SBFC Finance Limited (SBFC) AI Stock Analysis

SBFC Finance Limited

(NSE:SBFC)

Select Model

Rating:77Outperform

Price Target:INR 96.00▲(8.70% Upside)

Action:reiterated

Date:08/27/26

The overall score of 77 is primarily driven by exceptional financial performance, specifically robust revenue growth and highly lucrative profit margins. Technical indicators reinforce this fundamental strength with a solid upward trend across all major moving averages. While aggressive loan portfolio expansion results in negative operating cash flows and necessitates external funding, the company's valuation remains very reasonable relative to its rapid growth trajectory.

Positive Factors

Strong revenue growthRapid, multi-year revenue expansion indicates that SBFC is increasing loan origination and reaching more customers in its target markets. Continued top-line momentum can strengthen operating leverage, broaden the earnings base, and support further investment in branches, distribution, and collections.

Negative Factors

Persistent negative cash flowConsistently negative operating and free cash flow means rapid loan-book growth is consuming cash rather than generating it. This makes SBFC more dependent on continued funding access and balance-sheet capacity, reducing financial flexibility if growth slows or funding conditions become less favorable.

SBFC Finance Limited (SBFC) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 92.58B
Dividend Yield: ―
Average Volume (3M): 351.86K
Price to Earnings (P/E): 18.2
Beta (1Y): 1.12
Revenue Growth: 28.39%
EPS Growth: 28.14%
Country: India
Employees: 5,055
Sector: General
Sector Strength: 55
Industry: Financial - Credit Services

SBFC Finance Limited Business Overview & Revenue Model

Company Description

SBFC Finance Limited operates as a financial services provider, delivering a range of funding solutions. The company's primary offerings include secure credit facilities for Micro, Small, and Medium Enterprises (MSMEs) and loans backed by gold. Addit...

How the Company Makes Money

SBFC primarily makes money through interest income earned on loans it originates and holds on its balance sheet. The core revenue stream is the spread between (a) interest charged to borrowers on secured MSME and small business loans and (b) the comp...

SBFC Finance Limited Financial Statement Overview

Summary

Exceptional revenue growth and impressive 27% net profit margins highlight strong operational efficiency. The balance sheet is well-capitalized with a manageable debt-to-equity ratio of 1.92. While free cash flow is negative, this is typical for a credit services firm aggressively expanding its loan book.

Income Statement

90Very Positive

Balance Sheet

82Very Positive

Cash Flow

65Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	19.09B	16.60B	12.37B	9.37B	6.37B	4.10B
Gross Profit	10.34B	8.37B	6.75B	4.13B	2.24B	1.06B
EBITDA	8.09B	7.35B	5.45B	3.37B	2.19B	1.15B
Net Income	5.10B	4.51B	3.45B	2.37B	1.50B	645.21M
Balance Sheet
Total Assets	136.85B	110.85B	85.96B	70.63B	57.46B	45.15B
Cash, Cash Equivalents and Short-Term Investments	14.54B	6.45B	7.04B	7.00B	3.63B	9.21B
Total Debt	93.38B	71.62B	52.64B	39.96B	37.39B	29.40B
Total Liabilities	96.36B	73.60B	54.06B	42.85B	40.19B	32.28B
Stockholders Equity	40.49B	37.25B	31.90B	27.78B	17.27B	12.87B
Cash Flow
Free Cash Flow	0	-19.07B	-14.24B	-11.67B	-12.53B	-8.31B
Operating Cash Flow	0	-18.93B	-14.15B	-11.55B	-12.45B	-8.22B
Investing Cash Flow	0	1.31B	1.74B	1.59B	2.06B	6.52B
Financing Cash Flow	0	19.77B	12.81B	10.37B	10.71B	1.83B

SBFC Finance Limited Technical Analysis

Technical Analysis SentimentNeutral

Last Price88.32

Price Trends

50DMA90.35Negative

100DMA91.31Negative

200DMA92.40Negative

Market Momentum

MACD-1.41Negative

RSI47.79Neutral

STOCH68.75Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SBFC, the sentiment is Neutral. The current price of 88.32 is above the 20-day moving average (MA) of 84.12, below the 50-day MA of 90.35, and below the 200-day MA of 92.40, indicating a neutral trend. The MACD of -1.41 indicates Negative momentum. The RSI at 47.79 is Neutral, neither overbought nor oversold. The STOCH value of 68.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:SBFC.

SBFC Finance Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:SBFC against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:SBFC	77Outperform	INR 94.00B	18.22	―	―	28.39%	28.14%
IN:SATIN	73Outperform	INR 26.27B	4.93	―	―	19.64%	296.19%
IN:FIVESTAR	72Outperform	INR 116.44B	10.48	―	0.51%	8.86%	0.71%
IN:PAISALO	59Neutral	INR 74.09B	26.93	―	0.13%	23.67%	26.77%
IN:MASFIN	58Neutral	INR 44.29B	10.64	―	0.82%	22.71%	23.45%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:INDOSTAR	48Neutral	INR 29.63B	-7.57	―	―	-1.90%	-151.41%

* General Sector Average

Performance Comparison

IN:SBFC and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:SBFC	SBFC Finance Limited	88.26	-29.19	-24.85%
IN:FIVESTAR	Five-Star Business Finance Limited	400.70	-249.83	-38.40%
IN:INDOSTAR	IndoStar Capital Finance Limited	184.35	-84.65	-31.47%
IN:MASFIN	MAS Financial Services Ltd.	250.55	-60.92	-19.56%
IN:PAISALO	Paisalo Digital Ltd.	79.24	40.80	106.12%
IN:SATIN	Satin Creditcare Network Ltd	237.35	86.40	57.24%

SBFC Finance Limited Corporate Events

SBFC Finance clears Sept-quarter unaudited results with clean review

Oct 24, 2026

SBFC Finance Limited’s board has approved the unaudited financial results for the quarter and half year ended 30 September 2026, following a meeting held on 24 October 2026. The results were prepared under Indian Accounting Standard 34 and rele...

SBFC Finance schedules Q2 FY27 earnings call for October 26

Oct 21, 2026

SBFC Finance Limited has scheduled an earnings conference call on Monday, October 26, 2026, at 9:30 a.m. India Standard Time to discuss its financial results for the quarter and half year ended September 30, 2026. The call will feature senior managem...

SBFC Finance Files SEBI Compliance Certificate on Demat Activity for Q2 FY27

Oct 8, 2026

SBFC Finance Limited has submitted to the stock exchanges a compliance certificate for the quarter ended 30 September 2026 under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The filing indicates that its registrar K...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 27, 2026

SBFC Finance Limited AI Stock Analysis