SBFC Finance Ltd.
NSE: SBFCSBFC Finance Ltd.: A 30-second snapshot
SBFC Finance, a small-ticket secured lending NBFC, trades at ₹94.01 — below its 200-DMA of ₹102.32 and down 2.1% over the past year — with a trailing PE of 22.9 and a forward PE of 18.8. The business has compounded revenues at 24.4% and earnings at 29% over five years, but has not generated positive FCF in any recorded year, reflecting the capital-intensive nature of its loan-book growth. Debt-to-equity of 192.3 is characteristic of the NBFC lending model, where borrowings fund the asset book.
P/E
22.9
Forward P/E
18.8
ROE
+13.0%
Debt / Equity
192.25
Profit Margin
+44.4%
Div. Yield
—
5Y ROE > 15%
0/5
5Y FCF > 0
0/5
Quality
60/100
Recent context
- ·No news articles were retrieved for SBFC Finance in the current data window, leaving the recent corporate and regulatory narrative unverifiable from this dataset.
- ·The 3-month price change of +3.28% and a neutral RSI of 50.2 suggest near-term price action has stabilised after the broader 12-month decline of 2.1%.
- ·With a small analyst coverage base of 7 analysts and a mean rating of 1.14 on a 1–5 scale (lower = more constructive), the formal research footprint for this stock is limited relative to large-cap peers in the same sector.
Strengths
- +5Y revenue CAGR of 24.4% and earnings CAGR of 29% place SBFC among the faster-growing names in its sector peer set.
- +Forward PE of 18.8 represents a compression from the trailing PE of 22.9, implying the market is pricing in continued earnings growth.
- +At a quality score of 62, SBFC ranks #1 among its six listed peers (next-best: AXISBANK and BAJFINANCE at 53), suggesting relatively stronger composite fundamentals on the scoring model used.
- +Profit margin of 44.35% reflects the spread-driven economics typical of a secured lending franchise, and is a high absolute number for the sector.
Weaknesses
- −ROE of 13.04% has never exceeded 15% in recorded history; the stock ranks last (5 of 6) on ROE among peers, trailing BAJFINANCE (17.91%), HDFCBANK (13.82%), and AXISBANK (13.15%).
- −FCF has been negative in every recorded year and the debt trend is classified as rising, indicating that growth has been entirely externally funded — a pattern that elevates refinancing sensitivity.
- −Fundamental consistency score of 35 out of 100 is the weakest in the peer group, reflecting the absence of stable, above-threshold profitability persistence across the historical window.
- −Price has remained below the 200-DMA (₹102.32) with a 52-week drawdown of 23.6%; the stock is 8.1% below its long-term moving average as of the most recent close.
Open questions
- ?Does SBFC's negative FCF history reflect deliberate loan-book reinvestment, and at what AUM scale or NIM level would the business be expected to turn FCF-positive?
- ?Given that ROE has not crossed 15% in any recorded year, what structural factors — cost of funds, credit costs, or leverage constraints — are most responsible, and how do these compare to peers growing at similar rates?
- ?The quality score ranking (#1 among peers) and the ROE ranking (#5 of 6) diverge sharply — which metric better captures the durability of SBFC's competitive position in small-ticket secured lending?
- ?How exposed is SBFC's liability side to interest rate cycles, and what has been the historical trend in net interest margins across rising and falling rate environments?
Peer comparison: Banking
Ranks 1 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| SBFC | SBFC Finance Ltd.You're viewing | 22.9 | +13.0% | 62 |
| Industry avg | across 5 peers | 32.0 | +14.2% | 39 |
| AXISBANK | Axis Bank Ltd. | 15.0 | +13.2% | 53 |
| BAJFINANCE | Bajaj Finance Ltd. | 29.8 | +17.9% | 53 |
| HDFCBANK | HDFC Bank Ltd. | 16.8 | +13.8% | 47 |
| BAJAJFINSV | Bajaj Finserv Ltd. | 29.6 | +14.6% | 23 |
| HDFCLIFE | HDFC Life Insurance Company Ltd. | 69.0 | +11.3% | 20 |
Technical state
Current price
₹94.01
SMA 50
₹91.85
SMA 200
₹102.32
RSI (14)
50.2 (neutral)
From 52w high
-23.6%
1Y return
-2.1%
3M return
+3.3%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- mediumFCF has been negative in all available years (0 of recorded history FCF-positive) and debt trend is classified as rising, meaning growth has been funded by external capital without generating surplus cash.
- mediumROE of 13.04% has not exceeded 15% in any recorded year (roeYearsAbove15 = 0); fundamental consistency score is 35 out of 100, the lowest in the peer set by a wide margin.
- mediumPrice of ₹94.01 is below the 200-DMA (₹102.32) by approximately 8.1%, and is down 2.11% over the past 12 months; the stock has not reclaimed its 52-week high, sitting 23.6% below it.
- lowZero news articles were retrieved for this stock; sentiment analysis is based on no data, leaving recent narrative risk unquantified.
- lowAnalyst consensus of 1.14 across only 7 analysts (1–5 scale, lower = more constructive) represents a narrow coverage base; small analyst pools can shift materially on a single rating change.
Cross-section contradictions
- 5Y revenue growth of 24.4% and earnings growth of 29% coexist with 0 FCF-positive years and a consistency score of 35 — strong topline expansion has not translated into quality-persistence metrics.
- SBFC ranks #1 on quality score among the 6 peers (62 vs next-best 53) yet ranks last (5 of 6) on ROE (13.04%) — the composite quality score and the ROE-based peer ranking point in opposite directions.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 12 May 2026 · rotates through NIFTY 500 every ~5 days