Esaf Small Finance Bank Share Price Performance and Trends

Esaf Small Finance Bank's share price has shown a steady growth trend over the years, with a significant increase in its market capitalization.

The bank's market capitalization has grown from ₹1,500 crores to ₹3,500 crores in just two years, a 133% increase.

Its share price has consistently outperformed the benchmark indices, with a year-to-date return of 25% compared to the Nifty's 15% return.

The bank's strong fundamentals and growing customer base have contributed to its impressive share price performance.

ESAF Small Finance Bank Ltd is a prominent financial institution committed to fostering financial inclusion and empowering underserved communities.

The bank was established in 2016 with a focus on providing banking services to the unbanked and underbanked segments.

It has rapidly expanded its reach across India, offering a diverse range of products and services.

ESAF SFB employs innovative technology to enhance accessibility and efficiency, making banking services more convenient for its customers.

The bank is known for its customer-centric approach, actively contributing to sustainable development and community upliftment.

With a strong emphasis on social responsibility, ESAF SFB is a trusted partner in the financial landscape.

The financial performance of ESAF Small Finance Bank has been on an upward trend, with a significant increase in interest earned and other income over the years. The bank's total income has grown from ₹48 crore in Mar 2017 to ₹4477 crore in TTM.

The bank's operating profit has also seen a substantial increase, from ₹2 crore in Mar 2017 to ₹570 crore in Mar 2024. However, the profit after tax has been fluctuating, ranging from ₹1 crore in Mar 2017 to ₹28 crore in TTM.

Here's a brief snapshot of the bank's key financial metrics:

The bank's growth rates have also been impressive, with a 40% CAGR in operating profit and a 41% CAGR in profit after tax over the past year.

Let's dive into the Profit & Loss section of ESAF Small Finance's financial performance.

Their interest expenses have been steadily increasing, from ₹315 crore in Mar 2018 to ₹1449 crore in Mar 2024.

Total income has been consistently growing, reaching ₹4477 crore in the trailing twelve months (TTM).

Operating expenditure has also been on the rise, from ₹306 crore in Mar 2018 to ₹1649 crore in Mar 2024.

Interestingly, provisions and contingencies have been fluctuating, ranging from ₹34 crore in Mar 2018 to ₹873 crore in Mar 2024.

Operating profit has seen a significant increase, from ₹44 crore in Mar 2018 to ₹570 crore in Mar 2024.

Here's a breakdown of their profit before and after tax for the past few years:

Their adjusted earnings per share have also been increasing, from ₹0.9 in Mar 2018 to ₹8.3 in Mar 2024.

The balance sheet is a snapshot of a company's financial situation at a specific point in time, and ESAF Small Finance's balance sheet is no exception. It's a detailed breakdown of the company's assets, liabilities, and equity.

The company's shareholder's funds have been steadily increasing, rising from 306 crores in March 2017 to 2492 crores in March 2024. This is a significant growth, indicating that the company is doing well financially.

Deposits have also been on the rise, from 409 crores in March 2017 to 19868 crores in March 2024. This is a substantial increase, showing that the company has been able to attract more customers and grow its customer base.

Borrowings, on the other hand, have been decreasing, from 2053 crores in March 2017 to 3223 crores in March 2024. This is a good sign, as it indicates that the company is reducing its debt and becoming more financially stable.

Here's a breakdown of the company's assets and liabilities:

The company's total assets have been steadily increasing, from 2938 crores in March 2017 to 26087 crores in March 2024. This is a significant growth, indicating that the company is expanding its operations and increasing its assets.

Cash Flow is a crucial aspect of any company's financial performance. The data from ESAF Small Finance's cash flow statement reveals some interesting trends.

The company's opening cash and cash equivalents have fluctuated over the years, ranging from 0 in Mar 2017 to 1819 in Mar 2021, and finally settling at 766 in Mar 2023.

One notable aspect of ESAF Small Finance's cash flow is the significant increase in cash flow from operating activities. In Mar 2017, the company reported a negative cash flow of -1393, but by Mar 2021, this had turned into a positive cash flow of 1127.

Here's a breakdown of the company's cash flow from operating, investing, and financing activities:

The company's net cash inflow or outflow has also varied over the years, ranging from a positive 492 in Mar 2017 to a negative 308 in Mar 2022.

Let's take a closer look at the financial performance of ESAF Small Finance Bank Ltd. One of the key areas to examine is the bank's ratios, which provide valuable insights into its financial health and stability.

The bank's Net Interest Margin (NIM) has been steadily increasing, reaching 9.38% in both 2023 and 2024. This suggests that the bank is successfully managing its interest income and expenses.

The bank's Return on Assets (ROA) has also shown improvement, with a growth rate of 1.59% in 2023 and 1.84% in 2024. This indicates that the bank is generating more profits from its assets.

Here's a breakdown of the bank's key ratios:

The bank's Return on Equity (ROE) has also seen significant growth, reaching 20.29% in 2024. This indicates that the bank is generating substantial profits from its equity.

The bank's Current Ratio has been declining, reaching 0.28 in 2024. This suggests that the bank's liquidity position may be a concern.

The bank's Quick Ratio has also been declining, reaching 16.22 in 2024. This indicates that the bank may be facing challenges in managing its short-term liquidity.

The bank's Cash/Deposits ratio has been declining, reaching 0.07 in 2024. This suggests that the bank may be relying more heavily on deposits to fund its operations.

The bank's CASA (Current Account Savings Account) percentage has been increasing, reaching 22.66% in 2024. This indicates that the bank is successfully attracting low-cost deposits.

The bank's Advances Growth has been declining, reaching 31.38% in 2024. This suggests that the bank may be facing challenges in growing its loan book.

The bank's Interest Earned Growth has been increasing, reaching 33.81% in 2024. This indicates that the bank is successfully managing its interest income.

The bank's Net Profit Growth has been increasing, reaching 40.76% in 2024. This suggests that the bank is generating more profits from its operations.