SBFC Finance IPO versus Concord Biotech IPO: Which one should you choose?

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Cyient DLM. Given that the two businesses are from two different sector, where SBFC Finance IPO is a non-banking finance company (NBFC), while Concord Biotech IPO is a research & development biopharma company, most analysts are bullish on both. In case you are an investor who is looking to apply for only one, here are some expert views: Speaking on SBFC Finance IPO vs Concord Biotech IPO, Vaibhav Kaushik, Research Analyst at GCL Broking said, “If you ask me to choose either of the two public issues, I would advice investors to go for SBFC Finance IPO as it is providing better valuation comfort to investors.

It is priced reasonably against its peers valuations as well. So, the public issue may list between ₹80 and ₹95 apiece levels." According to Vinit Bolinjkar, Head of Research, Ventura Securities SBFC Finance is a business that focuses on the Micro, Small & Medium Enterprises (MSME) sector, with a pan-Indian presence and a well-diversified network of customers. Hence, they are protected against geographic risk because they do not have any concentration in any state.

Second they have reduced credit exposure to individual customers resulting in a more granular portfolio thereby spreading risks across a large pool of customers. "We anticipate that SBFC can grow 5-6% points higher that the overall credit grow of 25% cagr over the next few years. Assuming marginal deterioration in asset quality we value SBFC at 1.9x fy26 adj P/BV.

We expect a conservative PT of 75/share over the next 24 months," added Bolinjkar. According to some analysts, Concord Biotech has loyal customers all over the world, and they have plants registered in numerous countries. Their enhanced capacity complements the IPO fund very well.