SBI Funds Management Limited

Financial Services — Asset Management · NSE

₹508.00−₹11.55 (−2.22%)

DalalBaazaar Score

76 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

No individual risk factor stands out on this snapshot.

In simple words: Strong business and financial position, with modest growth. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:28 pm

Understanding the Business

Company site ↗

The 60-second version of SBI Funds Management Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

SBI Funds Management Limited is a privately owned investment manager. The firm primarily provides its services to individual and retail investors. It also caters to institutional investors and other domestic and foreign investors.

IndustryAsset Management

SectorFinancial Services

Annual revenue₹4,389 Cr

How does it make money?

Turns over ₹4,389 Cr a year. Of every ₹100 of sales, about ₹70 reaches shareholders as profit, with ₹83 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC BANK LTD, ICICI BANK LTD., STATE BANK OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE16.5%

What is the outlook?

6 analysts covering the stock expect revenue to grow about 16.3% and earnings to grow about 16.2% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+16.3%

Est. earnings growth+16.2%

Analysts6

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +103% while net margin moved +13% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+103%

Margin effect+13%

DalalBaazaar Score

76/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 33.7x already prices in growth
✗ P/B of 17.35x is a steep premium to book

Quality vs. Valuation

Company Quality

84/ 100

Excellent

How good the business is, ignoring the share price entirely.

Valuation

39/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

33.7x

Sector Median

17.0x

median of 4 sector peers

⚠️Against its sector it trades 98% above the peer median of 17.0x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Expensive

17.0x median of 4 peers · +98%

vs. generic bands

Fair

15x–35x

EV/EBITDA

28.3x

PEG

1.06

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 77.7% to 83.3% over 3 years.
Return on equity is rising
ROE has improved from 28.2% to 51.4%.
Return on capital is rising
ROCE has improved from 36.8% to 64.7%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 77.7% to 83.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 98% above the peer median. That premium needs a reason that persists, or it closes.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 20% a year✓ 26.6% CAGR
Latest reported year was 4.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 81%✓ 83.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 49%✓ 51.4%
For a lender this is the cleanest single read on whether the book is being grown profitably.

Investment Checklist

10 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹1.03 L Cr

Large Cap

Large, widely-covered business — typically the steadiest of the bands

P/E (Trailing)

33.7x

Fair

Fairly valued against the generic band

P/B Ratio

17.35x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹15.06

Profitable

Profitable on a per-share basis

ROE

51.4%

Strong

Strong capital efficiency

ROCE

64.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

2.19x

High

High leverage

Revenue Growth (YoY)

4.6%

Modest

Modest growth

Profit Growth (YoY)

3.4%

Modest

Slow profit growth

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹2,460 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

26.3x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

83.1%

Good

Healthy core-business profitability

Net Margin

61.5%

Good

Strong bottom-line conversion

Current Ratio

9.14

Comfortable

Healthy short-term liquidity

52W Range Position

11%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

521.1 / 543.0

Bearish alignment (short < long)

RSI (14)

34.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,162 Cr	₹2,691 Cr	₹3,598 Cr	₹4,389 Cr	+26.6%
EBITDA	₹1,679 Cr	₹2,149 Cr	₹2,962 Cr	₹3,655 Cr	+29.6%
EBITDA Margin	77.7%	79.9%	82.3%	83.3%	—
PAT (Net Profit)	₹1,340 Cr	₹2,073 Cr	₹2,540 Cr	₹3,067 Cr	+31.8%
EPS	₹6.58	₹10.18	₹12.47	₹15.06	+31.8%
ROE	28.2%	30.7%	30.6%	51.4%	—
ROCE	36.8%	38.7%	39.4%	64.7%	—
Free Cash Flow	₹1,188 Cr	₹1,427 Cr	₹1,873 Cr	₹2,460 Cr	+27.5%

🟢 Revenue has grown at 26.6% a year over 3 years.

🟢 EBITDA has grown at 29.6% a year over 3 years.

🟢 EBITDA Margin has risen from 77.7% to 83.3% over 3 years (+5.6 pts).

🟢 PAT (Net Profit) has grown at 31.8% a year over 3 years.

🟢 EPS has grown at 31.8% a year over 3 years.

🟢 ROE has risen from 28.2% to 51.4% over 3 years (+23.2 pts).

🟢 ROCE has risen from 36.8% to 64.7% over 3 years (+27.9 pts).

🟢 Free Cash Flow has grown at 27.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹6,420 Cr

Total Liabilities

₹457 Cr

Total Debt

—

Cash & Equivalents

₹20 Cr

Operating Cash Flow

₹2,488 Cr

Capex

-₹28 Cr

Shareholding (proxy)

Institutional Holding

35.2%

Insider Holding

55.6%

Analyst Consensus

Recommendations

9 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹655.5

+29.0% vs CMP

Target Range

₹585 – ₹750

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
STATE BANK OF INDIA	10.3x	15.2%

Recent News

6 general

SBI FUNDS MANAGEMENT LTD Share Price

Upstox, 16 Oct

SBI Funds Management Raises Rs16.54 Bn In Pre-IPO Round

https://www.fintechbiznews.com/, 13 Oct

SBI Funds Management receives request to reclassify IDPIC entity

scanx.trade, 16 Oct

SBI Funds Management IPO Day 1 Subscription Touches 40% So Far: Check Key Issue Details

Groww, 14 Jul

India's SBI Funds ends 6.2% higher on debut as investors bet on industry growth

Reuters, 21 Jul

Jefferies initiates SBI Funds Management coverage with Buy; sees 26% upside

The Economic Times, 28 Aug

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Risk

WeakValuation

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you.

All 3 tripwires holding · see Key things to watch ↑