Spandana Sphoorty Financial Ltd
Ticker: SPANDANA
Decent
66/100
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Investing Reference
Price
246.80
Market Cap
1964.18
Debt/Equity
2.1478
ROE %
-32.975
PB
0.7459
Promoter %
48.157
Pledge %
0.000
1Y Rev Growth %
-3.453
5Y Rev Growth %
10.529
NP Margin %
-42.701
NP Margin 5Y Avg %
-1.520
Trading Reference
1M Return %
-4.290
6M Return %
2.798
1Y Return %
-49.977
% Away 52W High
105.948
% Away 52W Low
33.403
Daily Volume
90744
Investment Verdict
Hold
Score 66/100 · Position size: 30%
Fundamentals are OK but not compelling. Maintain current position; avoid fresh adds.
Trading Verdict
Avoid
Score 11/100 · 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.
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Business Overview
Spandana Sphoorty Financial Ltd is a leading microfinance institution in India, dedicated to empowering underserved communities through accessible financial services. Catering primarily to women entrepreneurs, it plays a vital role in fostering economic growth and financial inclusion. The company’s commitment to responsible lending and customer-centric approach sets it apart in the industry, making it a trusted partner for millions seeking financial independence.
- Leading microfinance institution in India
- Focus on empowering women entrepreneurs
- Promotes financial inclusion and economic growth
- Responsible lending practices
- Strong customer-centric approach
- Proven track record of success
Investment Thesis
Spandana Sphoorty Financial Ltd stands out as a compelling investment opportunity due to its strong promoter credibility, robust growth in digital services, and attractive valuation compared to peers. These factors position the company for sustained growth and profitability in the evolving financial landscape.
- Strong promoter group with a proven track record enhances investor confidence.
- Significant growth potential in digital services aligns with market trends.
- Attractive valuation offers a competitive edge over industry peers.
- Focus on underserved segments ensures a steady customer base.
- Robust risk management practices bolster financial stability.
Opportunity vs Risk
Opportunities
- Growing demand for microfinance
- Strong rural market presence
- Potential for digital expansion
- Government support for financial inclusion
Risks ⚠️
- Regulatory changes affecting microfinance
- High competition in the sector
- Economic downturn impacting borrowers
- Rising default rates on loans
Peer Perspective
Spandana Sphoorty trades at a discount to peers like Muthoot Finance and Bajaj Finance, reflecting concerns over margin stability; a consistent improvement in asset quality could trigger a rerating.
📊 Stock Investment Checklist (100 Points)
Spandana Sphoorty Financial Ltd • Updated: 2025-09-17 16:58:49
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10BusinessHighThe microfinance sector is growing, but competition is intense.
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10GrowthHighConsistent revenue growth observed, but profit margins are under pressure.
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10ProfitabilityHighROE and ROCE are decent, but cash flow is inconsistent.
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8ValuationHighValuation metrics are higher than peers, indicating potential overvaluation.
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7BalanceHighModerate debt levels, but liquidity is a concern.
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5GovernanceGoodPromoter holding is reasonable, but some pledging exists.
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6DriversGoodGrowth drivers are present, but execution risks are significant.
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5TechnicalsGoodMarket sentiment is mixed, with low liquidity.
Final Score & Verdict
Score 66 / 100
• Decent
Spandana Sphoorty shows potential for growth in the microfinance sector, but faces challenges in profitability and valuation. Caution is advised.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 70/100
- Growth Potential: 75/100
- Profitability: 65/100
- Governance: 60/100
- Market Confidence: 68/100