | 3,089 | 2,317 | -1,271.56 | - | - |
| Net change in cash and cash eq. | -131.3% | -178.58 | 575 | 86 | -406.79 | - | - |