August 3, 2023 - August 7, 2023

SBFC Finance IPO Review & Recommendations

BP Equities (BP Wealth), Geojit Securities Ltd, Hem Securities, HENSEX Securities, Indsec Securities, LKP Securities Ltd, Marwadi Shares and Finance Ltd, Nirmal Bang, SBICAP Securities Limited, Swastika Investmart Ltd and Ventura Securities Limited have given "Apply" recommendation to SBFC Finance IPO. Capital Market and Dilip Davda have given "May Apply" recommendation to SBFC Finance IPO. Axis Capital, HDFC Securities Limited and JM Financial Institutional Securities have "Not Rated" the IPO.

SBFC Finance IPO Review Summary from brokers and analysts

Review By	Apply	May Apply	Neutral	Avoid	Not Rated
Count	11	2	0	0	3
%	68.75	12.50	0.00	0.00	18.75

SBFC Finance IPO Analysis By Brokers/Analysts

Reviewer	Recommendation	Past Reviews
Axis Capital	Not Rated
BP Equities (BP Wealth)	Apply
Capital Market	May Apply
Dilip Davda	May Apply
Geojit Securities Ltd	Apply
HDFC Securities Limited	Not Rated
Hem Securities	Apply
HENSEX Securities	Apply
Indsec Securities	Apply
JM Financial Institutional Securities	Not Rated
LKP Securities Ltd	Apply
Marwadi Shares and Finance Ltd	Apply
Nirmal Bang	Apply
SBICAP Securities Limited	Apply
Swastika Investmart Ltd	Apply
Ventura Securities Limited	Apply

SBFC Finance IPO Capital Market Rating

The Captial Market (CapitalMarket.com) rating for SBFC Finance IPO is 45. Their analysis recommends May subscribe for the IPO.

Reviewer	Rating Score	Rating
Capital Market	45	May subscribe

SBFC Finance IPO Review by Dilip Davda (May apply)

[Dilip Davda] Of late we have media reports of MSME loans turning NPAs for financiers, however, this company has shown a decline in its NPAs over the past three fiscals. But with rising competition, and RBI's frequently changing monetary policies, the company may suffer going forward as it has already marked a decline in its NIM for the last three fiscals. Based on its FY23 earnings, the IPO appears aggressively priced compared to its peers. Only well-informed/cash surplus/ risk seeker investors may park funds for the medium to long term in this costly IPO. Read detail review...

SBFC Finance IPO Peer Comparison

SBFC Finance Limited peer comparison with similar listed entities. () (As on March 31, 2023)

Company Name	EPS (Rs)		NAV (per share) (Rs)	P/E (x)	RoNW (%)
Company Name	EPS Basic	EPS Diluted	NAV (per share) (Rs)	P/E (x)	RoNW (%)
SBFC Finance Limited	1.71	1.62	19.26		9.93
Aavas Financiers Ltd	54.38	54.26	413.58	28.80	13.14
Home First Finance Company India Ltd	26.01	25.20	206.48	31.12	12.56
Aptus Value Housing Finance India Ltd	10.11	10.08	67.05	24.80	15.06
AU Small Finance Bank Ltd	21.86	21.74	164.64	35.01	13.01
Five Star Business Finance Limited	20.71	20.49	148.94	32.47	13.91

Notes:

Basic EPS sourced from the company's annual report for the year ended March 31, 2023. Diluted EPS refers to the Diluted EPS sourced from the annual report of the peers for the year ended March 31, 2023.
NAV is computed as the closing net worth divided by the closing outstanding number of equity shares as on March 31, 2023.
P/E Ratio has been computed based on the closing market price of equity shares on July 7, 2023 on BSE, divided by the Diluted EPS.
RoNW is computed as net profit after tax (including profit attributable to non-controlling interest) divided by closing net worth. Net worth has been computed as the sum of paid-up share capital and other equity.

SBFC Finance IPO Review by Members

SBFC Finance IPO Reviews, analysis and views by popular members. Read SBFC Finance Limited IPO reviews by retail investors to find recommended ipo to buy.

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SBFC Finance IPO Review Summary by Members

Review By	Apply	May Apply	Neutral	Avoid
Count	6	0	0	3
%	66.67	0.00	0.00	33.33

Member	Review
RAVZ	Avoid Single digit RONW and ROE while asking high P/B. ALSO THE PE is quite high. This ipo will fizzle out in short term as soon as bull market ends August 5, 2023 9:32:09 AM
Crow IPO Mentor (900+ Posts, 1100+ Likes)	Apply for Listing Gain at Cut-off Price I have a general aversion to MSME lenders and NBFCs because they are more prone to bad loans for which RBI still hasn't found a foolproof panacea. I usually stay away from them, most recently being Five Star Business and Fusion Micro. That being said, SBFC Finance has a healthy book and management. It's worth taking some risk here, especially in comparison with Concord Biotech. The high P/E is concerning, so I will apply with FF in retail only if QIB crosses 30x on day 3. Thanks. 1 August 4, 2023 7:59:59 PM
k l patel IPO Mentor (600+ Posts, 200+ Likes)	Avoid 40 asking P/E on last year's super profits is too much, you can buy already listed nbfc's at lesser cost August 4, 2023 4:07:41 PM
Wolf hunter (400+ Posts)	Apply for Listing Gain at Cut-off Price Anchor investors are good Amansa Investments took Pre IPO Placement of 150 Crore ₹ at 55rs ipo season and its in boom apply for listing gain August 4, 2023 9:51:08 AM
Ankit Dhakad	Apply for Listing Gain at Cut-off Price SBFC Finance IPO doing very well in grey market and company has good financial track record. You can apply for Great listing gains and long term too. 1 August 3, 2023 9:42:40 PM
B.M.SURANA IPO Guru (2700+ Posts, 5300+ Likes)	Apply for Listing Gain at Upper Price Band Strong buyers in grey market 2 August 3, 2023 5:01:54 PM
IPOTraders IPO Mentor (800+ Posts, 400+ Likes)	Apply for Listing Gain at Cut-off Price NBFC on boom August 3, 2023 7:37:21 AM
raj kk	Avoid It is overpriced & the Regulatory changes might affect August 3, 2023 7:15:57 AM
A.DOSHI	Apply for Listing Gain at Cut-off Price full buying mode on at grey market should apply for sure for listing gain.... gmp 39/41 (+-2) July 27, 2023 8:56:16 PM

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