Equitas Small Finance Bank Ltd

About [ edit ]

Equitas Small Finance Bank Ltd before acquiring small bank license, operated as a wholly-owned subsidiary of Equitas Holding Ltd. The holding entity started its operations in 2007 in the microfinance segment & diversified into vehicle & housing finance in 2011. Also entered into SME & LAP in 2013. It merged with the other two subsidiaries named Equitas Microfinance Ltd & Equitas Housing Finance Ltd & formed a bank. After receiving a license in Sept 2016 the company commenced operations under Equitas small finance Bank. # #

Key Points [ edit ]
  • Market Cap 6,418 Cr.
  • Current Price 56.3
  • High / Low 68.2 / 30.0
  • Stock P/E 16.7
  • Book Value 24.1
  • Dividend Yield 0.00 %
  • ROCE 10.2 %
  • ROE 14.0 %
  • Face Value 10.0

Pros

  • Company has delivered good profit growth of 35.18% CAGR over last 5 years

Cons

  • Though the company is reporting repeated profits, it is not paying out dividend
  • Company has low interest coverage ratio.
  • Company has a low return on equity of 11.34% for last 3 years.

Peer comparison

Sector: Banks Industry: Banks - Private Sector

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Quarterly Results

Figures in Rs. Crores

Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021
Revenue 639 677 726 721 798 857 818
Interest 289 293 302 317 336 373 370
329 351 439 360 389 481 474
Financing Profit 22 32 -15 44 72 3 -26
Financing Margin % 3% 5% -2% 6% 9% 0% -3%
Other Income 64 86 74 30 64 146 178
Depreciation 0 0 0 0 0 0 0
Profit before tax 86 118 58 74 136 149 153
Tax % 42% 20% 26% 22% 24% 26% 26%
Net Profit 49 94 43 58 103 111 113
EPS in Rs 0.99
Gross NPA % 2.88% 3.01% 2.72% 2.86% 2.48% 4.16% 3.59%
Net NPA % 1.63% 1.73% 1.50% 1.48% 1.03% 1.71% 1.52%

Profit & Loss

Figures in Rs. Crores

Mar 2011 Mar 2012 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Revenue 0 6 408 981 1,543 2,112 2,645 3,194
Interest 0 2 159 460 684 964 1,156 1,396
0 17 230 561 964 1,015 1,324 1,705
Financing Profit -0 -13 19 -40 -105 133 165 93
Financing Margin % -1,100% -208% 5% -4% -7% 6% 6% 3%
Other Income 0 0 71 233 241 283 282 418
Depreciation 0 0 5 32 88 92 96 0
Profit before tax -0 -13 85 161 49 324 351 511
Tax % 0% 0% 0% 36% 34% 35% 31% 25%
Net Profit -0 -13 85 104 32 211 244 384
EPS in Rs 3.37
Dividend Payout % 0% 0% 0% 0% 0% 0% 0% 0%
Compounded Sales Growth
10 Years:231%
5 Years:51%
3 Years:27%
TTM:21%
Compounded Profit Growth
10 Years:111%
5 Years:35%
3 Years:129%
TTM:58%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:%
1 Year:%
Return on Equity
10 Years:%
5 Years:9%
3 Years:11%
Last Year:14%

Balance Sheet

Figures in Rs. Crores

Mar 2011 Mar 2012 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
6 61 423 1,006 1,006 1,006 1,053
Reserves -0 -13 288 1,006 1,038 1,248 1,691
Borrowings 0 44 1,638 6,700 10,781 12,980 15,923
0 14 65 533 485 529 647
Total Liabilities 5 105 2,414 9,245 13,310 15,763 19,315
0 4 11 274 280 236 210
CWIP 0 0 0 15 1 2 2
Investments 0 0 0 1,890 3,857 2,344 2,343
5 102 2,403 7,066 9,172 13,181 16,759
Total Assets 5 105 2,414 9,245 13,310 15,763 19,315

Cash Flows

Figures in Rs. Crores

Mar 2011 Mar 2012 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
-336 1,334 213 1,799 440 2,044
-9 -405 -11 -7 -72 -43
168 -563 -28 -1,706 908 -1,154
Net Cash Flow -177 366 173 86 1,276 847

Ratios

Figures in Rs. Crores

Mar 2011 Mar 2012 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
ROE % -49% 8% 2% 10% 10%

Shareholding Pattern

Numbers in percentages

Dec 2020 Mar 2021
82.05 81.98
1.34 1.02
11.72 12.77
4.88 4.23

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