Satin Creditcare Network - Q1FY21 Result - Angel Broking

Mr. Jaikishan Parmar, Sr. Equity Research Analyst, Angel Broking Ltd

"Satin credit reported a subdued set of numbers for Q1FY21. Consolidate3d AUM grew 13.7% YoY and sequentially remained same. NII grew 3.2% YoY and PBT declined 73% YoY primarily because of subdued NII growth and elevated provision cost. Om moratorium front, As of Q1FY21, 11% of our borrowers have opted for a complete moratorium. For July and August, collection efficiency for the entire month stood at 85% of the monthly demand. Satin has COVID related provision worth of Rs. 90cr over and above standard ECL, which is 2% of on-book portfolio. In Q1FY21, Satin has raised Rs120cr through a right issue, which helped them to increase CAR ration and stands at 31%as of Q1FY21. Satin has taken higher provision and maintaining a higher capital adequacy ratio which is positive, however, an investor will keenly watch final slippages from the moratorium book. Satin credit trades at a very low valuation (0.35x of TTM book value ) which is lower compared to its listed peers."

Shares of Satin Creditcare Network Ltd was last trading in BSE at Rs.77.25 as compared to the previous close of Rs. 77.05. The total number of shares traded during the day was 7715 in over 108 trades.

The stock hit an intraday high of Rs. 78.6 and intraday low of 76.3. The net turnover during the day was Rs. 596746.

Source : Equity Bulls

Keywords