The advances have grown from 580 crores to 3500 Crores in the last 5 years. 2. Bank has manageable NPA of 2.80% in the FY20. 3. Bank has book value of 125 as on 31.03.2020. So, asking P/B is 2.44x (reasonable). 4. R Bhaskar Babu is a seasoned banker having previously worked with HDFC, has managed and grown a bank well.
54.1. arunARUN| Link| Bookmark|
March 17, 2021 5:23:36 PM
IPO Guru (2000+ Posts, 1700+ Likes)
P/B will be 1.96 with IPO money as book value will go up after accounting for pre IPO placements in FY 21 and IPO money (fresh issue)
@ipobull, agreed. AU SFB is completely different ballgame.
But even if I take Ujjivan or Equitas, Suryoday shows higher growth, comparable or better Net Interest Margin, better cost-to-income, and far better capital adequacy. But the valuation is the same as Ujjivan or Equitas at ~2x post money book value. So the price seems fair to me as well.