Operating Margin

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Price: 103.22 INR 3.1% Market Closed

Market Cap: 113.1B INR

73.1%

Declining

by 0.6%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

73.1%

Operating Income

₹10.8B

Revenue

₹14.7B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

73.1%

Operating Income

₹10.8B

Revenue

₹14.7B

Peer Comparison

Country		Company	Market Cap	Operating Margin
IN	S	SBFC Finance Ltd NSE:SBFC	112.2B INR	Loading...
US		American Express Co NYSE:AXP	247.8B USD	Loading...
US		Capital One Financial Corp NYSE:COF	146.9B USD	Loading...
IN		Bajaj Finance Ltd NSE:BAJFINANCE	5.9T INR	Loading...
US		Discover Financial Services NYSE:DFS	50.3B USD	Loading...
US		SoFi Technologies Inc NASDAQ:SOFI	30.9B USD	Loading...
US		Synchrony Financial NYSE:SYF	28.7B USD	Loading...
IN		Shriram Finance Ltd NSE:SHRIRAMFIN	1.9T INR	Loading...
IN		Muthoot Finance Ltd NSE:MUTHOOTFIN	1.6T INR	Loading...
IN		Tata Capital Ltd NSE:TATACAP	1.4T INR	Loading...
IN		Cholamandalam Investment and Finance Company Ltd NSE:CHOLAFIN	1.4T INR	Loading...

Market Distribution

Min	-153 833.3%
30th Percentile	2.7%
Median	7.3%
70th Percentile	13.2%
Max	9 977%

Other Profitability Ratios

SBFC Finance Ltd
Glance View

Market Cap

113.1B INR

Industry

Financial Services

In the bustling corridors of India's financial landscape, SBFC Finance Ltd. emerges as a key player, adeptly navigating the intricacies of small and medium enterprise (SME) financing. Founded with a vision to bridge the gap between traditional banking and emerging credit needs, SBFC has honed its focus on providing tailored financial solutions to underserved segments. The company specializes in offering loans to entrepreneurs and owners of small enterprises, whose financial profiles may not neatly align with conventional banking requirements. SBFC leverages its extensive network of branches across India and technologically-driven underwriting processes, thereby efficiently assessing the creditworthiness of its clientele. This nuanced approach not only ensures a robust risk management framework but also fosters strong relationships within communities, thereby driving business growth within these pivotal economic sectors. By adopting a customer-centric lens, SBFC Finance Ltd. generates revenue primarily through the interest and fees on its credit offerings. The company capitalizes on its deep understanding of local markets and its ability to customize loan products suited to varied customer needs. Alongside core SME loans, SBFC also diversifies its portfolio by entering the personal loan segment for salaried professionals, further broadening its revenue streams. A strategic emphasis on maintaining a healthy credit portfolio, coupled with strong repayment practices among borrowers, ensures that SBFC achieves sustainable profitability. This meticulously crafted business model underscores the firm's commitment to contributing significantly to India’s employment ecosystem by empowering small businesses and instigating entrepreneurial vibrance in the nation.

View SBFC Analysis

SBFC Intrinsic Value

Undervaluation 28%

Intrinsic Value

Price

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

SBFC Finance Ltd
NSE:SBFC

Peer Comparison

Market Distribution

Other Profitability Ratios

SBFC Finance Ltd
Glance View

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SBFC Finance Ltd NSE:SBFC