According to reports from CNBC TV18, shares of SBFC Finance Ltd. declined as much as 12% on Tuesday, January 27, marking the biggest single-day drop since the company's listing in August 2023. The stock traded at ₹90, down from recent levels despite strong quarterly performance. The primary factor weighing on investor sentiment was the announced management rejig, with current MD & CEO Aseem Dhru set to be elevated as non-executive Vice Chairman from April 1, 2026. Mahesh Dayani, a founding member of SBFC Finance, will be elevated from Executive Director to the new MD & CEO position.
As reported by CNBC TV18, SBFC Finance delivered robust financial results for the December quarter. The company's net profit grew by 34% to ₹118 crore from ₹88 crore during the same quarter last year. Assets Under Management (AUM) at the end of the quarter expanded by 29% year-on-year to ₹10,478 crore from ₹8,148 crore in the previous year, demonstrating strong business growth across the company's lending portfolio.
According to the earnings report covered by CNBC TV18, SBFC Finance showed improved operational metrics during Q3. Operating expenses as a percentage of AUM decreased to 3.93% from 4.4% in the previous quarter, indicating better cost management. Credit costs remained stable on a sequential basis, while the combination of lower operational expenses and stable credit costs resulted in the company's Return on Assets (RoA) improving to 4.67% from 4.56% sequentially.
As reported by CNBC TV18, the stock's current trading price of ₹90 brings it close to its listing price from August 2023, when it debuted at ₹82 per share, well above the issue price of ₹57 apiece. The recent decline represents a significant retreat from the stock's 52-week high of ₹123, highlighting the market's focus on management stability despite strong operational performance in the latest quarter.
