SBFC Finance IPO was announced in September month with a price band of Rs. 54 to Rs. 57 and the issue size was approximately Rs. 600 Crore. The stock is listed on the NSE and BSE at Rs. 82 at a 70% premium and as of now, it is trading near 10% up from the listing price. Below we shared SBFC Finance’s share price target for 2024, 2025, and 2026.
The SBFC Finance stock is listed at Rs. 82 and created an all-time high of Rs. 97.80. As of now 17 Feb 2023, the SBFC Finance stock is trading at Rs. 88.85 (price aftermarket closer). In a few words, this IPO is one of the successful IPOs of 2023 due to the company’s business model and hard work.
The company’s business model is very clear and simple. As a result, they can focus on only one thing and become expert in it. With the increase in the number of services just related to the loans, they can expand their businesses very smartly.
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About SBFC Finance
SBFC Finance is a non-banking Indian Finance company. The company was founded in 2008 and its current managing director is Mr. Aseem Dhru. The SBFC company only provides loans.
SBFC Finance is a finance company that only gives loans to micro, small, and medium-sized businesses. They provide two types of loans i.e. loans against gold and secures MSME.
Secure MSME: The client needs to give something valuable to get the loan. It can be anything like property or any items.
Loan Against Gold: If you have gold then the client can take money against your gold.
Company Fundamentals
From the fundamentals, you can know about the company in detail like the strength of the company, the right value of the company, the position of the company among all companies of the same sector, financial statements, growth of the company, and many more.
Most probably you are a retail investor, it is highly recommended to do a fundamental analysis by yourself of the stocks in which you are investing or already invested. In case, you know how to do a fundamental analysis of companies you can learn it from the Internet.
Note: The fundamentals of HBFC Finance were last updated on 17 Feb 2023. Check the latest data on any broker website or screener.
Net Profit & Loss (Yearly)
| Year | Net Profit & Loss (In Crore) |
|---|---|
| March 2019 | NA |
| March 2020 | NA |
| March 2021 | NA |
| March 2022 | ₹64.52 |
| March 2023 | ₹150 |
Net Profit & Loss (Yearly)
| Quarter | Net Profit & Loss (In Crore) |
|---|---|
| Dec 2022 | NA |
| Mar 2023 | NA |
| Jun 2023 | ₹46.97 |
| Sep 2023 | ₹52.61 |
| Dec 2023 | ₹63.86 |
Company Fundamentals
| Market Cap | ₹9,526Cr | ROE | 0.00% |
| P/E Ratio (TTM) | 63.51 | EPS (TTM) | 1.40 |
| P/B Ratio | 3.75 | Div Yield | 0.00% |
| Industry P/E | 18.80 | Book Value | 23.68 |
| Debt to Equity | 1.41 | Face Value | 10 |
Shareholding Pattern
| Held By | Jun 2023 | Sep 2023 | Dec 2023 |
|---|---|---|---|
| FIIs | NA | 2.74% | 2.23% |
| DIIs | NA | 12.42% | 11.94% |
| Public | NA | 20.36% | 21.88% |
| Promoters | NA | 64.05% | 63.74% |
| Government | NA | 0.00% | 0.00% |
Key Points
- SBFC Finance’s CAGR is 18.12% which is good.
- In the last 3 years, SBFC Finance has given approx 61.60% profit growth.
- The income growth of the company is growing in the last 5 years.
- In the last 3 years, the company has given approx 61.6% profit growth.
- PE of the company looks very high, during any issue the stock prices may fall very badly.
- The financials of the SBFC Finance is very stable.
Quarterly Results (FY23-24 Q2)
The SBFC Finance compnay has been listed recently and its financial data is only available for the last few quarters. In Dec 2023, the compnay made a net profit of Rs. 63.86 Crore this is the highest profit of the compnay in its previous quarters.
Investing Rules
Investment rules play a major role in the life of an Investor to invest in the right stock, book profit at the right time, buy at the right time, sell at the right time, and many more… In a few words, it plays a major role in reducing risk in the stock market and maximizing profit.
These rules apply to the maximum sectors’ stocks. If you are new in the market or don’t have enough knowledge you should follow the rules to make your self psychology strong.
- Rule 1: Do not invest in penny stocks, if investing make sure most of the money is invested in the large-cap stock, large-cap mutual funds, etc. Penny stocks are hazardous, especially for retail investors.
- Rule 2: Invest for the long term, at least 5 to 6 years. Investing for the long term reduces a lot of risk. It is confirmed that the market will go up in the long term.
- Rule 3: Do not invest in a lot of stocks, It will become very hard to analyze all the stocks regularly. So, invest in a limited number of stocks like 15 – 18 stocks only.
- Rule 4: Only invest in 1 – 2 stocks of a specific sector. In case, the stock faces any problem in the future your maximum investments will be safe.
- Rule 5: Investing in SIP mode will keep averaging your buying price with time and the return will also be maximized.
- Rule 6: Invest only 5% to 6% in a single stock. In penny stocks, you should only invest in the 3% to 4%.
- Rule 7: You should have all the information about the stocks you invested like the company, company products & services, business model, company fundamentals, etc.
- Rule 8: Only invest or SIP in stocks only when available at a very high discount of 10% to 15% at least.
- Rule 9: When a stock you want to invest in is near its all-time high and has the potential to go up, you should invest in the stock in SIP mode.
- Rule 10: Do not invest in those stocks, which are in trouble and have problems in the company fundaments especially in penny stocks.
SBFC Finance Share Price Target
In the non-banking finance sector, there is very high competition and Bajaj Finance is a market leader in the industry. Before a few months, Jio Financials Services emerged from Reliance Industries Ltd. Jio Financial Services is also jing the competition as well.
SBFC Finance Ltd only provides loans for micro, small, and medium-sized businesses. Other Finance companies provide many services and products related to finances.
It does not mean that these giant companies in the finance industry can kill SBFC Finance. The problem is that it will be very hard to grow the company in the future.
Disclaimer: We are not SEBI registered and the below-given share target price by brokerage firms, analysts (share price forecast), and analysis by us is only for educational purposes, not any buying or selling recommendation. We will be not responsible for any profit and loss.
SBFC Finance share price target 2024
SBFC Finance stock has been trading in a range for the last few weeks. As the market is very bullish as of now then it should not happen in these market conditions.
If you check the PE ratio of the compnay then you’ll notice the PE of the compnay is very high compared to the many other good companies of the same industry.
As of now, the PE Ratio of SBFC Finance is approx 63.82 but the PE ratio of the Bajaj Finance compnay is 34.52. However, there are some major differences in their business many business are the same.
If you are a short-term trader then draw support and resistance and trade the stock in the direction where the stock is going after breaking the levels.
SBFC Finance share price target 2025 and 2026
As the other non-banking finance companies provide services like loans to all the large and small companies SBFC Finance is only providing services to small and medium-size businesses.
So, comparing the SBFC Finance company with other companies directly is not good. But in the last 2 years 2022 and 2023 the company is shown good profit growth. If you are a long-term investor then profit growth is an important metric for analyzing any company and as of now, enough data is not available.
In the long term, SBFC Finance stock can give a massive profit. The fundamentals of SBFC Finance are very strong and stable. In the last few years, SBFC Finance has shown good profit growth according to the available data.
Investing in penny stocks like SBFC requires more attention, experience, research, and time. It is not possible for every individual. So, we strongly recommend you to only invest when you can do above mentioned things.
FAQs
Yes, SBFC Finance is a good stock and delivered an operating revenue of Rs. 732.81 Crore. The fundamentals and the business model of the SBFC are very stable.
as the company only targets micro, small, and medium businesses to provide loans. It can be an advantage and a disadvantage too in different cases.
In 2024, the SBFC Finance stock can give good returns but this is only theory as the stock was recently listed in the NSE and BSE. Once it starts sowing good profits then more people will start investing too.
No, SBFC Finance is not a penny stock but can be treated as a penny stock because of the very tough competition in the finance industry. The market cap of SBFC Finance is lower than Rs. 10,000 Crore so, it is a mid-cap company.
Final Words: As we mentioned above the SBFC is a penny stock but the fundmants are very strong as well. In a volatile market, this stock can cause a massive loss so, investing in the stock at a highly discount price where there is no bad news. To reduce the risk of investing only invest 5% to 10% in penny stocks and make a diversified portfolio.