Best Small Cap Stocks for Long Term: Suryoday Small Finance Bank Analysis
Suryoday Small Finance Bank (SFB), a high-risk small cap stock, reported a Q4 FY25 net loss due to elevated provisions and a 7.2% GNPA, driven by stress in its unsecured micro-finance portfolio.
Despite this, loan and deposit books crossed Rs 10,000 crore, with 30-35% growth guidance for FY26.
The bank aims to increase secured assets to 55%, supported by retail deposits and digital capabilities.
Trading at 0.5 times FY27 P/BV, it offers upside potential but requires asset quality stabilization.
Suitable for high-risk investors, Suryoday’s diversification into secured lending and expected 1.5-1.6% RoA by FY26 make it a compelling best small cap stocks for long term.
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