Satin Creditcare in the limelight

Satin Creditcare Network is a microfinance company that lends mostly in the northern parts of the country, in fact it is the largest in North India and fifth largest in India. It is among the few microfinance companies in India pushing for cashless transactions, after a pilot in Uttar Pradesh. The company wants to make at least 80% of all its transaction cashless by March next year. The company is listed since 1996 on Delhi, Jaipur and Ludhiana stock exchanges and got listed on the BSE and NSE in 2015.

The company  for Q4FY15 posted a very good set of numbers. Revenue rose 72% (YoY) at Rs.173 crore and AUM was up 53% at Rs.3271 crore. NIM was up 95% at Rs.85 crore and net profit came in at Rs.16 crore, up 57%. It ended Fy16 with a 83% jump in net profit at Rs.58 crore. Asset quality is good – Gross NPA for FY16 was at 0.19% v/s 0.02% and Net NPA was at 0.09% v/s 0.01%.

Equity stands at Rs.31.50 crore and EPS for the fiscal came in at Rs.20 (FV of Rs.10/share). For FY17, the company has given a guidance of Rs.100 crore net profit, which is a 72% growth over Fy16 bottomline.

Promoters hold 36% stake and PE Funds  - five of them together hold 48.9%. As at 31st March 2016, it had reached 33,631 villages, with 18,51,113 borrowers  and disbursements stand at Rs. 3606 crore.

The stock is up in the green today, currently 4,5% up at Rs.367 levels with an intra day high at Rs.400. Its 52-week high and low stands at Rs.489.70 and Rs.264 respectively.