ScoreWhy is ESAF Small Finance Bank Ltd ?
1
Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 0% signifying inadequate buffers against its risk based assets
- Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 0% signifying inadequate buffers against its risk based assets
- Bank has not been able to control its costs efficiently with a high Cost to Income ratio of 80.70%
2
The company has declared Negative results for the last 7 consecutive quarters
- NII(Q) Lowest at Rs 364.06 cr
- INTEREST EARNED(Q) Lowest at Rs 819.82 cr
- GROSS NPA(Q) Highest at 8.54%
3
With ROA of -2.2, it has a Very Expensive valuation with a 0.8 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -36.03%, its profits have fallen by -785.8%
4
Despite the size of the company, domestic mutual funds hold only 0% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
5
Below par performance in long term as well as near term
- Along with generating -36.03% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Bank)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is ESAF Small Fin for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
ESAF Small Fin
-20.88%
-1.10
32.84%
Sensex
8.49%
0.44
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Net Interest Income Growth (5y)
6.59%
Net Profit Growth (5y)
-206.77%
Advance to Deposit
85.48%
Capital Adequacy Ratio (Tier 1)
0
Gross NPA (latest)
5.64%
Gross NPA (avg)
6.14%
Coverage Ratio (avg)
50.94%
Cost to Income (avg)
65.60%
Net Interest Margin (avg)
9.13%
Operating Profit to Assets (avg)
10.81%
ROA (avg)
0.98%
Net Debt to Equity (avg)
0
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Price to Book Value
0.83
PEG Ratio
NA
Dividend Yield
NA
ROE (Latest)
-21.34%
ROA (Latest)
-1.38%
Net NPA to Book Value
31.34
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend10What is working for the Company
PBT LESS OI(Q)
Highest at Rs -260.26 cr.
GROSS NPA(Q)
Lowest at 5.64%
PAT(Q)
Highest at Rs 7.12 cr.
EPS(Q)
Highest at Rs 0.14
NET NPA(Q)
Lowest at 2.73%
-4What is not working for the Company
NON-OPERATING INCOME(Q)
is 2,950.60 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for ESAF Small Fin
Profit After Tax (PAT) - Quarterly
At Rs 7.12 cr has Grown at 104.8% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs -147.78 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs -260.26 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Gross NPA - Quarterly
Lowest at 5.64%
in the last five quartersMOJO Watch
Proportion of stressed loans given by the bank are falling
Gross NPA (%)
Profit After Tax (PAT) - Quarterly
Highest at Rs 7.12 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 0.14
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Net NPA - Quarterly
Lowest at 2.73%
in the last five quartersMOJO Watch
Proportion of stressed loans given by the bank are falling
Net NPA (%)
Here's what is not working for ESAF Small Fin
Non Operating Income - Quarterly
is 2,950.60 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Non Operating Income - Quarterly
Highest at Rs 269.39 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
