1. At a Glance
If you ever wanted to see an NBFC sprint like Usain Bolt with a calculator, look no further than SBFC Finance Ltd.
A company born in 2008 and already sitting on a ₹11,169 Cr market cap, an AUM of ₹7,715 Cr, and a Net Interest Margin (NIM) of 10.2% — this is the kind of growth that makes even old-school bankers blink twice before signing their loan book.
Current Price: ₹102
P/E: 26.4 ×
Book Value: ₹31.3 → P/B 3.25 ×
ROE & ROCE: 11.6 % each
Debt/Equity: 1.8 ×
Promoter Holding: 52.8 %
PAT (Q3 FY26): ₹118 Cr (+34 % YoY)
Revenue (Q3 FY26): ₹426 Cr (+27.7 % YoY)
No dividend yet — because apparently, compounding is sexier than payouts.
2. Introduction
Some NBFCs lend money. SBFC Finance lends swagger.
Operating across 155 cities, 192 branches, and 16 states + 2 UTs, it has become the new poster child for MSME lending — those shop-owners, kirana legends, and mini-manufacturers who always have a strong business but zero paperwork.
From FY19 to H1 FY25, its AUM compounded at 46% CAGR, outpacing several mid-tier lenders who were still adjusting to RBI’s caffeine rules. While many legacy players are stuck discussing risk weightings, SBFC quietly co-originated loans with ICICI Bank (80:20 split) and ballooned its MSME loan book like it was on an espresso drip.
The stock listed in August 2023 via a ₹1,025 Cr IPO — ₹600 Cr fresh issue + ₹425 Cr OFS — and since then, it’s been doing what NBFCs dream of: growing, deleveraging, and staying meme-worthy.
3. Business Model – WTF Do They Even Do?
SBFC Finance is a systemically important non-deposit-taking NBFC (NBFC-ND-SI) specialising in:
- Secured MSME Loans (82.5% of AUM) — ticket size ~₹9.36 lakh. Think small factory owners pledging property instead of balance sheets.
- Gold Loans (14.5%) — ticket size ₹0.91 lakh. Because in India, when all else fails, gold bails.
- Others (3%) — unsecured bits and experiments that keep auditors alert.
Every loan is 100% in-house originated, meaning no shady DSAs whispering “Sir, instant approval.”
Its focus? Tier II & III cities where people have
business muscle but not enough paperwork to charm a bank manager.
Average borrower range: ₹5 – ₹30 lakh, contributing 87% of AUM. Borrowing cost: 9.33%, and growing comfort with NCDs (34.8% of borrowings).
If NBFCs were a thali, SBFC’s platter is half-property, half-gold, and fully spicy.
4. Financials Overview
Result Type: Quarterly Results (Q3 FY26 – Dec 2025)
EPS Annualised = 1.08 × 4 = ₹ 4.32
| Metric | Latest Qtr (Dec 25) | Same Qtr Last Yr (Dec 24) | Prev Qtr (Sep 25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 426 | 333 | 411 | +27.7 % | +3.6 % |
| EBITDA / Fin. Profit (₹ Cr) | 163 | 122 | 151 | +33.6 % | +7.9 % |
| PAT (₹ Cr) | 118 | 88 | 109 | +34.0 % | +8.3 % |
| EPS (₹) | 1.08 | 0.81 | 1.00 | +33.3 % | +8 % |
Commentary:
That’s not just growth — that’s compound caffeine. SBFC keeps expanding loan books while maintaining NIM > 10%. The MSME borrowers repay better than many corporate dinosaurs.
5. Valuation Discussion – Fair Value Range Only
Let’s crunch the holy trinity:
(A) P/E Method:
Annualised EPS ₹ 4.32. Sector P/E ≈ 19× – 31×.
→ Fair Value Range = ₹ 82 – ₹ 134 per share.
(B) EV/EBITDA Method:
EV = ₹ 16,852 Cr, EBITDA ≈ ₹ 1,095 Cr (TTM). EV/EBITDA = 15.4×.
Peers trade 12× – 18×.
→ Fair Range ≈ ₹ 90 – ₹ 135.
(C) DCF Method (Conservative 10% COE):
5-year PAT CAGR ≈ 57.6%. Assume future moderation to 25% CAGR.
→ Intrinsic Value range ≈ ₹ 95 – ₹ 145.
🎓 Disclaimer: This fair value range is for educational purposes only and is not investment advice.
6. What’s Cooking – News, Triggers, Drama
- Leadership Change Drama: Aseem
