ICICI Securities has added Spandana Sphoorty Financial with a target price of Rs 460.
Spandana Sphoorty Financial Ltd. gets an add call from ICICI Securities with a target price of Rs 460. Spandana Sphoorty Financial Ltd. is now trading at Rs 394.45. The expert estimates that the price of Spandana Sphoorty Financial Ltd. will reach its objective in one year.
Spandana Sphoorty Financial Ltd., founded in 2003, is a Mid Cap business in the NBFC sector with a market capitalization of Rs 2547.67 crore.
Interest, Income From Sale Of Shares & Securities, Bad Debts Recovery, and Commission are some of Spandana Sphoorty Financial Ltd.’s important products/revenue segments for the year ending 31-Mar-2021.
The firm reported a Consolidated Total Income of Rs 396.19 Crore for the quarter ended September 30, 2021, down -8.90 percent from the previous quarter’s Total Income of Rs 434.90 Crore but up 11.88 percent from the same quarter last year’s Total Income of Rs 354.11 Crore. In the most recent quarter, the company posted a net profit after tax of Rs -58.67 crore.
Reasons for Investing
As of September 21, the total provision buffer stood at Rs8 billion, or 12.4% of AuM. With 50 percent coverage on current NPLs, 17 percent restructured book, PAR 31-60 at 2.4 percent, and the probability of a third-wave, the brokerage raises its credit cost estimate to 8% / 3% in FY22/23e, up from 4% / 2% before. Similarly, the brokerage lowers its profits forecast for FY22/23e by 80% / 40% and lowers its target price to Rs460 (earlier Rs840).
As of September 30, 2021, promoters controlled 62.29 percent of the firm, FIIs 12.43 percent, and DIIs 4.55 percent.
economictimes.com is the source for this information.
Spandana Sphoorty Financial declines 11% in one week to a 52-week low.
In Wednesday’s intra-day trade on the BSE, shares of Spandana Sphoorty Financial (SSFL) reached a 52-week low of Rs 488, down 3%. The stock of India’s second-largest microfinance institution (MFI) was trading lower for the fifth day in a row, down 11%, due to a delay in the release of financial results for the September 2021 quarter (Q2FY22) due to recent management changes, including the resignation of managing director Padmaja Reddy and attrition in the information technology team.
The shares of the non-banking loan firm has dropped 41% in the last week from its 52-week high of Rs 830 set on January 14, 2021. On April 24, 2020, it touched an all-time low of Rs 403.50 and an all-time high of Rs 1,400 on November 8, 2019. On August 19, 2019, SSFL made its stock market debut. By issuing shares at a price of Rs 856 per share, the company raised Rs 1,200 crore.
As a publicly traded business, the corporation must report quarterly financial data for Q2FY22 to the stock markets within 45 days of the quarter’s end, or by November 14, 2021. However, SSFL told BSE that it was unable to submit the aforementioned findings within the specified time frame.
The financial results for the quarter ending September 30, 2021 will be submitted with an unavoidable delay. “We’ve had some managerial changes recently. Our previous managing director just resigned, as reported to the stock markets on November 02, 2021. “Our information technology staff has also seen attrition since then,” SSFL stated.
Following the resignation of Ms. Padmaja Gangireddy, Founder & Managing Director, SSFL announced a change in leadership structure on November 2, 2021. As part of the transition plan, the board confirmed the appointment of a distinguished industry veteran as its new Managing Director and Chief Executive Officer, as well as the formation of a management committee to offer strategic direction to the company operations in the interim.
business-standard.com is the source for this information.
Spandana Sphoorty’s stock has risen by 29% in three days as a result of the buzz. Axis Bank may purchase a share in the company.
Spandana Sphoorty Financial has surged 29% since Wednesday’s closure on speculation that the business might be acquired by Axis Bank, a renowned private sector lender.
Moneycontrol reported on Thursday that Axis Bank is interested in buying a controlling share in the firm, while The Economic Times reported on Friday that the company, along with Arohan Financial Services, are potential takeover targets for Axis Bank.
Axis Bank is trying to expand its rural reach, and purchasing a microfinance lender with a wider choice of products in rural regions is considered as a good fit. The lender’s microfinance lending vertical already has over 1.5 million microfinance borrowers.
In a statement to the stock markets, Spandana Sphoorty stated that it was ignorant of the source of the Moneycontrol storey and that “as a matter of business policy, we do not comment on media speculation.”
CLSA Asia Pacific Markets said in a note on Monday that an all-share sale based on Friday’s closing price would result in a swap ratio of 0.99 for Spandana Sphoorty’s investors.
According to the brokerage business, the merged entity’s earnings after tax would climb by 2% in 2020-21, while the return on equity will improve by 0.1 percent. However, it stated that the merged entity’s price-to-book value will decrease by 0.3 percent to 1.98 times.
On Monday, shares of the non-bank loan company suffered profit booking, finishing 1.9 percent down at Rs. 732 on the National Stock Exchange.
economictimes.com is the source for this information.
ICICI Securities recommends buying Spandana Sphoorty with a target price of Rs 690.
In its research report dated September 03, 2020, ICICI Securities is positive on Spandana Sphoorty’s recommended buy rating on the company, with a target price of Rs 690.
Spandana Sphoorty Financial (Spandana) continues its proactive strategy to bolstering its balance sheet in Q1FY20, adding Rs0.9 billion in Covid-19-related provisions (130 basis points of AuM) and increasing its cumulative contingency buffer to 320 basis points, the most in the MFI industry. Notably, collection efficiency has consistently increased, rising from lows of 2% in April to as high as 92 percent on August 30th, with customer activation continuing strong at 87 percent.
Higher rural-based customers (95 percent), a bi-weekly collection model, the ability to extend emergency loans to needy borrowers, and D) effective communication with borrowers about the cost of the moratorium and the benefits of maintaining a good payment track record all contributed to better-than-industry collections.
While a 13 percent idle client base offers a short-term risk to asset quality, 95 percent of districts have diversified activities.
moneycontrol.com is the source for this information.
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