Suryoday Small Finance Bank IPO - Valuations Factor In Business Scalability: Prabhudas Lilladher

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Prabhudas Lilladher Report.Prabhudas Lilladher recommends AVOID to Suryoday Small Finance Bank Ltd. IPO as return ratios remain sub-optimal, the lower collection efficiency of 82% in December 2020 and high gross non-performing assets (pro-forma) of 9% remain a risk to profitability.We believe valuations of 2.2x 9MFY21 BV & 2.0x FY21E BV factors in the business scalability and likely could have better entry point ahead.SSFB focuses on the underbanked & underserved lending market with a relatively small AUM at Rs 39.0 billion.It has been diversifying from MFI (70% of loans with Joint Liability Group model) towards secured loans like CV, affordable housing and business loans which now account for 16% of loans.SSFB is getting listed to meet RBI guidelines with a fresh issue of Rs 2.4 billion and OFS of Rs 3.3 billion and unlike Equitas/Ujjivan, SSFB does not have any issue of holdco structure..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Suryoday Small Finance Bank IPO - Valuations Factor In Business Scalability: Prabhudas Lilladher

Suryoday Small Finance Bank IPO - Valuations Factor In Business Scalability: Prabhudas Lilladher

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