Equitas Small Finance Bank Limited
Equitas Small Finance Bank Limited Fundamental Analysis
Equitas Small Finance Bank Limited (EQUITASBNK.BO) shows weak financial fundamentals with a PE ratio of 77.43, profit margin of 1.31%, and ROE of 1.71%. The company generates $78.5B in annual revenue with strong year-over-year growth of 10.40%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 23.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze EQUITASBNK.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakEQUITASBNK.BO struggles to generate sufficient returns from assets.
Valuation Score
ModerateEQUITASBNK.BO shows balanced valuation metrics.
Growth Score
ModerateEQUITASBNK.BO shows steady but slowing expansion.
Financial Health Score
ModerateEQUITASBNK.BO shows balanced financial health with some risks.
Profitability Score
WeakEQUITASBNK.BO struggles to sustain strong margins.
Key Financial Metrics
Is EQUITASBNK.BO Expensive or Cheap?
P/E Ratio
EQUITASBNK.BO trades at 77.43 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, EQUITASBNK.BO's PEG of -0.17 indicates potential undervaluation.
Price to Book
The market values Equitas Small Finance Bank Limited at 1.30 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 61.34 times EBITDA. This signals the market has high growth expectations.
How Well Does EQUITASBNK.BO Make Money?
Net Profit Margin
For every $100 in sales, Equitas Small Finance Bank Limited keeps $1.31 as profit after all expenses.
Operating Margin
Core operations generate 1.63 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.71 in profit for every $100 of shareholder equity.
ROA
Equitas Small Finance Bank Limited generates $0.17 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Equitas Small Finance Bank Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Equitas Small Finance Bank Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
EQUITASBNK.BO converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
77.43
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.17
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.30
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.01
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.94
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.002
vs 25 benchmark
ROCE
Return on capital employed
0.002
vs 25 benchmark
How EQUITASBNK.BO Stacks Against Its Sector Peers
| Metric | EQUITASBNK.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 77.43 | 19.07 | Worse (Expensive) |
| ROE | 1.71% | 805.00% | Weak |
| Net Margin | 1.31% | 1633.00% | Weak |
| Debt/Equity | 0.94 | 0.96 | Neutral |
| Current Ratio | 0.00 | 579.15 | Weak Liquidity |
| ROA | 0.17% | -23911.00% (disorted) | Weak |
EQUITASBNK.BO outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Equitas Small Finance Bank Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
108.26%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-74.48%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
-54.90%
Industry Style: Value, Dividend, Cyclical
Declining