SBFC Finance Stock Price Analysis and Quick Research Report. Is SBFC Finance an attractive stock to invest in?

Around 2% of India's total population invests in financial assets. The mutual fund industry's penetration in India is close to 7% (Based on the number of PAN cardholders). This under penetration offers a huge opportunity for the industry to grow.

Migration to financial savings, wider distribution and sustainable performance are expected to enable growth in the industry.

Also, increasing financial literacy among investors, digitization and the number of mediums available tend to attract more investors to invest in the financial markets.

SBFC Finance stock price today is Rs 110.44. To understand the functions of the SBFC Finance better, you must go through the following points:

Key Financials –

• Profitability: Profit margin (PAT margin) of the company shows how well a company controls its cost. It is one of the important indicators to show the financial health of the company. Net profit of SBFC Finance is Rs 237.021 Cr and the compounded growth of profit in the past 3 years is 40.7464508590513 %. The PAT margin of SBFC Finance is 23.2707 %.

• EPS growth: Investors should ensure the EPS figure is growing faster than revenue numbers because it indicates company management is increasing the efficiency with which it runs the company. In SBFC Finance , the EPS grew by 31.3142 % YOY. 

 Financial Ratios –

•  Return on Equity (ROE): SBFC Finance has a average ROE track record. The ROE of SBFC Finance is at 10.6612 % for the latest year.

• P/E Ratio: Relative valuation metrics like the P/E ratio can be used to see if the stock of SBFC Finance is worth at the current levels at Rs 110.44. The stock is trading at a current P/E ratio of 37.0071 and the average historical P/E for the last 5 years was 7.40142.

• P/B ratio can be one of the best metrics to value such companies. Currently, SBFC Finance is trading at a P/B of 3.745 . The average historical P/B of SBFC Finance for the last 5 years was 0.63808. This can be compared with the Market price per share in order to know if the stock is undervalued or overvalued.

• Share Price: - The current share price of SBFC Finance is Rs 110.44. One can use valuation calculators of ticker to know if SBFC Finance share price is undervalued or overvalued.