Spandana Sphoorty Stock Price Analysis and Quick Research Report. Is Spandana Sphoorty 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.

Spandana Sphoorty stock price today is Rs 275.6. To understand the functions of the Spandana Sphoorty 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 Spandana Sphoorty is Rs 467.88 Cr and the compounded growth of profit in the past 3 years is 53.6502458343229 %. The PAT margin of Spandana Sphoorty is 20.3447 %.

• 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 Spandana Sphoorty , the EPS grew by 3674.593 % YOY. 

 Financial Ratios –

•  Return on Equity (ROE): Spandana Sphoorty has a average ROE track record. The ROE of Spandana Sphoorty is at 14.4134 % for the latest year.

• P/E Ratio: Relative valuation metrics like the P/E ratio can be used to see if the stock of Spandana Sphoorty is worth at the current levels at Rs 275.6. The stock is trading at a current P/E ratio of 12.8373 and the average historical P/E for the last 5 years was 81.956531987614.

• P/B ratio can be one of the best metrics to value such companies. Currently, Spandana Sphoorty is trading at a P/B of 0.7506 . The average historical P/B of Spandana Sphoorty for the last 5 years was 1.33051086410286. 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 Spandana Sphoorty is Rs 275.6. One can use valuation calculators of ticker to know if Spandana Sphoorty share price is undervalued or overvalued.