ESAF Small Finance Bank Limited (ESAFSFB) AI Stock Analysis

• Market Cap: ₹15.54B
• Dividend Yield: 2.32%
• Average Volume (3M): 46.24K
• Price to Earnings (P/E): 66.2
• Beta (1Y): 1.16
• Revenue Growth: -4.34%
• EPS Growth: -285.61%
• Country: IN
• Employees: 5,479
• Sector: Financial
• Sector Strength: 69
• Industry: Banks - Regional
• EPS (TTM): -1.58
• Shares Outstanding: 515,510,800
• 10 Day Avg. Volume: 69,393
• 30 Day Avg. Volume: 46,241
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹29.00
• Price Target Upside: -3.01% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 41 Neutral
• Price Target: ₹29.00 ▼(-3.01% Downside)

The overall stock score of 41 reflects significant challenges in financial performance, particularly in profitability and cash flow management. Technical indicators suggest a bearish trend, with the stock trading below key moving averages and nearing oversold conditions. The negative P/E ratio highlights unprofitability, although the dividend yield offers some compensation to investors.

ESAF Small Finance Bank Limited Business Overview & Revenue Model

Company Description

ESAF Small Finance Bank Limited (ESAFSFB) is a financial institution based in India that focuses on providing banking services to underserved and unbanked segments of the population. Established to promote financial inclusion, ESAFSFB operates in the microfinance and small finance banking sectors, offering a range of products including savings accounts, loans, fixed deposits, and various digital banking services. The bank aims to empower individuals and small businesses by providing them with accessible financial solutions tailored to their needs.

How the Company Makes Money

ESAFSFB generates revenue primarily through the interest income derived from loans provided to customers, which include personal loans, microfinance loans, and small business loans. The bank charges interest on these loans, which typically represents a significant portion of its earnings. Additionally, ESAFSFB earns income from fees and commissions on various banking services, such as account maintenance fees, transaction fees, and service charges. The bank also benefits from interest earned on its investments in government securities and other financial instruments. Strategic partnerships with organizations focused on financial inclusion may further enhance its outreach and client base, contributing positively to its revenue streams.

ESAF Small Finance Bank Limited Financial Statement Overview

Summary

ESAF Small Finance Bank Limited shows strong revenue growth of 73.92%, but faces significant profitability challenges with a negative net profit margin of -12.04% and negative EBIT margin of -16.01%. The debt-to-equity ratio has improved to 0.72, indicating better leverage management, yet the return on equity is negative at -26.75%. The company also struggles with negative operating and free cash flows, highlighting liquidity issues.

Income Statement

The company has shown strong revenue growth of 73.92% in the latest year, indicating a positive trajectory. However, the negative net profit margin of -12.04% and negative EBIT margin of -16.01% highlight significant profitability challenges. The gross profit margin remains healthy at 29.30%, but the overall profitability is concerning due to the negative net income.

Balance Sheet

The debt-to-equity ratio has improved to 0.72, indicating better leverage management compared to previous years. However, the return on equity is negative at -26.75%, reflecting poor returns for shareholders. The equity ratio is not directly provided, but the improvement in debt management is a positive sign.

Cash Flow

The company faces challenges with negative operating cash flow and free cash flow, indicating liquidity issues. The free cash flow to net income ratio of 1.66 suggests some efficiency in converting net income to cash, but the overall cash flow position is weak, with a significant decline in free cash flow growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	28.07B	43.29B	27.90B	20.55B	21.48B	10.51B
Gross Profit	21.87B	12.69B	27.90B	20.55B	13.55B	10.51B
EBITDA	-6.35B	-6.34B	6.21B	0.00	0.00	1.70B
Net Income	-5.21B	-5.21B	4.26B	3.02B	547.32M	1.05B
Balance Sheet
Total Assets	271.78B	271.78B	260.87B	202.24B	177.08B	123.39B
Cash, Cash Equivalents and Short-Term Investments	19.79B	19.79B	2.06B	7.67M	15.12B	18.19B
Total Debt	14.06B	14.06B	45.01B	45.44B	48.97B	24.30B
Total Liabilities	252.29B	252.29B	235.95B	185.09B	162.96B	109.87B
Stockholders Equity	19.49B	19.49B	24.92B	17.15B	14.12B	13.52B
Cash Flow
Free Cash Flow	0.00	-3.85B	7.94B	-6.42B	5.34B	2.81B
Operating Cash Flow	0.00	-2.32B	8.65B	-5.71B	5.88B	3.31B
Investing Cash Flow	0.00	-7.69B	-5.83B	-5.73B	-9.82B	-6.38B
Financing Cash Flow	0.00	15.57B	54.37B	22.50B	50.74B	26.24B

ESAF Small Finance Bank Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 29.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ESAFSFB, the sentiment is Negative. The current price of 29.9 is below the 20-day moving average (MA) of 30.56, below the 50-day MA of 32.05, and below the 200-day MA of 33.57, indicating a bearish trend. The MACD of -0.73 indicates Positive momentum. The RSI at 34.65 is Neutral, neither overbought nor oversold. The STOCH value of 20.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ESAFSFB.

ESAF Small Finance Bank Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	70 Outperform	€14.39B	8.60	6.89%	4.50%	38.45%	42.04%
JSFB	62 Neutral	₹49.76B	11.26		―	13.66%	-52.10%
EQUITASBNK	46 Neutral	₹62.33B	44.89		1.82%	13.47%	-115.98%
ESAFSFB	41 Neutral	₹15.54B	66.17		2.32%	-4.34%	-285.61%
UTKARSHBNK	―	₹23.00B	101.76		2.39%	―	―