Stock Market View | Shivani Nyati, Head of Wealth, Swastika Investmart on how to trade ESAF SFB shares?

ESAF Small Finance Bank has debuted at Rs. 71.90, i.e., 20% above its issue price. It has a major operation in the microloan segment, with a main focus on rural areas. The company has a strong presence in southern India. And it has a growing retail deposit portfolio. If we look at its financials, the company has reported strong growth in top- and bottom-line numbers.

The issue is coming at a P/BV of 1.5x, which seems fairly priced. Thus, considering this valuation and its better performance in terms of its CIR, NNPA, and NIM, So, allottees who applied for the public offering for listing premium are advised to maintain their stop loss at 60 and wait for further upside, whereas those who have a medium- to long-term perspective can also hold the stock.