Outlook & Valuation: At upper end of the price band, SSFL is valued at 2.7x of
FY2019 BV (Pre-IPO) and on post di lution basis at 2.4x of Book value, whereas
close peers i.e. CreditAccess Grameen is trading at 3x FY2019 BV. Given SSFL’s
successful exit from CDR in March 2017, healthy NIM, return ratio and low
penetration of financial services in rural India coupled with a well-capitalised
balance sheet and experienced management; we believe the company has an
excellent base for next level of growth. Based on the posi tive factors, we assign
SUBSCRIBE rating to the issue.

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