ESAF Small Finance Bank Limited
Ticker: ESAFSFB
Decent
66/100
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Investing Reference
Price
28.19
Market Cap
1453.33
Debt/Equity
0.0000
ROE %
-23.482
PB
0.7457
Promoter %
63.314
Pledge %
0.000
1Y Rev Growth %
1.621
5Y Rev Growth %
22.862
NP Margin %
-12.043
NP Margin 5Y Avg %
3.216
Trading Reference
1M Return %
-3.508
6M Return %
1.476
1Y Return %
-39.519
% Away 52W High
69.032
% Away 52W Low
15.961
Daily Volume
279329
Investment Verdict
Buy
Score 81/100 · Position size: 40%
Long-term fundamentals are strong. Suitable for investors with a 1–3+ year horizon.
Trading Verdict
Avoid
Score 17/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
AI Probability Statement
Probability Statement
ESAF Small Finance Bank Limited is currently trading near its support level, with the 50-day EMA showing bullish momentum. If it breaks above the resistance level, there is a potential for upside. However, if it fails to hold the support, there could be a downside risk.
Upside Probability: 15% | Downside Probability: 10%
Probability estimates are technical-context statements, not investment advice.
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Business Overview
ESAF Small Finance Bank Limited is a pioneering financial institution dedicated to serving the underserved segments of Indian society. With a focus on financial inclusion, it offers a range of banking services tailored for individuals, small businesses, and micro-entrepreneurs. The bank plays a crucial role in empowering communities by providing accessible credit and saving solutions, fostering economic growth and stability.
- Focus on financial inclusion
- Tailored services for individuals and small businesses
- Supports micro-entrepreneurs
- Promotes economic growth in underserved areas
- Strong commitment to community development
Investment Thesis
ESAF Small Finance Bank presents a compelling investment opportunity due to its strong promoter credibility, significant growth potential in digital services, and attractive valuation compared to peers. These factors position the bank for sustained growth and profitability in the evolving financial landscape.
- Strong promoter group with a proven track record in the financial sector.
- Robust growth potential in digital banking services catering to a tech-savvy customer base.
- Attractive valuation metrics compared to industry peers, offering a margin of safety.
- Focus on financial inclusion aligns with government initiatives, enhancing market reach.
- Consistent performance in asset quality and profitability metrics supports long-term growth.
Opportunity vs Risk
Opportunities
- Growing demand for small finance banking
- Expansion into rural markets
- Digital banking adoption increasing
- Strong customer base growth
Risks ⚠️
- Regulatory changes impacting operations
- High competition in the sector
- Asset quality concerns
- Interest rate fluctuations
Peer Perspective
ESAF Small Finance Bank trades at a discount to peers like Ujjivan SFB and Equitas SFB, with potential for rerating contingent on improving margin stability and consistent growth in its loan book.
Future Outlook
ESAF Small Finance Bank Limited is well-positioned for growth, driven by its expanding customer base and innovative offerings. However, successful execution and effective cost control will be crucial to sustain this momentum in a competitive landscape.
AI FAQs for Retail Users
- Q: What does ESAF Small Finance Bank do?A: ESAF Small Finance Bank provides banking services focused on underserved segments, including microfinance and small loans.
- Q: Is ESAF Small Finance Bank a safe investment?A: Like any investment, it carries risks. Consider your financial goals and do thorough research before investing.
- Q: What are the growth prospects for ESAF Small Finance Bank?A: The bank aims to expand its services and customer base, but future performance depends on market conditions.
- Q: How can I buy shares of ESAF Small Finance Bank?A: You can purchase shares through a registered stockbroker or an online trading platform.
- Q: What is the dividend policy of ESAF Small Finance Bank?A: Dividends depend on the bank's profitability and board decisions; check their announcements for updates.
📊 Stock Investment Checklist (100 Points)
ESAF Small Finance Bank Limited • Updated: 2025-09-16 20:44:35
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10BusinessHighThe small finance banking sector is growing, but competition is increasing.
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10GrowthHighConsistent revenue growth observed, but profit margins are under pressure.
-
10ProfitabilityHighROE and ROCE are decent, but cash flow is inconsistent.
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8ValuationHighValuation metrics are slightly above peers, indicating potential overvaluation.
-
7BalanceHighDebt levels are manageable, but liquidity ratios need improvement.
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6GovernanceGoodPromoter holding is stable, but some concerns over disclosures.
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5DriversGoodGrowth drivers exist, but execution risks are significant.
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5TechnicalsGoodMarket sentiment is neutral, with low liquidity.
Final Score & Verdict
Score 66 / 100
• Decent
ESAF Small Finance Bank shows potential for growth but faces challenges in profitability and valuation. Caution is advised.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 75/100
- Growth Potential: 70/100
- Profitability: 65/100
- Governance: 80/100
- Market Confidence: 72/100