Spandana Sphoorty hits 5% upper circuit as board approves sale of stressed loan

Shares of Spandana Sphoorty Financial surged nearly 5 percent on Thursday, December 29, after the board of the company approved the transfer of the outstanding stressed loan portfolio to an asset reconstruction company for ₹95 crore.

The company's outstanding stressed loan portfolio, including written-off loans, was approximately of ₹323.08 crore as of September 30, 2022.

During Thursday's trade, the stock opened at Rs. 569.75 per share against the previous close of Rs. 548.95 per share and rallied further to touch Rs. 576.35.

The stock touched a 52-week high of Rs. 653.95 on September 19, 2022 and a 52-week low of Rs. 286.65 on June 20, 2022, indicating that at the current level, the stock is trading over 100 percent above its 52-week low and 11.8 percent below its 52-week high.

The stock has grown over 38 percent in the last six months. It has given a positive return of 31 percent in the past one year. However, the stock has declined almost 29 percent in the last five years.

The firm reported a total income of ₹310.15 crore for the quarter that ended September 2022, up 19.81 percent from the previous quarter's income of ₹258.86 crore and down 21.72 percent from the same period last year. In the most recent quarter, the company generated a net profit after tax of Rs. 55.19 crore.

Spandana Sphoorty Financial is a mid-cap company with a market cap of Rs. 4,048.61 crore, functioning in the NBFC sector. It is an India-based microfinance institution company that operates through the financing segment. The company covers over 18 states with approximately 1,010 branches.

According to a Mintgenie poll, 3 analysts on average have a ‘STRONG BUY’ call on the stock.