Spandana Sphoorty Share Price Target From 2025 to 2030
Spandana Sphoorty Share Price Target From 2025 to 2030: Spandana Sphoorty Financial Ltd. is one of India’s leading microfinance companies that focuses mainly on transactions by providing small-ticket loans to women entrepreneurs from rural and semi-rural areas. It is a micro-lending specialist providing financial assistance to poor families for starting or expanding their business.
Leadership and Management
The company is led by a strong management team with micro-lending and financial services expertise. The management is eager to finance sustainable development with financial inclusion.
Market Position and Competitors
Spandana Sphoorty boasts a highly competitive microfinance business, which is competitively faced by Bandhan Bank, Ujjivan Small Finance Bank, and CreditAccess Grameen. However, its massive network, customer-centric business model, and new-generation lending models are competitive.
2. Financial Condition: How Well Is It?
Revenue and Profit Growth
The company has witnessed oscillating profitability and revenues due to economic pressure and regulatory reform within the microfinance industry. The revenues have increased over the period of the last five years, but profitability has been reduced due to loan default and operation.
Debt and Equity
- Debt-to-equity ratio: 2.24
- Spandana Sphoorty has high debt, which means that it relies on borrowing to expand. It holds true for microfinance companies and NBFCs, but with growing debt, there are associated financial risks.
Earnings Per Share (EPS)
- EPS (TTM): -68.22 (negative numbers indicate losses in past quarters)
- The company must improve earnings and operating efficiency to be profitable.
Cash Flow and Sustainability
- The company’s liquidity profile remains a worry with irregular cash flows from operations.
- Asset quality and collections will be watchpoints to see stability in the future.
Key Financial Figures
- Market Cap: 1.94K Cr
- Book Value: 491.78
- P/E Ratio: -4.08 (Negative earnings)
- ROC: 2.72%
3. Stock Performance: How Does It Behave?
Recent Stock Price Movement
- Open: ₹270.00
- High: ₹276.00
- Low: ₹268.40
- 52-Week High: ₹935.60
- 52-Week Low: ₹247.00
The share price is lower in the last one-year interval, dipping -69.50%. The steep fall is caused by exorbitant loan defaults, financial failures, and cynicism in managing the microfinance sector.
Technical Analysis Indicators
- Momentum Score: 28.4, Weak trend
- MACD (12,26,9): -18.8, Bearish
- RSI (14): 40.8, Neutral, close to oversold
- ADX: 23.7, Weak trend
- ROC (21): -16.5, Negative momentum
Bearish momentum returns in the near term as the technicals mirror. The bearishness will turn around due to bullish market mood and improved fundamentals.
4. Growth Potential: What’s Next?
Expansion Strategy
- The company is interested in expanding the loan book and increasing risk management so as to enable better recovery of loans.
- Customer onboarding and processing of loans enable enhanced operation and lowering costs.
Future Prospect
- Since the superior economic environment, the microfinance sector would expand and the same shall happen with Spandana Sphoorty also. Asset quality and erosion of NPAs would be the prime priority in order to achieve growth in the long term.
5. Share Price Target Estimates (2025-2030)
| YEAR | SHARE PRICE TARGET (₹) |
| 2025 | ₹1000 |
| 2026 | ₹1700 |
| 2027 | ₹2400 |
| 2028 | ₹3100 |
| 2029 | ₹3800 |
| 2030 | ₹4500 |
The above estimates have been taken into account while assuming revenue growth projected, the improvement in the asset quality, and considering planning for growth.
6. External Factors: What Can Push the Stock?
Positive Factors
- Growth of microfinance segment on the back of rural credit demand.
- Plans for digitization to improve operating efficiency.
- Chances of pro-financial inclusion government policies.
Negative Factors:
- Success financially through debt burden.
- Economic slowdown impacting loan repayment.
- Competition with bank and other microfinance institutions.
7. Risk Factors: What Can Go Wrong?
- Low regulatory risks: RBI regulations and microfinance guidelines influence lending practice.
- Market Risks: Broad trends in the stock market that influence the temperament of the investor.
- Operational Risks: Defaults on loans and rising NPAs.
- Liquidity Risks: Reduced ability to raise funds during the financial crisis.
FAQs For Spandana Sphoorty Share Price
1. Is Spandana Sphoorty a good long-term investment?
It is a good growth stock with default risk and high debt risk. Long-term investors must be cautious about financial trends before investing in it.
2. Why did the stock fall last year?
The share dropped on the presumption of poor profitability, increasing NPAs and negative general market sentiment against the microfinance sector.
3. Will Spandana Sphoorty recover in two years?
Turnaround would be based on assumption of improvement in asset quality, decline in debt, and top-line growth. If the management is able to implement its expansion plan, the performance of the stock can turnaround.
4. Does Spandana Sphoorty pay dividend?
No, the company is not paying dividends currently because it is keen to expand and recover from its financial troubles.
5. What are the most important levels to watch in stock price?
- Resistance Level: ₹295.75
- Support Level: ₹242.05
If the stock does break through resistance, it can enter a trend of rising movement; below support will push it further down.
Spandana Sphoorty is a microfinance behemoth but has humongous financial issues on its agenda currently. Long-term growth prospects are great but investors have to wake up to the issues of risk before it can be put to work. The stock can be improved if financials of the company are brought under one roof, NPAs are tracked, and the loan book is diversified.
