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Capital Small Finance Bank Limited (CAPITALSFB) Fair Value & Analysis

Financial Services · IN · Market cap ₹12.8B

CS Capital Small Finance Bank Limited CAPITALSFB · NSE
Price₹291.80
Fair Value₹404.28
Upside+38.6%
Quality45/100
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Healthy Growth
Highly profitable · 29.0% net margin
generates free cash flow
1.78% dividend yield
Ranks above peers (9/13)
Moderate moat 48/100
Evidence: High Range ₹303.21 – ₹505.35 Share as image

Fair value as of: Aug 2, 2026

From 6 valuation models · updated 11 days ago

Share price −2.3% over the past month.

Below-average quality, screening 39% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (₹303.21). The market is more pessimistic than our downside scenario.
  • Solid quality (45/100) at a price below fair value, the discount is the argument here, not the business quality.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (3 years)

₹440.48 ₹215.23 Fair Value ₹404.28 Feb 2024 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 2, 2026.

How to read this chart

30‑month range ₹215.23 – ₹440.48 · fair‑value band ₹303.21 – ₹505.35 · the ₹291.80 price screens below the ₹404.28 fair value. Dashed = 300-day average. As of Aug 2, 2026.

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Analysis

Capital Small Finance Bank Limited (CAPITALSFB) currently trades at ₹291.80, while our model-based Fair Value estimate is ₹404.28, implying the stock looks roughly 38.6% undervalued today. The Quality Score stands at 45/100 (below-average quality), in the Financial Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Capital Small Finance Bank Limited generated revenue of ₹4.9B at a net margin of 29.0%. Revenue grew 12.0% year over year. It earns a return on equity of 10.1%. Net debt stands at ₹868M. Fundamentals as of Aug 2, 2026

Our scenario range runs from ₹303.21 (bear case) to ₹505.35 (bull case); at ₹291.80, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 9% below its 52-week high and 44% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 42% fair-value upside, at 39%, CAPITALSFB screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income ₹279.17 ₹309.22 ₹504.79 76
Gordon GGM ₹36.55 ₹76.00 ₹120.57 70
P/E Multiple ₹303.21 ₹404.28 ₹505.35 63
All 6 models by family
Dividend Discount
Gordon GGM ₹36.55 ₹76.00 ₹120.57 70
DDM Multi-Stage ₹36.55 ₹64.09 ₹79.77 61
Multiples
P/E Multiple ₹303.21 ₹404.28 ₹505.35 63
P/B Multiple ₹337.42 ₹449.89 ₹562.36 55
Asset-Based
NCAV (Graham) ₹160.68 ₹215.31 ₹321.35 50
Economic Profit
Residual Income ₹279.17 ₹309.22 ₹504.79 76

Widest divergence: Multiples (₹404.28) versus Dividend Discount (₹64.09). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) ₹4.9B
Revenue growth (YoY) +12.0%
Net margin 29.0%
Return on equity 10.1%
Free cash flow ₹1.4B FY2025
P/E ratio 9.0
More key figures
Operating margin 7.1%
EPS (TTM) ₹31.09
Dividend yield 1.8%
EPS growth (YoY) +16.7%
Net debt ₹868M FY2025

Figures from reported company fundamentals · as of Aug 2, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 45/100

Of which business quality 41 · Market factors (momentum, volatility) 55

Profitability 26
Margins and returns on capital today
Quality Growth 44
Are margins and returns improving?
Cashflow 59
Earnings quality: real cash, not paper profit
Fin. Strength 11
Balance sheet, leverage, solvency risk
Investment 41
Disciplined investing over empire-building
Low Volatility 71
Calm price path (market factor)
Momentum 47
Price trend over the last 3–12 months (market factor)
52W Momentum 50
Distance to the 52-week high (market factor)
Net Issuance 78
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Capital Small Finance Bank Limited provides a range of banking and financial products and services for individuals and businesses in India. It operates through four segments: Treasury, Wholesale Banking, Retail Banking, and Other Banking Operations.

Full company description

Capital Small Finance Bank Limited provides a range of banking and financial products and services for individuals and businesses in India. It operates through four segments: Treasury, Wholesale Banking, Retail Banking, and Other Banking Operations. The company offers various deposits accounts, including savings, current, cumulative, short term, quarterly and monthly interest deposit and recurring deposits; real estate regulatory authority accounts; term deposits; bank lockers; debit and credit cards; trade finance; bank guarantees; 3-in-1 trading account; ATMs; cheque and pass books; and pension scheme. It also provides loans, such as loan against rentals, auto, housing, gold, personal, mortgage loan against property, credit card for farmer, corporate loan, and MSME loans. In addition, the company offers various insurance products, such as general, life, health, travel, home, and motor. Further, it provides money transfer, bill payment system, payment gateway, net banking, tax payments, and foreign exchange, government banking, NRI banking services and point of sale services. The company was formerly known as Capital Local Area Bank Limited and changed its name to Capital Small Finance Bank Limited in April 2016. Capital Small Finance Bank Limited was incorporated in 1999 and is headquartered in Jalandhar, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Capital Small Finance Bank Limited reported revenue of ₹11.5B in FY2025 versus ₹6.3B in FY2021, a compound +16.0%/yr. Reported net income was ₹1.4B in FY2025, compounding +22.6%/yr from FY2021.

Growth Quality 95/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
₹11.5B
Latest YoY
+15.3%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+16.5%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+15.5%
Avg. growth/yr (12Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+29.0%
Revenue +16.0%/yr
FY21 ₹6.3B
FY22 ₹7.3B
FY23 ₹8.6B
FY24 ₹9.9B
FY25 ₹11.5B
Net income +22.6%/yr
FY21 ₹626M
FY22 ₹936M
FY23 ₹1.1B
FY24 ₹1.3B
FY25 ₹1.4B
Character of growth · EPS growth decomposed (2014-2025) +17.5 % p.a.
Revenue per share +22.2 pp

of which total revenue +32.7 pp · buybacks/dilution −10.5 pp

EBIT margin −7.7 pp
Tax rate +1.0 pp
Residual (interest, one-offs) +2.0 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Capital Small Finance Bank Limited Fair Value". https://www.fairvalue-calculator.com/stock/CAPITALSFB

Peer Group

Banks - Regional · 1086 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 43 · Bottom 25%
Fair Value upside +39% · Above median
Return on equity (TTM) 10% · Below median
Return on assets 1% · Above median
Net margin (TTM) 29% · Above median
Operating margin (TTM) 7% · Bottom 25%
Revenue growth 12% · Above median
Dividend yield (TTM) 1.8% · Below median

Valuation Multiples vs Banks - Regional median · lower = cheaper

P/E (TTM) 9.0× · Cheaper than median
P/B 0.88× · Cheaper than median
P/S (TTM) 2.62× · Cheaper than median
P/FCF 0.1× · Cheaper than 75% of peers
EV/EBITDA 4.2× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 85 · sector 38
FUTURE 60 · sector 44
PAST 40 · sector 41
HEALTH 0 · sector 85
DIVIDEND 36 · sector 49

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Banks - Regional stocks, each showing price versus our Fair Value estimate (as of Aug 2, 2026).

Stock Price Fair Value vs Fair Value
PT Bank Central Asia Tbk BBCA 6,175 IDR 6,087 IDR -1%
KB Financial Group 105560 184,400 KRW 213,797 KRW +16%
PT Bank Rakyat Indonesia (Persero) Tbk BBRI 2,970 IDR 4,891 IDR +65%
PT Bank Mandiri (Persero) Tbk BMRI 4,310 IDR 7,841 IDR +82%
Banco Bradesco S.A BBD 5,120 ARS 10,240 ARS +100%
Shinhan Financial Group 055550 107,900 KRW 137,259 KRW +27%
Hana Financial Group 086790 136,800 KRW 193,969 KRW +42%
Lloyds Banking Group LYG 4,138 ARS 8,275 ARS +100%
Banco de Chile, CHILE 193.10 CLP 152.55 CLP -21%
Joint Stock Commercial Bank for Foreign Trade of Vietnam, VCB 59,400 VND 84,201 VND +42%

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Frequently asked questions

Is Capital Small Finance Bank Limited (CAPITALSFB) overvalued or undervalued?
As of Aug 2, 2026, our model estimates a fair value of ₹404.28 versus a price of ₹291.80, about +39% (undervalued).
What is the fair value of CAPITALSFB?
Our model-based fair value for Capital Small Finance Bank Limited is ₹404.28 (as of Aug 2, 2026), built from audited fundamentals. The current price is ₹291.80.
What is the quality score of CAPITALSFB?
Capital Small Finance Bank Limited has a Quality Score of 45/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Capital Small Finance Bank Limited (CAPITALSFB)?
Capital Small Finance Bank Limited reported trailing-twelve-month revenue of about ₹4.9B (latest available figure, as of Aug 2, 2026).
What is the net profit margin of CAPITALSFB?
The net profit margin of Capital Small Finance Bank Limited is about 29.0%, meaning it keeps roughly 29.0% of revenue as net income. Based on the latest reported figures.
Does Capital Small Finance Bank Limited pay a dividend?
Capital Small Finance Bank Limited currently shows a dividend yield of about 1.78% relative to its recent price (as of Aug 2, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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