Getty Images has buy call on with a target price of Rs 500. The current market price of Spandana Sphoorty Financial is Rs 434.05. Time period given by analyst is one year when Spandana Sphoorty Financial Ltd. price can reach defined target.
Spandana Sphoorty Financial Ltd., incorporated in the year 2003, is a Mid Cap company (having a market cap of Rs 3121.33 Crore) operating in NBFC sector.
Spandana Sphoorty Financial Ltd. key Products/Revenue Segments include Interest, Income From Sale Of Share & Securities, Bad Debts Recovery and Commission for the year ending 31-Mar-2021.
Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 299.07 Crore, down -14.52 % from last quarter Total Income of Rs 349.87 Crore and down -37.73 % from last year same quarter Total Income of Rs 480.29 Crore. Company reported net profit after tax of Rs 28.60 Crore in latest quarter.
Investment Rationale
Considering the management and the operational stability, gradual recovery in earnings led by credit cost normalisation and favourable risk-reward (trading at 0.8x FY24E P/BV), it maintains BUY with a revised TP of Rs500 (earlier: Rs550) as it cuts earnings estimates for FY23/24 by >20% / >10%, respectively to factor in the higher credit cost. It assigns P/BV multiple of 1x on Sep-23 BVPS.
Promoter/FII Holdings
Promoters held 63.59 per cent stake in the company as of 30-Jun-2022, while FIIs owned 12.66 per cent, DIIs 4.12 per cent.
Spandana Sphoorty Financial Ltd., incorporated in the year 2003, is a Mid Cap company (having a market cap of Rs 3121.33 Crore) operating in NBFC sector.
Spandana Sphoorty Financial Ltd. key Products/Revenue Segments include Interest, Income From Sale Of Share & Securities, Bad Debts Recovery and Commission for the year ending 31-Mar-2021.
Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 299.07 Crore, down -14.52 % from last quarter Total Income of Rs 349.87 Crore and down -37.73 % from last year same quarter Total Income of Rs 480.29 Crore. Company reported net profit after tax of Rs 28.60 Crore in latest quarter.
Investment Rationale
Considering the management and the operational stability, gradual recovery in earnings led by credit cost normalisation and favourable risk-reward (trading at 0.8x FY24E P/BV), it maintains BUY with a revised TP of Rs500 (earlier: Rs550) as it cuts earnings estimates for FY23/24 by >20% / >10%, respectively to factor in the higher credit cost. It assigns P/BV multiple of 1x on Sep-23 BVPS.
Promoter/FII Holdings
Promoters held 63.59 per cent stake in the company as of 30-Jun-2022, while FIIs owned 12.66 per cent, DIIs 4.12 per cent.
(Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.
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