Review

SPANDANA SPHOORTY FINANCIAL 

{Ticker : 542759 { FV: Rs 10 { 52-Week H/L: Rs 1400/484.10

Spandana Sphoorty Financial Limited (SSFL) is engaged in the business of microfinance. The company provides small ticket unsecured loans to women of low-income households in rural & urban areas for a period of one to two years. It also provides business loans, income generation loans as well as loans against gold jewellery. For Q3FY20, the company reported 22 per cent rise in the total income to Rs 358 crore, from Rs 293 crore in Q3FY19. The net interest income (NII) increased by 43 per cent to be Rs 233 crore in Q3FY20, as compared to Rs 163 crore in Q3FY19. The company gained a net profit of Rs 130 crore in Q3FY20, clocking a growth of 40 per cent from the net profit of Rs 93 crore gained in Q3FY19. It has made a direct assignment of microfinance loans of Rs 490.23 crore on March 30, 2020 and a total amount of Rs 1,261.96 crore raised during Q4FY20. Hence, HOLD.