SBFC Finance Limited (SBFC) AI Stock Analysis

• Market Cap: ₹114.93B
• Dividend Yield: N/A
• Average Volume (3M): 117.55K
• Price to Earnings (P/E): 29.1
• Beta (1Y): 1.02
• Revenue Growth: 29.27%
• EPS Growth: 28.44%
• Country: IN
• Employees: 3,758
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 1.00
• Shares Outstanding: 1,095,848,900
• 10 Day Avg. Volume: 114,168
• 30 Day Avg. Volume: 117,553
• PEG Ratio: 0.78
• Price to Book (P/B): 3.09
• Price to Sales (P/S): 7.55
• P/FCF Ratio: -6.91
• 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: 67 Neutral
• Price Target: ₹117.00 ▲(11.32% Upside)

SBFC Finance Limited's strong financial performance, particularly in revenue and profit growth, is a key strength. However, technical indicators suggest a neutral trend, and the high P/E ratio indicates potential overvaluation. The lack of dividend yield further impacts the stock's attractiveness.

Positive Factors

Revenue Growth

SBFC's consistent revenue growth indicates effective market penetration and product demand, supporting long-term business expansion.

Profit Margins

Improving profit margins reflect strong operational efficiency and cost management, enhancing SBFC's profitability and competitive position.

Operational Efficiency

Robust EBIT and EBITDA margins demonstrate SBFC's ability to manage expenses effectively, supporting sustainable long-term growth.

Negative Factors

Cash Flow Challenges

Negative cash flow conversion indicates potential liquidity issues, which could hinder SBFC's ability to invest in growth opportunities.

Increasing Liabilities

Rising liabilities may strain SBFC's financial stability, increasing risk and potentially impacting future financial flexibility.

Negative Free Cash Flow

Persistent negative free cash flow growth could limit SBFC's ability to fund operations and strategic initiatives, affecting long-term viability.

SBFC Finance Limited Business Overview & Revenue Model

Company Description

SBFC Finance Limited (SBFC) is a non-banking financial company (NBFC) based in India, specializing in providing a range of financial products and services. The company primarily focuses on offering secured and unsecured loans to small and medium-sized enterprises (SMEs), as well as personal loans to individual customers. SBFC operates in the financial services sector, aiming to facilitate growth and expansion for its clients by providing accessible funding solutions tailored to their specific needs.

How the Company Makes Money

SBFC Finance Limited generates revenue through interest income on loans disbursed to its customers. The company earns money by charging interest rates on various loan products, which can vary based on the risk profile of the borrower and the type of loan. Key revenue streams include secured loans, where the company can leverage collateral, and unsecured loans, which typically carry higher interest rates due to increased risk. Additionally, SBFC may earn fees from processing loan applications, late payments, and other service charges. Strategic partnerships with financial institutions, technology providers, and industry associations may also enhance its offerings and contribute to revenue growth by expanding its customer base and improving operational efficiencies.

SBFC Finance Limited Financial Statement Overview

Summary

SBFC Finance Limited shows strong revenue and profit growth with efficient operations, as evidenced by high margins. The balance sheet is stable, but increasing liabilities warrant caution. Cash flow generation is weak, but liquidity is managed through financing activities.

Income Statement

The income statement shows strong revenue growth with a significant increase in total revenue from 2024 to 2025, indicating a positive trajectory. The gross profit margin is healthy, and the net profit margin has improved consistently over the years. EBIT and EBITDA margins are robust, reflecting strong operational efficiency.

Balance Sheet

The balance sheet indicates a moderate debt-to-equity ratio, suggesting a balanced approach to leverage. However, the increase in total liabilities over time could pose a potential risk. The return on equity has improved, reflecting enhanced profitability. The equity ratio is stable, indicating a solid asset base.

Cash Flow

The company experiences negative free cash flow growth, which could be a concern if it continues. The operating cash flow to net income ratio is negative, highlighting challenges in converting earnings to cash. However, the company has been active in financing activities, which supports liquidity.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	12.43B	12.37B	9.37B	6.37B	4.10B	3.02B
Gross Profit	6.80B	6.75B	4.13B	2.24B	1.06B	142.43M
EBITDA	5.45B	5.45B	3.37B	2.19B	1.15B	1.50B
Net Income	3.45B	3.45B	2.37B	1.50B	645.21M	850.10M
Balance Sheet
Total Assets	85.96B	85.96B	70.63B	57.46B	45.15B	42.31B
Cash, Cash Equivalents and Short-Term Investments	7.04B	7.04B	7.00B	3.63B	9.21B	10.28B
Total Debt	52.64B	52.64B	39.96B	37.39B	29.40B	27.68B
Total Liabilities	54.06B	54.06B	42.85B	40.19B	32.28B	30.26B
Stockholders Equity	31.90B	31.90B	27.78B	17.27B	12.87B	12.05B
Cash Flow
Free Cash Flow	0.00	-14.24B	-11.67B	-12.53B	-8.31B	-2.90B
Operating Cash Flow	0.00	-14.15B	-11.55B	-12.45B	-8.22B	-2.75B
Investing Cash Flow	0.00	1.74B	1.59B	2.06B	6.52B	3.75B
Financing Cash Flow	0.00	12.81B	10.37B	10.71B	1.83B	-1.87B

SBFC Finance Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 105.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SBFC, the sentiment is Negative. The current price of 105.1 is below the 20-day moving average (MA) of 106.66, below the 50-day MA of 109.59, and above the 200-day MA of 104.92, indicating a neutral trend. The MACD of -1.43 indicates Positive momentum. The RSI at 41.82 is Neutral, neither overbought nor oversold. The STOCH value of 42.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SBFC.

SBFC Finance Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CANFINHOME	73 Outperform	₹121.40B	13.18	―	1.32%	8.92%	12.32%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SBFC	67 Neutral	₹114.93B	29.10	―	―	29.27%	28.44%
UTIAMC	65 Neutral	₹147.31B	24.98	―	2.26%	-9.65%	-30.52%
RELIGARE	62 Neutral	₹77.26B	73.83	―	―	8.35%	-50.99%
INDIASHLTR	55 Neutral	₹93.54B	20.84	―	0.58%	35.30%	41.06%
IFCI	45 Neutral	₹131.24B	34.56	―	―	-12.62%	175.71%

SBFC Finance Limited Corporate Events

SBFC Finance’s Credit Rating Reaffirmed at Crisil AAA (SO)

SBFC Finance Limited announced that Crisil Ratings Limited has reaffirmed the Crisil AAA (SO) rating for the Series A pass-through certificates (PTCs) issued by Prime Trust March 2019, which are backed by loan against property receivables originated by the company. This reaffirmation of the highest credit rating reflects positively on SBFC Finance’s financial stability and reliability, potentially enhancing its market reputation and investor confidence.

SBFC Finance Limited Receives ESG Rating of 76.5

SBFC Finance Limited has been assigned an ESG rating of 76.5 for the financial year 2024-25 by SES ESG Research Private Limited, a SEBI registered ESG Rating Provider. The rating was independently prepared based on publicly available data, and it reflects the company’s performance in environmental, social, and governance aspects, potentially impacting its market perception and stakeholder trust.

SBFC Finance Limited Publishes Postal Ballot Notice in Major Newspapers

SBFC Finance Limited, a company listed on the National Stock Exchange of India and BSE Limited, has announced the publication of a Postal Ballot Notice in the Financial Express and Loksatta newspapers. This move is part of their compliance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The notice is also available on the company’s website, indicating transparency and adherence to regulatory requirements, which may impact stakeholder confidence positively.

SBFC Finance Limited Announces Postal Ballot for Stock Option Policy Approval

SBFC Finance Limited has announced a Postal Ballot Notice to seek shareholder approval for the SBFC Stock Option Policy 2025 – I through a special resolution. The company is utilizing remote e-voting to facilitate this process, with the voting period set from November 15, 2025, to December 14, 2025. This move is part of the company’s efforts to enhance its stock option policies, potentially impacting its operational strategies and stakeholder engagement.

SBFC Finance Limited Allots Over 2.6 Million Shares Under ESOP

SBFC Finance Limited has announced the allotment of 2,651,417 equity shares to its employees under various Employee Stock Option Schemes (ESOP) as of November 4, 2025. This move increases the company’s issued and paid-up equity share capital, reflecting its commitment to employee engagement and retention, which may enhance its market positioning and stakeholder value.

SBFC Finance Limited Announces Stock Option Policy and Management Changes

SBFC Finance Limited announced the approval of the ‘SBFC Stock Option Policy 2025 – I’, which includes a pool of 1,21,00,000 employee stock options, pending shareholder approval via postal ballot. Additionally, the company reported the resignation of its Head of Internal Audit, Mr. Shanesh Jain, and Head of Credit, Mr. Viney Vaid, with Mr. Sreenivas Mylavarapu appointed as the new Chief Credit Officer. These changes are part of the company’s ongoing efforts to align its management team with strategic goals, potentially impacting its operational dynamics and stakeholder relations.

SBFC Finance Limited Reports Q2 2025 Financial Results

SBFC Finance Limited announced its unaudited financial results for the quarter and half-year ending on September 30, 2025, following a board meeting held on November 1, 2025. The results were approved based on the audit committee’s recommendations, and the company confirmed maintaining sufficient security cover for its secured listed non-convertible debentures. The announcement underscores SBFC’s compliance with SEBI regulations and its commitment to transparency, potentially reinforcing its position in the financial market.

SBFC Finance Limited’s Credit Ratings Reaffirmed by CARE Ratings

SBFC Finance Limited has announced the reaffirmation of its credit ratings by CARE Ratings Limited as of October 1, 2025. The company’s long-term bank facilities have been rated as CARE AA- with a stable outlook, while its commercial paper has been rated CARE A1+. Additionally, the non-convertible debentures have also received a CARE AA- rating with a stable outlook. This reaffirmation of ratings indicates the company’s strong financial stability and is a positive signal for stakeholders, reflecting confidence in SBFC Finance’s operational and financial management.