Given rural India as the highly underserved market for formal banking services in terms of access, SSFL strategically focuses on clients in this region and as of March 31’2019, 94.6% of portfolio was located in rural. The company offers income generation loans under the joint liability group (JLG) model, predominantly to women from low-income households in rural areas. As per the mgmt, the group consist of 8 to 10 women working as the agriculture labour. The ticket size is as small as in the multiple of few thousands below

Valuation and Outlook

At the higher price band of Rs856, SSFL’s share is valued at P/ABV multiple of 2.4(x) (to its post issue FY19 adjusted BVPS).

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