Equitas Small Finance Bank Ltd

₹ 54.6 2.63%
02 Feb 12:52 p.m.
About

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. [1] [2]

Key Points

Geographical diversification
It has presence in 17 states & UTs with 861 Banking outlets & 330 ATMs with clientele of 40 lacs+ [1]
Loan Book Mix
It provides loans under 6 categories
Small Business Loans- SBL includes housing & agricultural loans as well. This contributes 43% of total advances (Dec 20) increased from 34% (Mar 18).
Vehicle Finance- It is 25% of total advances (Dec 20) reduced from 29% (Mar 18)
Microfinance- It contributes 20% of total advances (Dec 20) reduced from 27% (Mar 18)
Micro & Small Enterprise Finance- It contributes 6% of total advances (Dec 20) grown from 5% (Mar 18).
Corporate Loans- It Contributes 5% of total advances (Dec 20) grown from 2.5% (Mar 18).
Others like loan against gold, OD, an unsecured business loan is 1% of total advances (Dec 20) reduced from 2% (Mar 18) [2] [3]

  • Market Cap 6,851 Cr.
  • Current Price 54.6
  • High / Low 63.9 / 37.4
  • Stock P/E 15.6
  • Book Value 33.9
  • Dividend Yield 0.00 %
  • ROCE 7.23 %
  • ROE 7.35 %
  • Face Value 10.0

Pros

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 9.68% over last 3 years.
  • Earnings include an other income of Rs.560 Cr.

* The pros and cons are machine generated. Pros / cons are based on a checklist to highlight important points. Please exercise caution and do your own analysis.

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 Jun 2021 Sep 2021 Dec 2021 Mar 2022 Jun 2022 Sep 2022
Revenue 639 677 726 721 798 857 818 819 844 901 896 940 1,002
Interest 289 293 302 317 336 373 370 358 360 360 343 360 393
329 351 439 360 380 489 474 550 579 529 540 587 602
Financing Profit 22 32 -15 44 81 -6 -26 -89 -95 12 13 -7 7
Financing Margin % 3% 5% -2% 6% 10% -1% -3% -11% -11% 1% 1% -1% 1%
64 86 74 30 55 155 178 104 152 134 148 133 145
Depreciation 0 0 0 0 0 0 0 0 0 0 0 0 0
Profit before tax 86 118 58 74 136 149 153 14 57 146 161 127 152
Tax % 42% 20% 26% 22% 24% 26% 26% 16% 28% 26% 26% 23% 24%
Net Profit 49 94 43 58 103 111 113 12 41 108 120 97 116
EPS in Rs 0.49 0.89 0.41 0.55 0.98 0.97 0.99 0.10 0.36 0.94 0.95 0.77 0.93
Gross NPA % 2.88% 3.01% 2.72% 2.86% 2.48% 4.16% 3.59% 4.76% 4.82% 4.39% 4.24% 4.10% 3.91%
Net NPA % 1.63% 1.73% 1.50% 1.48% 1.03% 1.71% 1.52% 2.38% 2.46% 2.38% 2.47% 2.15% 1.97%
Raw PDF

Profit & Loss

Figures in Rs. Crores

Mar 2011 Mar 2012 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 TTM
Revenue 0 6 408 981 1,543 2,112 2,645 3,194 3,460 3,740
Interest 0 2 159 460 684 964 1,150 1,396 1,421 1,456
0 17 230 561 964 1,015 1,304 1,628 2,123 2,258
Financing Profit -0 -13 19 -40 -105 133 191 170 -84 26
Financing Margin % -1,100% -208% 5% -4% -7% 6% 7% 5% -2% 1%
0 0 71 233 241 283 282 418 538 560
Depreciation 0 0 5 32 88 92 96 76 75 0
Profit before tax -0 -13 85 161 49 324 377 511 378 586
Tax % 0% 0% 0% 36% 34% 35% 35% 25% 26%
Net Profit -0 -13 85 104 32 211 244 384 281 441
EPS in Rs -3.96 -2.13 2.01 1.04 0.32 2.09 2.31 3.37 2.24 3.59
Dividend Payout % 0% 0% 0% 0% 0% 0% 0% 0% 0%
Compounded Sales Growth
10 Years: 88%
5 Years: 29%
3 Years: 18%
TTM: 12%
Compounded Profit Growth
10 Years: 37%
5 Years: 22%
3 Years: 10%
TTM: 59%
Stock Price CAGR
10 Years: %
5 Years: %
3 Years: %
1 Year: -7%
Return on Equity
10 Years: %
5 Years: 8%
3 Years: 10%
Last Year: 7%

Balance Sheet

Figures in Rs. Crores

Mar 2011 Mar 2012 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
6 61 423 1,006 1,006 1,006 1,053 1,139 1,252
Reserves -0 -13 288 1,006 1,038 1,248 1,691 2,257 2,994
0 44 1,638 6,700 10,781 12,980 15,923 20,557 21,567
0 14 65 533 485 529 628 755 1,139
Total Liabilities 5 105 2,414 9,245 13,310 15,763 19,296 24,708 26,952
0 4 11 274 280 236 210 184 189
CWIP 0 0 0 15 1 2 2 1 11
Investments 0 0 0 1,890 3,857 2,344 2,343 3,705 4,450
5 102 2,403 7,066 9,172 13,181 16,740 20,818 22,302
Total Assets 5 105 2,414 9,245 13,310 15,763 19,296 24,708 26,952

Cash Flows

Figures in Rs. Crores

Mar 2011 Mar 2012 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
-336 1,334 213 1,799 440 2,044 159
-9 -405 -11 -7 -72 -43 -89
168 -563 -28 -1,706 908 -1,154 -1,317
Net Cash Flow -177 366 173 86 1,276 847 -1,246

Ratios

Figures in Rs. Crores

Mar 2011 Mar 2012 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
ROE % -49% 8% 2% 10% 10% 13% 7%

Shareholding Pattern

Numbers in percentages

Dec 2020 Mar 2021 Jun 2021 Sep 2021 Dec 2021 Mar 2022 Jun 2022 Sep 2022 Dec 2022
82.05 81.98 81.75 81.55 81.36 74.59 74.52 74.50 74.48
1.34 1.02 0.51 0.80 0.74 3.62 4.09 4.26 4.08
11.72 12.77 13.62 12.83 12.78 16.69 15.59 15.36 15.34
4.88 4.23 4.12 4.81 5.12 5.10 5.80 5.86 6.09

* The classifications might have changed from Sep'2022 onwards. The new XBRL format added more details from Sep'22 onwards.

Classifications such as banks and foreign portfolio investors were not available earlier. The sudden changes in FII or DII can be because of these changes.

Click on the line-items to see the names of individual entities.

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