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S

RATING

RECOMMENDATION

Strong Sell

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RATING

RECOMMENDATION

Strong Sell

Business Type

Traditional Business

  • unlisted stock logo
    S.M.I.L.E. MICROFINANCE LIMITED Unlisted Shares Essentials

ISIN

INE786V01012

Face Value

₹10.00

Total Share

1,73,39,693

Total Income

₹66.01 Cr

Profit After Tax

₹12.44 Cr

EPS

₹7.17

P/E

12.27

P/B

0.64

Market Capitalisation

₹152.59 Cr

Book Value

₹138.38 Cr

Intrinsic Value

₹43.30

Sector

Financials

Sub-sector

Consumer Finance

Cashflow - Operations

₹11.41 Cr

Cashflow - Financing

-₹28.10 Cr

S.M.I.L.E. MICROFINANCE LIMITED Growth

Compounded Sales Growth

  • 15.42%

    1 Year

  • 15.14%

    3 Year

  • 22.69%

    4 Year

Pro Only

Compounded Profit Growth

  • -42.03%

    1 Year

  • 14.26%

    3 Year

  • 46.92%

    4 Year

Pro Only

Return On Equity

  • 8.99%

    1 Year

  • 16.71%

    3 Year

  • 9.45%

    4 Year

Pro Only

About S.M.I.L.E. MICROFINANCE LIMITED

About Company

Overview: 

  • S.M.I.L.E Microfinance is a non-banking -finance company (NBFC),registered with and regulated by the Reserve Bank of India, it got incorporated in 21st March 1995.
  • S.M.I.L.E Microfinance is the first Chennai based Microfinance Institution (MFI) to set up operations in 2005 and has a first mover advantage .
  • Company is engaged in providing microfinance services to Women from poor segments of urban and rural Tamil Nadu . 
  • Company adopts JLG model to provide unsecured loans to the members , this ensures credit discipline through weekly, fortnightly, monthly meetings to make sure individual members are diligent in utilizing the loan and are prompt in repaying their loan.
Key facts:
  • In 2006 ,The Company got registered as a non-deposit accepting Non-Banking Financial Company (‘NBFC-ND’) with the Reserve Bank of India (‘RBI’).
  • In 2015 ,it obtained license from RBI to operate as a Non-Banking Financial Company -Micro Finance Institution (‘NBFC-MFI’).
  • In 2010 there was a private equity infusion of ₹50 crore from the USA -Developing World Markets ,this infusion was funded across three tranches.
  • As at March 2020, SMILE Microfinance has presence across 7 states with a portfolio outstanding of INR 606 Cr, managed through a network of 137 branches and a team of more than 800 employees.

  • S.M.I.L.E. MICROFINANCE LIMITED Product & Services

Products and services:

SMILE offers - Group Loans. Group Loans are used by women, for income generating activities. SHARE has created this product with an intention to build deeper relationships with clients who want to grow their businesses, and at the same time expand the client base by reaching out to new clients. 


  • S.M.I.L.E. MICROFINANCE LIMITED Industry Overview

Industry Statistics

Introduction: 


India is the largest microfinance market in the world, with the sector growing at an average rate of over 50 per cent. Consequently, it is attracting domestic and foreign investors and new players, who are hoping to practice profitable philanthropy.

Microfinance, or micro-credit, typically comprises very small-sized loans of about INR 7,400 extended to an individual or a group of individuals, which are called self-help groups (SHGs). Borrowers are generally from the weaker sections of society.

The Reserve Bank of India (RBI), the country’s central bank, has urged banks to opt for the SHG model to lend to over 3 Cr small and micro units, to ensure they have easy access to funds.


Market overview: 


According to the Intellecap study, the market size for microfinance in India is in the range of 5.8 to 7.7 Cr. clients, assuming the entire poor population of the country represents potential clientele. This translates to an annual credit demand of INR 42,180 Cr. to INR 1.4 Lakh Cr., assuming loan sizes range between INR 7400 and INR 18,500.

India microfinance market is anticipated to grow at a brisk CAGR of more than 40% through 2025, predominantly on account of increasing demand for microfinance loans from the MSME sector. The main objective of microfinance organizations is to give a chance to low-salary borrowers to become self-sufficient.



Future Prospects

Investment Scenario:

  • Svasti Microfinance Private Limited has raised a total of INR 31 Cr.  from its existing investors Adar Poonawalla, Nordic Microfinance Initiative (NMI) and Rajiv Dadlani Group. It will also be raising around INR 150 Cr. of equity in FY 2022 to fund growth plans.
  • Asirvad Microfinance Ltd has mobilised INR 111.2 Cr., 7-year commercial loan from US-based WorldBusiness Capital (WBC), Inc

S.M.I.L.E. MICROFINANCE LIMITED Strengths

  • The company has 137 branches across 7 states including Central Indian states Chhattisgarh, Jharkhand, Madhya Pradesh and Karnataka in South India.
  • The company has excellent NPA ratios. Its GNPA and NNPA for FY20 were 0.2% and 0.0%, respectively.
  • The company has excellent profit margins. Its EBIT margin and EBITDA margin for FY20 were 39.2% and 40.5%, respectively.
  • Company’s total income increased by 17.6% in FY20, when compared to FY19.
  • The company’s Net interest margin is best in its peers.

S.M.I.L.E. MICROFINANCE LIMITED Shortcomings

  • The company has a low to moderate profitability. 
  • Company’s total income increased by 17.6% in FY20, when compared to FY19.

S.M.I.L.E. MICROFINANCE LIMITED Opportunities

  • The NBFCs-MFI industry has a microloan portfolio of 74,371 Cr. at at the end of March 20 registering a year-on-year growth of 31%. MFI industry is growing at a rapid pace.

S.M.I.L.E. MICROFINANCE LIMITED Threats

  • The continuation of pandemic can adversely affect the collections in the asset classes of microfinance as the same. As per Acuite Ratings, the collections of MFIs and smaller NBFCs drop to 65-85% in Q1 FY22.
  • The company faces a stiff competition from other microfinance institutions like Equitas Small Finance, ESAF Microfinance, Fusion Microfinance, Annapurna Microfinance, Muthoot Microfinance etc.

S.M.I.L.E. MICROFINANCE LIMITED Rating

  • RECOMMENDATION

    Strong Sell

  • S.M.I.L.E. MICROFINANCE LIMITED Detail Info

Industry Statistics

PUBLIC LIMITED

Registered In

India

last Updated

05/08/2021

Registered Date

21/03/1995

Planify Ticker

smltd

Reg Office: 14/25, Chakrapani Street,West Mambalam, Chennai , Tamil Nadu 600033.

Website: http://www.smileltd.in