Suryoday corrected a lot post listing – Is it time to buy?
Suryoday SFB is a business which is going through challenges and would revive once the COVID dust settles. We recommend that investors with moderate risk appetite should gradually start adding the stock for the long term
June 02, 2021 / 09:29 AM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
Suryoday Small Finance Bank (SFB, CMP: Rs 223, Market Cap: Rs 2370 crore) had a solid track record at the time of its IPO in March 2021. But we were circumspect about its near-term prospects because of its Covid-related asset quality stress. Our concern was validated in its latest quarterly report as profits took a hit because of asset quality woes. However, alongside our recommendation to avoid Suryoday, we had advised investors to look at the stock should it...