Healthy Net Interest Income (NII):- Company is able to maintain its NII, the year-on-year (Y-o-Y) growth in NII is 25.9%. The 5-year CAGR of Net Interest Income stands out at 25.2%
Robust Profits:- The Profit after tax has shown significant Y-o-Y growth of 49.6%. The 5-year CAGR growth of profit stands out at 37.5%
Growth in Loan Book:- The Y-o-Y growth in Loan Book is 17.1%. The 5-year CAGR growth of Loan Book stands out at 24.0%
Abundantly Liquid:- The Capital Adequacy Ratio (CAR) of the company in FY23 stands out at 18.87% which is way above regulatory requirement of 9.0%
Backed by Big Financial Institutions:- HDFC Life Insurance Company Limited owns 3.94% stake in the company. Also, ICICI Prudential Life Insurance Company Limited owns 3.74% stake in the company along with other institutions like Oman India Joint Investment Fund II, Amicus Capital Private Equity I LLP, Small Industries Development Bank of India, PI Ventures LLP in combination holds a total of 30.02% stake in the company
Investment Thesis:- With a P/B multiple of 2.5x for Rs 415 compared to its competitors (Suryoday Small Finance Bank, Ujjivan Small Finance and Equitas Small) P/B multiple of 2.0x company and P/E multiple of 16.8x compared to its competitors P/E multiple of 12.1x is quite overvalued. Though, on 17 June 2023 Capital Small Finance Bank received funding of Rs 50.5 Cr from Max Life Insurance Company Limited for Rs 478 and the current price of Rs 446
Quantity
Invest
Min. Investment: ₹