 "Spandana Sphoorty rallies 23% in one week, hit new high post Q2 results")
Shares of Spandana Sphoorty Financial (SSFL) surged 8 per cent to Rs 1,344 on the BSE in the intra-day trade on Thursday, rallying 23 per cent in one week after the micro finance company reported more-than-doubled net profit for the September quarter (Q2FY20).
The stock was trading at its highest level since listing on August 19, 2019. It has appreciated 95 per cent from its listing day low of Rs 690 per share. The company had issued shares at price of Rs 856 per share in the initial public offer (IPO).
In Q2FY20, SSFL reported 113 per cent year-on-year (YoY) growth in its normalised net profit at Rs 157 crore, on the back of strong operational performance. It had profit of Rs 74 crore in the year-ago quarter. The company’s profit before tax (PBT) grew 69 per cent to Rs 191 crore on YoY basis.
Net interest income (NII) grew 57 per cent YoY to Rs 243 crore from Rs 155 crore in the previous year quarter. Net interest margin (NIM) expanded by 240 basis points (bps) at 18.6 per cent from 16.2 per cent. Assets under management (AUM) rose 37 per cent YoY to Rs 5,407 crore from Rs 3,948 crore. The company’s gross non-performing assets (NPA) and net NPA ratio stood at 0.77 per cent and 0.09 per cent, respectively.
Analysts at JM Financial Institutional Securities revised target price of the SSFL upward to Rs 1,400 per share.
“Management has guided for AUM CAGR in the range of c.40 per cent for the next 3-4 years and expects SSFL to deliver consolidated PBT of Rs 750 crore in FY20E. We revised standalone AUM growth estimates to reflect 43 per cent CAGR in FY19-21E, and increased NII (as % AUM) estimates by 137 bps / 63 bps over FY20/21E. As a result, PBT estimates for FY20/21E have been revised upward by 17/18 per cent,” the brokerage firm said in a company update.
At 09:58 am, SSFL was trading 6 per cent higher at Rs 1,314 on the BSE, as compared to a 0.25 per cent rise in the S&P BSE Sensex. A combined 69,741 shares changed hands on the BSE and NSE so far.
The stock was trading at its highest level since listing on August 19, 2019. It has appreciated 95 per cent from its listing day low of Rs 690 per share. The company had issued shares at price of Rs 856 per share in the initial public offer (IPO).
In Q2FY20, SSFL reported 113 per cent year-on-year (YoY) growth in its normalised net profit at Rs 157 crore, on the back of strong operational performance. It had profit of Rs 74 crore in the year-ago quarter. The company’s profit before tax (PBT) grew 69 per cent to Rs 191 crore on YoY basis.
Net interest income (NII) grew 57 per cent YoY to Rs 243 crore from Rs 155 crore in the previous year quarter. Net interest margin (NIM) expanded by 240 basis points (bps) at 18.6 per cent from 16.2 per cent. Assets under management (AUM) rose 37 per cent YoY to Rs 5,407 crore from Rs 3,948 crore. The company’s gross non-performing assets (NPA) and net NPA ratio stood at 0.77 per cent and 0.09 per cent, respectively.
Analysts at JM Financial Institutional Securities revised target price of the SSFL upward to Rs 1,400 per share.
“Management has guided for AUM CAGR in the range of c.40 per cent for the next 3-4 years and expects SSFL to deliver consolidated PBT of Rs 750 crore in FY20E. We revised standalone AUM growth estimates to reflect 43 per cent CAGR in FY19-21E, and increased NII (as % AUM) estimates by 137 bps / 63 bps over FY20/21E. As a result, PBT estimates for FY20/21E have been revised upward by 17/18 per cent,” the brokerage firm said in a company update.
At 09:58 am, SSFL was trading 6 per cent higher at Rs 1,314 on the BSE, as compared to a 0.25 per cent rise in the S&P BSE Sensex. A combined 69,741 shares changed hands on the BSE and NSE so far.
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