One of the crucial things every investor considers before buying shares in any company is the Return On Investment (ROI). It is the basic criteria of deciding whether listed or unlisted shares are profitable or not. Capital Small Finance Bank Limited is India's first Small Finance Bank (SFB) that started operations in 2016.
In fact, Capital Small Finance Bank unlisted shares are actively trading and remain quite popular among retail investors. In this blog, we will discuss the company's financials and the returns it can offer in the future.
An Overview Of Capital Small Finance Bank Ltd
One way to forecast the return Capital Small Finance Bank can generate is to analyse its current performance in the unlisted share market. This small finance bank is unlisted and offers its Pre-IPO shares for trading purposes. The company's total authorised capital is Rs 3500 Lakhs and has a paid-up capital of Rs 2848 Lakhs.
Talking about the company's business, Capital Small Finance Bank has been involved in the finance business over the last 20 years. It offers modern banking facilities to people in rural areas at a low cost. Shedding light on Capital Small Finance Bank's financial performance, it showed exceptional growth in the last three years and maintained a CAGR of 29.41%.
Business Analysis Of Capital Small Finance Bank
The extent of return you will get from the company will depend on its current business performance. Capital Small Finance Bank unlisted share price can also affect business performance. Analysing Capital Small Finance Bank Limited's business performance in detail is vital. Here we will analyse the business of this small finance bank for the last three years.
| Particulars (in Cr.) | FY20 | FY21 | FY22 |
| Net worth | 402 | 447 | 516 |
| Total business | 7,772 | 8,984 | 10,681 |
| Advances | 3,325 | 3,763 | 4,645 |
| Deposit | 4,446 | 5,221 | 6,046 |
From the above table, it is clear that the company's net worth has increased from FY20, which was Rs 402 crore, to Rs 516 in FY22. In addition, the total business of Capital Small Finance Bank increased from Rs 7,772 crore to Rs 10,681, which grew quickly.
The overall business of Capital Small Finance Bank showed positive growth, which is a positive sign for its investors. As a result, Capital Small Finance Bank unlisted share price also grew from Rs 325 per share in 2020 to Rs 410 per share in 2023.
Profitability Analysis Of Capital Small Finance Bank
The next step that will help you determine whether Capital Small Finance Bank will offer good returns in future is the profitability of a business. It is one of the most critical financial metrics that shows how much profit any business makes after deducting taxes. Profit After Tax (PAT) is the metric you should also consider when it comes to buy Capital Small Finance Bank unlisted shares. Let's see the profit this bank has made over the last three years:
| Particulars (in cr.) | FY20 | FY21 | FY22 |
| Total Income | 502 | 557 | 632 |
| Operating Profit | 52 | 72 | 113 |
| Net Profit | 25 | 41 | 63 |
The profitability analysis shows that the total income of Capital Small Finance Bank Ltd increased during FY20-22. The bank's net profit also increased from Rs 25 crore in FY20 to Rs 63 crore in FY22.
Recent Financial Report Of Capital Small Finance Bank
The recent financial report of Capital Small Finance Bank for FY22 and FY23 will give you a better idea of the bank's recent performance.
| Particulars (in cr.) | 9MFY23 | 9MFY22 |
| Operating Expenses | 163 | 143 |
| Interest Earned | 497 | 425 |
| EPS | 20.2 | 12.9 |
| Book Value | 172.2 | 145.6 |
| Profit Before Provisioning | 108 | 90 |
| Other Income | 34 | 39 |
| Non Performing Assets | 150 | 101 |
| Total Taxes | 23 | 14 |
The financial performance of the Capital Small Finance Bank for the nine months of FY22 and FY23 was positive. After the proper analysis of Capital Small Finance Bank financial performance, there is a high chance that it may generate a good return for investors. However, it is equally important to assess the other metrics like EBITDA and market valuation before deciding to buy Capital Finance Small Bank unlisted shares.
Invest In Unlisted Shares Of Capital Small Finance Bank Now!
The growth rate and other financial metrics depicted a positive sign about Capital Small Finance Bank financial performance. Before the arrival of Capital Small Finance Bank IPO, you can invest in its unlisted shares to get good returns on a long-term basis.
Count on the best unlisted shares brokerage platform in India to buy unlisted shares. Stockify offers access to trending blue-chip stocks that provide a good return on investment.
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FAQs
1- Is Investing in Capital Small Finance Bank Unlisted Shares Safe?
Capital Small Finance Bank's unlisted shares are less risky and offer good long-term returns. It is vital to perform an in-depth assessment before investing in Capital Small Finance Bank unlisted shares.
2- What Is The Applicability Of Taxes On Capital Small Finance Bank Pre-IPO Shares?
Unlisted shares are applicable for the tax rate once traded. For more info on the tax rate of Capital Small Finance Bank unlisted shares, contact us.
3- Is Buying Unlisted Shares Of Banks Illegal In India?
Buying or selling unlisted shares is legal in India and regulated by the Securities Exchange Board of India (SEBI).
4- When Should I Pay Short-Term Capital Gain Taxes On Capital Small Finance Bank Shares?
You must pay a short-term capital gain tax on your unlisted shares if you sell shares within two years.
5- How To Buy Capital Small Finance Bank Pre-IPO Shares?
You can buy unlisted shares of Capital Small Finance Bank by using an online unlisted shares trading platform like Stockify.
