Shares of Spandana Sphoorty Financial Ltd opened sharply lower on October 29, 2024, plunging by 10.87% to ₹409.50 on the NSE. The drop follows concerning financial performance indicators, with a notable increase in both gross non-performing assets (NPAs) and net NPAs quarter-on-quarter.
The microfinance company reported a loss for the quarter, contrasting with a profit in the previous year as well as the prior quarter. The sharp rise in NPAs highlights growing asset quality concerns, which appear to have rattled investor confidence. The increased NPAs indicate a higher level of loan defaults, potentially reflecting stress in the company’s borrower base or adverse economic conditions impacting its client segment.
The combination of rising NPAs and a reversal from profit to loss has put significant downward pressure on Spandana’s stock, as investors weigh the implications of deteriorating financial health and potential recovery challenges ahead.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should perform due diligence before making investment decisions.
