Suryoday Small Finance Bank: PAT growth of 178% & NII growth of 29% in FY24 at a PE of 9.3
Strong guidance of 30-35%+ advance growth for FY25 after achieving its guidance for FY24. SURYODAY has a roadmap for strong growth till FY28. It is available at reasonable valuations of P/B of 1.1
1. A Small Finance Bank
suryodaybank.com | NSE : SURYODAY
2. FY21-24: PAT CAGR of 163% & Net Interest Income CAGR of 33%
3. FY23: Back in profits & Net interest income (NII) up 28% YoY
4. Strong 9M-24: PAT up 300% & NII up 29% YoY
5. Q4-24: PAT up 57% & NII up 37% YoY
PAT up 6% & NII up 8% QoQ
6. Strong FY24: PAT up 178% & NII up 29% YoY
7. Return ratios: Improving return ratios
8. Outlook: Guiding for 30%+ advance growth in FY25
i. FY25: Strong guidance for growth with improving asset quality
ii. Strong roadmap for FY28
Growth CAGR for FY23-28
Gross Advances = 30%
Deposits = 35%
9. PAT growth of 178% & NII growth of 29% in FY24 at a PE of 9.3
10. So Wait and Watch
If I hold the stock then one may continue holding on to SURYODAY
Coverage of SURYODAY was initiated after Q3-24 results. The investment thesis has not changed after a strong FY24 against the guidance for FY24. The delivery of a strong FY24 has increased confidence in the management to deliver a FY25 as per the guidance
SURYODAY is in the middle of a strong run and has delivered sequential QoQ growth in PAT in all the four quarters of FY24
SURYODAY has a strong roadmap for growth till FY28.
11. Or, join the ride
If I am looking to enter SURYODAY then
SURYODAY has delivered PAT growth of 178% & NII growth of 29% in FY24 at a PE of 9.3 which makes valuations quite reasonable for the short term.
Outlook for growth in advances of 30%+ and deposit growth of 40% in FY25 at a PE of 9.3 makes the valuations quite reasonable from a longer term.
With a share price of Rs 188 against a book value per share of Rs 169.96 as of Q4-24 end implies that SURYODAY is available a price to book of 1.1 which makes the valuations quite attractive
One needs to keep a watch on asset quality even though NPA’s are trending down with 70%+ of GNPA covered by provisioning as indicated in the provisioning coverage ratio
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