Suryoday Small Finance Bank Ltd., incorporated in the year 2008, is a Small Cap company (having a market cap of Rs 2263.77 Crore) operating in General sector.
Financials
For the quarter ended 31-03-2021, the company reported a Standalone Total Income of Rs 34.56 Crore, up 45.39 % from last quarter Total Income of Rs 23.77 Crore and up 42.16 % from last year same quarter Total Income of Rs 24.31 Crore. Company reported net profit after tax of Rs -43.01 Crore in latest quarter.
Investment Rationale
While Suryoday’s near-term asset quality concerns persist amid covid resurgence, and its high exposure to MFI segment, the brokerage expects better and sustainable profitability in the longer term on the back of: 1) incremental focus on secured assets, 2) cost leadership, 3) adequate capital (CAR: 51%), and 4) conservative provision (bank is amongst the very few having a floating provision policy). It initiates with a BUY rating and target price of Rs310, valuing the stock at 1.8 FY23E book value.
Promoter/FII Holdings
Promoters held 28 per cent stake in the company as of March 31, 2021, while FIIs held 6.7 per cent, DIIs 11.2 per cent and public and others 37.4 per cent.
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