Capital Small Finance Bank Limited (CAPITALSFB) AI Stock Analysis

• Market Cap: ₹12.41B
• Dividend Yield: 1.87%
• Average Volume (3M): 2.14K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.52
• Revenue Growth: 13.76%
• EPS Growth: 11.77%
• Country: IN
• Employees: 2,059
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 7.70
• Shares Outstanding: 45,286,186
• 10 Day Avg. Volume: 3,253
• 30 Day Avg. Volume: 2,144
• PEG Ratio: -1.90
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 1.21
• P/FCF Ratio: 4.64
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ₹313.00 ▲(12.61% Upside)

Capital Small Finance Bank Limited demonstrates strong financial performance with solid revenue growth and profitability, which is the most significant factor in its overall score. The technical analysis indicates a neutral trend, while the valuation suggests the stock may be undervalued, providing potential upside. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial resilience and provides flexibility for future investments.

Cash Flow Improvement

Improved cash generation enhances liquidity and supports sustainable growth and investment opportunities.

Negative Factors

Operational Efficiency

Suboptimal operational efficiency can limit profitability growth, necessitating strategic improvements to enhance margins.

Debt Levels

Higher debt levels could pose risks to financial stability if not managed, impacting long-term growth prospects.

Cash Conversion Efficiency

Improving cash conversion efficiency is crucial for maximizing liquidity and ensuring robust financial health.

Capital Small Finance Bank Limited Business Overview & Revenue Model

Company Description

Capital Small Finance Bank Limited (CAPITALSFB) is a prominent banking institution in India, focused on providing financial services to underserved segments of the population. Established to enhance financial inclusion, the bank operates primarily in the small finance sector, offering a range of products including savings and current accounts, fixed deposits, personal and business loans, and microfinance solutions. CAPITALSFB aims to cater to the needs of small businesses and individuals, promoting economic growth and stability in local communities.

How the Company Makes Money

Capital Small Finance Bank Limited generates revenue through multiple streams typical of banking institutions. The primary source of income is the interest earned on loans issued to customers, which typically carries a higher rate than the interest paid to depositors. The bank offers various types of loans, including personal, business, and microfinance loans, which are tailored to meet the needs of small and medium enterprises as well as individual borrowers. Additionally, CAPITALSFB earns fee-based income from services such as account maintenance fees, transaction fees, and charges for ancillary services like fund transfers and insurance products. The bank also benefits from partnerships with local businesses and community organizations, which help in expanding its customer base and enhancing service delivery, thereby contributing to its overall earnings.

Capital Small Finance Bank Limited Financial Statement Overview

Summary

Capital Small Finance Bank Limited exhibits strong financial performance with consistent revenue growth and healthy profitability. The balance sheet reflects a solid capital structure with manageable debt levels. Cash flow generation is improving, although there is potential to further enhance cash conversion efficiency.

Income Statement

The company has demonstrated strong growth in total revenue, with a notable increase from previous years. The gross profit margin is robust, indicating effective cost management. The net profit margin is healthy, reflecting good overall profitability. However, the EBIT and EBITDA margins suggest room for improvement in operational efficiency.

Balance Sheet

The balance sheet shows a solid position with a healthy equity ratio, indicating a strong capital base. The debt-to-equity ratio is relatively low, suggesting conservative leverage. Return on equity is impressive, reflecting efficient use of shareholders' equity. However, there is a potential risk with significant debt levels that need to be monitored.

Cash Flow

The cash flow analysis shows a positive trend in operating cash flow, supporting good liquidity. Free cash flow has improved significantly, indicating better cash generation capability. However, the operating cash flow to net income ratio suggests there is room to enhance cash conversion efficiency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	10.29B	9.95B	8.62B	7.25B	6.32B	5.57B
Gross Profit	5.13B	4.96B	4.13B	3.71B	3.09B	2.44B
EBITDA	1.77B	1.92B	1.65B	1.45B	786.85M	572.76M
Net Income	1.34B	1.32B	1.12B	936.00M	625.69M	407.84M
Balance Sheet
Total Assets	111.13B	101.08B	92.95B	79.91B	71.54B	63.71B
Cash, Cash Equivalents and Short-Term Investments	16.06B	10.42B	13.59B	9.30B	10.19B	12.90B
Total Debt	4.88B	3.21B	4.72B	7.21B	4.98B	6.17B
Total Liabilities	97.37B	87.67B	80.98B	73.80B	66.38B	59.20B
Stockholders Equity	13.76B	13.40B	11.97B	6.11B	5.16B	4.51B
Cash Flow
Free Cash Flow	0.00	2.58B	1.72B	551.20M	-2.24B	1.61B
Operating Cash Flow	0.00	2.79B	1.90B	748.80M	-2.11B	1.74B
Investing Cash Flow	0.00	-564.50M	-1.62B	-2.02B	-131.54M	-124.21M
Financing Cash Flow	0.00	-1.55B	11.40B	2.22B	-1.20B	1.97B

Capital Small Finance Bank Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 277.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CAPITALSFB, the sentiment is Neutral. The current price of 277.95 is above the 20-day moving average (MA) of 274.73, below the 50-day MA of 278.61, and below the 200-day MA of 284.58, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 51.24 is Neutral, neither overbought nor oversold. The STOCH value of 61.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:CAPITALSFB.

Capital Small Finance Bank Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAPITALSFB	72 Outperform	₹12.41B	9.17	―	1.87%	13.76%	11.77%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
UJJIVANSFB	60 Neutral	₹100.69B	24.13	―	2.75%	6.15%	-64.12%
EQUITASBNK	56 Neutral	₹74.80B	―	―	1.56%	10.02%	-120.18%
ESAFSFB	45 Neutral	₹13.47B	―	―	2.63%	-8.71%	-2192.08%
UTKARSHBNK	45 Neutral	₹29.45B	―	―	2.54%	2.35%	-261.81%

Capital Small Finance Bank Limited Corporate Events

Capital Small Finance Bank Schedules Earnings Call for Q2 & H1FY26

Capital Small Finance Bank Limited has announced an upcoming earnings conference call scheduled for October 30, 2025, where senior management will discuss the financial and operational performance for the second quarter and first half of the fiscal year 2026. This event is significant for stakeholders as it provides insights into the bank’s performance and strategic direction, potentially impacting investor decisions and market perceptions.

Capital Small Finance Bank Concludes E-Voting for Director Appointment

Capital Small Finance Bank Limited has concluded its postal ballot process, which was conducted entirely through remote e-voting. The primary agenda was the approval of Mr. Bhavdeep Sardana as a Non-Executive Non-Independent Director on the Board of the Bank. This move aligns with regulatory compliance and reflects the bank’s commitment to enhancing its governance structure. The successful completion of the e-voting process indicates efficient shareholder engagement and adherence to modern digital practices, potentially strengthening the bank’s operational and strategic positioning.

Capital Small Finance Bank Concludes Postal Ballot for Board Appointment

Capital Small Finance Bank Limited has concluded a postal ballot process, conducted entirely through remote e-voting, to approve the appointment of Mr. Bhavdeep Sardana as a Non-Executive Non-Independent Director. This move, approved by the members, aligns with regulatory compliance and reflects the bank’s commitment to strengthening its board with experienced leadership, potentially enhancing its strategic direction and governance.

Capital Small Finance Bank Appoints Bhavdeep Sardana as Non-Executive Director

Capital Small Finance Bank Limited has announced the appointment of Bhavdeep Sardana as a Non-Executive Non-Independent Director on its Board, effective from August 4, 2025. This strategic appointment, approved by shareholders via a postal ballot, is expected to leverage Sardana’s extensive experience in the agro-based food industry to enhance the bank’s governance and strategic direction over the next eight years.