Incorporated in 2006, Jana Small Finance Bank Limited is one of the leading Small Finance Banks of India in terms of assets under management and deposit size as at March 31, 2020 JSFBL have the second most geographically diversified portfolio with a pan-India presence among all Small Finance Banks in India as at March 31, 2020. As at February 28, 2021, JSFBL had 611 Branches, including 166 Branches in Unbanked Rural Centres, and 134 ATMs located in 229 districts in 19 states and three union territories. JSFBL have served over 8 million customers since 2008, including approximately 3.05 million active customers. JSFBL's primary unsecured loan products are group loans (loans are offered to a group of women as per the Joint Liability Group ('JLG') model), agricultural and allied loans, and individual and micro business loans. JSFBL's primary secured loan products are affordable housing loans, MSME loans, gold loans, loans against fixed deposits, term loans to NBFCs, two- wheeler loans, and micro housing loans. As at September 30, 2020 and March 31, 2020, 2019 and 2018, company's gross AUM were Rs 112,630.35 million, Rs 112,986.69 million, Rs 65,195.69 million and Rs 76,358.90 million, respectively. Since becoming a Small Finance Bank, they have focused on increasing the AUM of secured advances to diversify the AUM and within unsecured advances they have focused on growing the AUM of agricultural and allied loans. As a result, the AUM of secured advances as a percentage of total AUM has increased from 1.18% as at March 31, 2018 to 29.01% as at September 30, 2020 and the AUM of agricultural and allied loans as a percentage of the AUM has increased from 5.51% as at March 31, 2018 to 16.13% as at September 30, 2020. As per financial performance, JSFBL has posted total income/net profits (loss) of Rs. 1,597.04 cr. / Rs. (2503.79) cr. (FY18), Rs. 1,368.26 cr. / Rs. (1,949.06) cr. (FY19), Rs. 2,424.76 Cr. / Rs. 30.3 Cr. (FY20) and Rs. 2,732.79 Cr. / Rs. 84.31 Cr. (FY21). So company has posted consistent high growth in sales, but loss is also very high. In FY21, due to pandemic sales decreased as there was lock down in most of the Indian cities. Company has posted an average EPS of Rs. 20.99 and average RoNW of 30.75% for last three fiscals. Issue is priced at a P/BV of 13.11 as per NAV of 82.62 on 31.03.21. Company has posted loss, so there is no point in calculating P/E ration. As per RHP, there is listed peers shown in above table. On BRLM's front, two BRLMs are associated with this IPO, and have handled around 37 IPO in last three fiscals. From last 10 IPOs, 2 are opened below issue price and remaining are opened above issue on the day of listing. As of now, all are trading below and other are trading above issue price. ( As on 13.07.21) As per financials, company has shown good growth in sales, RoNW and P/E are negative as company is making losses consistently. In current pandemic situation, sales of company declined. This is a technology driven service company with unique business model and has very huge growth potential, but its also important to see when company will start making profits. Performance of BRLM is good. So, we are giving SUBSCRIBE rating to this IPO for listing gains and aggressive investors can hold for long term.
✍️ Post a Comment