Investment Thesis:
• Significant Corporate Restructuring: The company is undergoing a pivotal transformation from a high-risk, wholesale-focused lender to an asset-light, retail-focused HFC/NBFC with a renewed focus on affordable housing.
• Capital Infusion & Ownership Change: The recent Open Offer to acquire a substantial stake signals strong interest and potential change in ownership/management, which is often a major catalyst for re-rating in NBFCs.
• Valuation Discrepancy: The stock trades at a depressed P/B multiple of 0.60x and a low P/E of 13.89x (TTM), offering a deep value proposition compared to peers (Industry P/E: 25.96x).
• Improved Asset Quality (Proactive): The gross and net NPA ratios have shown sharp improvement in the latest reported period, reflecting successful deleveraging and aggressive sell-down of legacy assets.
• Favorable Market Strategy: Adoption of the Co-Lending Model with banks leverages their cost of funds and the NBFC’s reach, allowing for higher volume growth with reduced balance sheet risk.
Buy call on Samman Capital_6 Oct 2025
BUY : SAMMAANCAP-EQ( SAMMAANCAP ) [30125]
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