Suryoday Small Finance Bank Limited

Financial Services — Banks - Regional · NSE

₹148.48+₹0.71 (+0.48%)

DalalBaazaar Score

74 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

The 60-second version of Suryoday Small Finance Bank Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Suryoday Small Finance Bank Limited provides financial products to micro-entrepreneurs and underserved communities and individuals in India. It operates through Treasury, Retail Banking, Corporate Banking, and Other Banking Operation segments.

IndustryBanks - Regional

SectorFinancial Services

Employees8,574

Annual revenue₹1,458 Cr

How does it make money?

Turns over ₹1,458 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit. Each of its 8,574 employees supports ₹17.0 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹17.0 lakh

Who are its competitors?

The closest listed comparisons in its industry are HDFC BANK LTD, ICICI BANK LTD., KOTAK MAHINDRA BANK LTD, AXIS BANK LIMITED. 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 ROE13.8%

What is the outlook?

2 analysts covering the stock expect revenue to grow about 24.6% and earnings to grow about 24.8% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+24.6%

Est. earnings growth+24.8%

Analysts2

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 +73% 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+73%

Margin effect+13%

DalalBaazaar Score

74/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.56 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

75/ 100

Good

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

Valuation

88/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

8.2x

3Y Median

12.9x

40 monthly readings · mean 14.3x · range 5.0x–28.8x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 36% below its 3y median of 12.9x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 52% below the peer median of 17.0x.

vs. its own history

Cheap

12.9x median over 40 months · -36%

vs. sector peers

Cheap

17.0x median of 4 peers · -52%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

—

PEG

0.33

What's Good / What's Bad

🟢 What's Going Well1

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?

Priced below its own history
The stock trades 36% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 52% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

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

1Revenue growth stays above 15% a year✓ 20.0% CAGR
Latest reported year was 45.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2Return on equity stays above 8%✗ 7.3%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Valuation vs its own median of 12.9x✓ 8.2x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 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

6 good · 4 neutral · 1 weak

Market Cap

₹1,578 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

8.2x

Cheap

Cheap against the generic band

P/B Ratio

0.76x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹18.05

Profitable

Profitable on a per-share basis

ROE

7.3%

Weak

Weak capital efficiency

ROCE

Not meaningful

N/A for lenders

Banks and NBFCs don't report capital employed the way other businesses do

Debt/Equity

1.37x

Moderate

Moderate leverage

Revenue Growth (YoY)

45.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

113.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.01%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹577 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

4.2x

Improving

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

Operating Margin

23.9%

Good

Healthy core-business profitability

Net Margin

13.6%

Good

Strong bottom-line conversion

Beta (vs Nifty)

0.56

Defensive

Steadier than the market

52W Range Position

32%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

147.5 / 151.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

48.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹844 Cr	₹1,182 Cr	₹1,323 Cr	₹1,458 Cr	+20.0%
PAT (Net Profit)	₹78 Cr	₹216 Cr	₹115 Cr	₹152 Cr	+25.1%
EPS	₹7.32	₹20.15	₹10.75	₹14.29	+25.0%
ROE	4.9%	12.0%	6.0%	7.3%	—
Total Debt	₹2,041 Cr	₹1,726 Cr	₹2,485 Cr	₹2,854 Cr	+11.8%
Free Cash Flow	-₹190 Cr	₹879 Cr	₹1,143 Cr	₹577 Cr	—

🟢 Revenue has grown at 20.0% a year over 3 years.

🟢 PAT (Net Profit) has grown at 25.1% a year over 3 years.

🟢 EPS has grown at 25.0% a year over 3 years.

🟢 ROE has risen from 4.9% to 7.3% over 3 years (+2.4 pts).

🔴 Total Debt has grown at 11.8% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹190 Cr to ₹577 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹19,884 Cr

Total Liabilities

₹17,806 Cr

Cash & Equivalents

₹2,099 Cr

Operating Cash Flow

₹652 Cr

Capex

-₹76 Cr

Shareholding (proxy)

Institutional Holding

19.0%

Insider Holding

35.4%

Corporate Actions

Dividend Rate

₹1.5

Ex-Dividend Date

17 Jul 2026

Analyst Consensus

Recommendations

2 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹280

+88.6% vs CMP

Target Range

₹261 – ₹299

Peer Comparison

Company	P/E	ROE
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
KOTAK MAHINDRA BANK LTD	21.9x	11.2%
AXIS BANK LIMITED	14.5x	13.4%

Recent News

2 positive3 mixed1 general

Suryoday Small Finance Bank (SURYODAY.NS): Shares Gain 2.28% to ₹146.83 as Stock Holds Above Key Support - Dividend Arbitrage

https://www.siam.in/, 05 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Suryoday Small Finance Bank (NSEI:SURYODAY) Stock Forecast & Analyst Predictions

Simply Wall Street, 27 JulAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Suryoday Small Finance Bank board to meet Oct 22 for Tier II bond issue

scanx.trade, 17 Oct

Suryoday Small Finance Bank Ltd. Share Price Falls 10.66%

Univest, 28 JulPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

SURYODAY Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Suryoday Small Finance Bank final dividend: Ex- date tomorrow; Rs 1.50 per share payout due

Moneycontrol.com, 16 JulCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

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 · Valuation

MiddlingProfitability

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

1 of 3 tripwires tripped — Return on equity stays above 8% · see Key things to watch ↑