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SPAN

Spandana Sphoorty FinancialNSEI:SPANDANA Stock Report

Market Cap

₹35.0b

7D

-2.2%

1Y

-2.5%

Updated

19 Oct, 2021

Data

Company Financials +
SPANDANA fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance2/6
Financial Health3/6
Dividends0/6

SPANDANA Overview

Spandana Sphoorty Financial Limited engages in the microfinance business in India.

Spandana Sphoorty Financial Competitors

Bajaj Finance

BSE:500034

₹4.7t

Cholamandalam Investment and Finance

BSE:511243

₹499.6b

Shriram Transport Finance

BSE:511218

₹383.8b

Mahindra & Mahindra Financial Services

NSEI:M&MFIN

₹234.3b

Price History & Performance

Summary of all time highs, changes and price drops for Spandana Sphoorty Financial
Historical stock prices
Current Share Price₹542.90
52 Week High₹479.80
52 Week Low₹830.00
Beta1.6
1 Month Change-13.71%
3 Month Change-16.92%
1 Year Change-2.49%
3 Year Changen/a
5 Year Changen/a
Change since IPO-35.96%

Recent News & Updates

Aug 18
Spandana Sphoorty Financial Limited Just Beat Revenue Estimates By 7.7%

Spandana Sphoorty Financial Limited Just Beat Revenue Estimates By 7.7%

Spandana Sphoorty Financial Limited ( NSE:SPANDANA ) last week reported its latest first-quarter results, which makes...

Shareholder Returns

SPANDANAIN Consumer FinanceIN Market
7D-2.2%-0.1%1.2%
1Y-2.5%89.0%65.9%

Return vs Industry: SPANDANA underperformed the Indian Consumer Finance industry which returned 91.7% over the past year.

Return vs Market: SPANDANA underperformed the Indian Market which returned 68.3% over the past year.

Price Volatility

Is SPANDANA's price volatile compared to industry and market?
SPANDANA volatility
SPANDANA Beta1.6
Industry Beta1.24
Market Beta1

Stable Share Price: SPANDANA is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SPANDANA's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19988,323Padmaja Gangireddyhttps://www.spandanaindia.com

Spandana Sphoorty Financial Limited engages in the microfinance business in India. The company provides income generation loans for low-income households; loans against the property; personal loans for business development, purchase of livestock, house construction/renovation, and other needs; gold loans for agriculture, business, and short-term liquidity needs; and interim loans, as well as business loans. It also offers loans for women to expand their existing income-generating activities, smoothening household cash flows, and acquiring productive assets.

Spandana Sphoorty Financial Fundamentals Summary

How do Spandana Sphoorty Financial's earnings and revenue compare to its market cap?
SPANDANA fundamental statistics
Market Cap₹34.97b
Earnings (TTM)₹1.40b
Revenue (TTM)₹10.90b

25.0x

P/E Ratio

3.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SPANDANA income statement (TTM)
Revenue₹10.90b
Cost of Revenue₹0
Gross Profit₹10.90b
Expenses₹9.50b
Earnings₹1.40b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 14, 2021

Earnings per share (EPS)21.75
Gross Margin100.00%
Net Profit Margin12.85%
Debt/Equity Ratio195.3%

How did SPANDANA perform over the long term?

See historical performance and comparison

Valuation

Is Spandana Sphoorty Financial undervalued compared to its fair value and its price relative to the market?

7.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SPANDANA (₹542.9) is trading below our estimate of fair value (₹586.24)

Significantly Below Fair Value: SPANDANA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SPANDANA is poor value based on its PE Ratio (25x) compared to the Indian Consumer Finance industry average (21.9x).

PE vs Market: SPANDANA is poor value based on its PE Ratio (25x) compared to the Indian market (22.2x).


Price to Earnings Growth Ratio

PEG Ratio: SPANDANA is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: SPANDANA is overvalued based on its PB Ratio (1.3x) compared to the IN Consumer Finance industry average (0.9x).


Future Growth

How is Spandana Sphoorty Financial forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

47.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SPANDANA's forecast earnings growth (47.8% per year) is above the savings rate (6.7%).

Earnings vs Market: SPANDANA's earnings (47.8% per year) are forecast to grow faster than the Indian market (19.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SPANDANA's revenue (14.6% per year) is forecast to grow faster than the Indian market (12.8% per year).

High Growth Revenue: SPANDANA's revenue (14.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SPANDANA's Return on Equity is forecast to be low in 3 years time (18.9%).


Past Performance

How has Spandana Sphoorty Financial performed over the past 5 years?

4.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SPANDANA has high quality earnings.

Growing Profit Margin: SPANDANA's current net profit margins (12.9%) are lower than last year (28.1%).


Past Earnings Growth Analysis

Earnings Trend: SPANDANA's earnings have grown by 4.4% per year over the past 5 years.

Accelerating Growth: SPANDANA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SPANDANA had negative earnings growth (-55.8%) over the past year, making it difficult to compare to the Consumer Finance industry average (5.7%).


Return on Equity

High ROE: SPANDANA's Return on Equity (5.1%) is considered low.


Financial Health

How is Spandana Sphoorty Financial's financial position?


Financial Position Analysis

Short Term Liabilities: SPANDANA's short term assets (₹84.2B) exceed its short term liabilities (₹34.1B).

Long Term Liabilities: SPANDANA's short term assets (₹84.2B) exceed its long term liabilities (₹24.2B).


Debt to Equity History and Analysis

Debt Level: SPANDANA's debt to equity ratio (195.3%) is considered high.

Reducing Debt: SPANDANA's debt to equity ratio has reduced from 339.9% to 195.3% over the past 5 years.

Debt Coverage: SPANDANA's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if SPANDANA's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is Spandana Sphoorty Financial current dividend yield, its reliability and sustainability?

2.30%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SPANDANA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SPANDANA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SPANDANA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SPANDANA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SPANDANA's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

  • Explore strong dividend paying companies in the Diversified Financials industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

1.2yrs

Average management tenure


CEO

Padmaja Gangireddy

no data

Tenure

₹53,750,000

Compensation

Mrs. Padmaja Reddy Gangireddy serves as Director at Spandana Sphoorty Financial Ltd since April 19, 2003 and also serves as its Managing Director. She founded Spandana Sphoorty Financial Limited in 1997. S...


CEO Compensation Analysis

Compensation vs Market: Padmaja's total compensation ($USD713.50K) is above average for companies of similar size in the Indian market ($USD287.98K).

Compensation vs Earnings: Padmaja's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: SPANDANA's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

Experienced Board: SPANDANA's board of directors are considered experienced (4.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Spandana Sphoorty Financial Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Spandana Sphoorty Financial Limited
  • Ticker: SPANDANA
  • Exchange: NSEI
  • Founded: 1998
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: ₹34.967b
  • Shares outstanding: 64.41m
  • Website: https://www.spandanaindia.com

Number of Employees


Location

  • Spandana Sphoorty Financial Limited
  • Plot No 31 & 32, Ramky Selinium Towers
  • Tower A, Ground floor
  • Hyderabad
  • 500032
  • India

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/19 15:46
End of Day Share Price2021/10/19 00:00
Earnings2021/06/30
Annual Earnings2021/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.