Satin Creditcare Network: 44% revenue growth & return to profitability in FY24 at a PE of 6 and price to book of 1.2
Satin Creditcare Network: 44% revenue growth & return to profitability in FY24 at a PE of 6 and price to book of 1.2
Strong FY24 after losses in FY21-23. FY24 performance ahead of guidance. FY25 guidance carrying forward FY24 performance. At reasonable valuations with opportunities of re-rating of multiples
1. Microfinance company
satincreditcare.com | NSE: SATIN
Group Structure
2. Weak FY20-24: Recovery in FY24 after 3 years of losses
3. Strong 9M-24: Revenue up 42% YoY and back in profit
4. Strong Q4-24: PAT up 37% and Revenue up 51% YoY
PAT up 8% Revenue up 11% QoQ
5. Strong FY-24: Revenue up 44% YoY and back in profit
6. Business Metrics: Improving return ratios
7. Outlook: Beating guidance for FY24
i. FY24 performance ahead of FY24 guidance
ii. Strong Guidance for FY25
GLP growth = 25%+
Credit cost = 1.5-1.75%
7. Return to profitability with revenue growth of 42% at a PE of 6 and price to book of 1.2
6. So Wait and Watch
If I hold the stock then one can hold on to SATIN
Coverage of SATIN was initiated after Q1-24 results. The investment thesis has not changed after a strong FY24. SATIN has delivered the highest top-line and bottom-line since FY20.
Outlook for SATIN is strong as FY25 guidance is continuation of the strong performance delivered in FY24.
SATIN has delivered QoQ growth in PAT since Q2-24. One can ride along as long as strong quarterly results are being delivered.
Outlook for Q1-25 is strong. Q1 is the slowest quarter, but Q1-25 expected to be not as slow as a typical Q1.
7. Or, join the ride
If I am looking to enter SATIN then
SATIN has delivered return to profitability & Revenue growth of 44% in FY24 at a PE of 6 which makes the valuations look attractive in the short term.
As of Q4-24 end SATIN has a net-worth of Rs 2,400.8 cr on a market cap of Rs 2,871 cr. At a price to book (P/B) of 1.2 there is headroom for re-rating of the P/B multiple
Previous coverage of SATIN
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