Category: 3. Business

SharpLink Gaming (SBET) released third-quarter earnings that caught investors’ attention, with sales rising to $10.84 million and a turnaround to net income compared to a loss during the same period last year.

See our latest analysis for SharpLink Gaming.

SharpLink Gaming’s third-quarter results have fueled a lot of talk, especially with the share price now at $9.52. While there’s still some volatility—the 1-day share price return jumped 2.37%, but the 30-day share price return is down 31.61%—the stock is actually up 17.83% year-to-date. For longer-term holders, the past year delivered a 16.67% total shareholder return, even as the three-year total return remains deeply negative, reminding investors that the momentum is building but the journey’s been a rollercoaster.

If SharpLink’s rebound has your attention, it could be the perfect moment to broaden your perspective and discover fast growing stocks with high insider ownership

Corrected version with em dashes replaced by better formatting:

SharpLink Gaming’s third-quarter results have fueled a lot of talk, especially with the share price now at $9.52. While there is still some volatility, with the 1-day share price return jumping 2.37% but the 30-day share price return down 31.61%, the stock is actually up 17.83% year-to-date. For longer-term holders, the past year delivered a 16.67% total shareholder return. However, the three-year total return remains deeply negative, reminding investors that while momentum is building, the journey has been a rollercoaster.

If SharpLink’s rebound has your attention, it could be the perfect moment to broaden your perspective and discover fast growing stocks with high insider ownership

With SharpLink now trading well below analyst price targets despite its rapid revenue growth and recent return to profitability, the question is whether the stock offers hidden value or if the market has already accounted for future gains.

SharpLink is trading on a price-to-book ratio of just 0.6x, while the industry average stands much higher at 2.4x, suggesting a notable discount at the current price of $9.52.

The price-to-book ratio compares a company’s market value to its book value, revealing how much investors are willing to pay for each dollar of net assets. In sectors such as hospitality, where tangible assets play a significant role, this multiple can offer useful perspective on underlying value.

With SharpLink’s price-to-book ratio well below industry peers (2.4x) and the broader peer group average (5x), the market appears to be heavily discounting the company’s potential. This type of gap often signals pessimism about future earnings, but it may also reflect the company’s young board and unproven earnings track record.

SharpLink’s low valuation could point to overlooked growth catalysts or to deeper skepticism about management execution. If the price-to-book fair ratio becomes available, the market could shift rapidly toward a higher level.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-Book of 0.6x (UNDERVALUED)

However, weak three-year total returns and limited profit history could challenge sustained enthusiasm if momentum stalls or if management execution disappoints.

Find out about the key risks to this SharpLink Gaming narrative.

Looking at SharpLink’s valuation from another angle, our DCF model suggests the stock is trading 32% below its estimated fair value of $14.02. This points to even greater upside than the price-to-book ratio alone suggests. However, can these models capture the full story?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out SharpLink Gaming for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 926 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.

If you’re ready to dig deeper or think your perspective paints a different picture, know that creating your own analysis takes just a couple of minutes. Do it your way

A great starting point for your SharpLink Gaming research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

Smart investors never settle on just one opportunity. Give yourself an edge and stay ahead by searching out unique stocks with real potential before everyone else catches on.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include SBET.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

JFrog (FROG) has rolled out its new Shadow AI Detection feature, signaling a push to address security and compliance challenges as enterprises increasingly adopt AI tools across their operations. This product update arrives at a time of intensifying regulatory scrutiny.

See our latest analysis for JFrog.

JFrog’s introduction of Shadow AI Detection has arrived alongside a surge in its share price, which is up 18.8% over the past month and has climbed 92.9% year-to-date. This momentum comes after a series of major launches and regulatory tailwinds. Investor sentiment appears firmly positive, with total shareholder return over the past year reaching 84.2% and a robust 171% gain over three years, even as longer-term holders are still waiting to make up for early losses.

If you’re intrigued by how enterprise software names are capturing the AI spotlight, it could be the perfect moment to discover See the full list for free.

With JFrog’s stock surging on AI-driven optimism and trading at a 17% discount to average analyst price targets, investors may wonder whether there is still upside left or if future growth is fully reflected in the current price.

With JFrog closing at $59.22 and the widely followed narrative assigning a fair value of $56.44, the platform is currently trading above what analysts view as justified. This sets up a pivotal discussion about the growth assumptions underpinning today’s price premium.

Continued product expansion and innovation, targeting advanced security features, ML model lifecycle management, and new pricing packages, position JFrog to raise contract values and further penetrate its growing addressable market. This supports both revenue acceleration and long-term earnings growth as digital transformation intensifies across industries.

Read the complete narrative.

Curious how bullish growth projections push JFrog’s valuation above fair value? The story hinges on big gains in market share and future profit multiples beyond what most tech companies claim. Wondering which aggressive forecasts drive this price? Dive in and see what’s behind these numbers.

Result: Fair Value of $56.44 (OVERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, slower cloud migration or increased competition in security could dampen JFrog’s expected growth. This could put pressure on both margins and future returns.

Find out about the key risks to this JFrog narrative.

If you have a different perspective or want to chart your own path through the data, it’s easy to build your own view in just minutes. Do it your way

A great starting point for your JFrog research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.

Supercharge your portfolio by spotting unique opportunities across different sectors. Miss out, and you could be overlooking tomorrow’s success stories happening right now.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include FROG.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Mattel (MAT) shares have shown modest gains over the past month, catching some attention from investors looking to understand recent movements. While the news front has been quiet, the steady performance warrants a closer look at underlying metrics.

See our latest analysis for Mattel.

Mattel’s recent momentum is hard to ignore, with a 7.5% share price return over the past month and an impressive 11.8% gain year-to-date. These moves build on a solid foundation, as the company has also delivered a 6.1% total shareholder return over the last year. This may signal that investor confidence could be gradually gaining traction.

If you’re interested in finding stocks with similar upside or renewed momentum, now’s the perfect chance to broaden your investing universe and discover fast growing stocks with high insider ownership

With shares trading about 20 percent below analyst targets and modest underlying growth, is Mattel overlooked by the market, or is optimism already reflected in its price? Is this a genuine buying opportunity, or is future growth already accounted for in the current price?

Mattel is currently trading at a price-to-earnings (P/E) ratio of 14.3x, which reflects how investors value its earnings relative to the share price. At the last close of $19.83, this multiple suggests the stock is attractively priced, especially when compared to its fair value metrics.

The P/E ratio is widely used for consumer durables companies because it helps investors assess how much they are paying for each dollar of earnings. For Mattel, being priced at 14.3x earnings indicates a market expectation of steady, but not exceptional, profit growth.

This valuation appears even more appealing in context, as the industry average stands at 21.2x. This means Mattel is being valued at a significant discount to its global peers. Additionally, our estimated Fair Price-to-Earnings Ratio for Mattel is 15.3x, which is higher than where the shares are currently trading. If market sentiment were to shift toward the fair or industry multiple, the share price could move up meaningfully.

Explore the SWS fair ratio for Mattel

Result: Price-to-Earnings of 14.3x (UNDERVALUED)

However, softer revenue growth or unexpected industry headwinds could quickly offset the current momentum and affect the stock’s valuation in the future.

Find out about the key risks to this Mattel narrative.

Looking at Mattel through the lens of our DCF model offers a sharper contrast. The SWS DCF model estimates a fair value of $46.10 per share, which is substantially higher than the current market price. This suggests the stock could be deeply undervalued if the growth assumptions hold up. Could this large gap signal greater upside, or are investors missing risks hidden in future projections?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Mattel for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 926 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.

Whether you agree with this analysis or prefer drawing your own conclusions from the numbers, you can review the data and shape your own story in just a few minutes, or simply Do it your way

A great starting point for your Mattel research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

Keep your portfolio on the cutting edge by tapping into curated ideas other investors overlook. You might just spot tomorrow’s winners before the crowd catches on.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include MAT.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Erdafitinib (Balversa) had a predictable toxicity profile and showed early efficacy signals in patients with recurrent or progressive IDH wild-type glioma with FGFR-TACC (F3T3) gene fusions, according to findings from the safety run-in cohort of the phase 2 ETCTN 10559 trial (NCT05859334), which were presented at the 2025 Society for Neuro-Oncology Annual Meeting.¹ The agent also generated durable responses in this analysis.

The safety run-in cohort completed therapy in October 2024, and 8 mg daily continuous dosing was identified as the recommended phase 2 dose (RP2D) of erdafitinib. One patient experienced a dose-limiting toxicity (DLT), which was grade 3 central serous retinopathy; this was the only grade 3 treatment-emergent adverse effect (TEAE) reported and was the only TEAE that led to erdafitinib discontinuation. Any TEAEs and grade 1 TEAEs were reported in all patients during the DLT period of cycle 1; no TEAEs were grade 4 or higher. Grade 2 TEAEs included dyspepsia (n = 2), hyperphosphatemia (n = 1), and hyponatremia (n = 1). Grade 1 hyperphosphatemia was common (n = 4). No TEAEs led to erdafitinib dose reductions or treatment interruptions. Notably, 1 patient experienced grade 3 cerebral edema that was deemed unrelated to treatment.

Preliminary efficacy data were available for 5 patients. Best overall responses were complete response (CR; n = 1), partial response (PR; n = 2), stable disease (n = 1), and progressive disease (n = 1).

Erdafitinib in F3T3 Fusion–Positive Glioma: Highlights

• The safety profile of erdafitinib in patients with recurrent or progressive IDH wild-type glioma with F3T3 gene fusions was predictable and within expectations for the agent in other tumor types, leading to the selection of 8 mg daily continuous dosing as the RP2D.

• Erdafitinib showed early efficacy signals and durable responses, with preliminary efficacy data for 5 patients showing best overall responses of CR (n = 1), PR (n = 2), SD (n = 1), and PD (n = 1).

• The investigation of erdafitinib was based on the fact that F3T3 gene fusions are the most prevalent gene fusions in adult glioma and have demonstrated strong oncogenic activity and sensitivity to F3T3 inhibitors in prior studies.

“The safety profile of erdafitinib within gliomas is within [the] expected known safety profile [of the agent] in other tumor types, and we were able to identify durable responses in this population,” lead study author Macarena de la Fuente, MD, stated in the presentation.

de la Fuente is an associate professor of neuro-oncology, chief of the Neuro-Oncology Division, the clinical service leader for the Neuro-Oncology Service Line, chair of the Neuro-Oncology Site Disease Group, the director of the Neuro-Oncology Fellowship Program, and the leader of the Oncology Clinical Service for Neuro-Oncology at the University of Miami Miller School of Medicine and Sylvester Comprehensive Cancer Center in Florida.

What was the rationale for investigating erdafitinib in patients with glioma?

F3T3 gene fusions are the most prevalent gene fusions in adult glioma and are present in approximately 3% to 6% of adult patients with IDH wild-type glioma. F3T3 fusions are truncal alterations that emerge during gliomagenesis and independently predict favorable outcomes in gliomas; these fusions are also retained in recurrent glioblastoma. In vitro and in vivo studies have shown that F3T3 fusions have strong oncogenic activity and sensitivity to F3T3 inhibitors.

Erdafitinib, a potent, oral pan-FGFR TKI, was FDA approved in 2024 for the salvage treatment of patients with locally advanced or metastatic urothelial carcinoma harboring FGFR alterations, as determined by an FDA-approved test, whose disease has progressed during or after treatment with 1 or more prior lines of systemic therapy.² Responses to erdafitinib in patients with glioma have been reported in basket trials, but prior to the ETCTN 10559 study, no clinical trials focused solely on examining the activity of the agent in gliomas harboring F3T3 fusions.¹

What is the design of the ETCTN 10559 trial of erdafitinib in glioma?

This multicenter, single-arm trial enrolled patients with recurrent or progressive F3T3 fusion–positive glioma. The trial was designed to have 2 safety lead-in cohorts. Cohort 1 (n = 6) evaluated the agent at a continuous dose of 8 mg daily. If at least 2 DLT events were observed, patients would be enrolled in the safety lead-in cohort 2 (n = 6) and receive erdafitinib at a continuous daily dose of 6 mg; if 1 or no DLT events were observed in either cohort, an additional 21 patients would be enrolled in the dose-expansion cohort. If at least 2 DLT events were observed at the 6-mg dose level, the trial would be stopped.

The presently reported cohort determined the safety, tolerability, and RP2D of erdafitinib at the 8-mg dose in this population.

Patients had a mean age of 63.3 years (standard deviation, 6.9) and a median age of 64 years (range, 52-72). Three patients each were male and female. Most patients were White (n = 5) and not Hispanic or Latino (n = 4). All patients had grade 4 glioblastoma and had received prior radiation and prior temozolomide. Most patients had a Karnofsky performance score of 90 (n = 5), and 2 patients each had received 1, 2, and 3 prior lines of therapy.

What do case studies show about the efficacy of erdafitinib in glioblastoma?

de la Fuente highlighted results from 2 case studies from the safety run-in cohort. One patient was a 60-year-old woman with recurrent World Health Organization (WHO) grade 4 F3T3 fusion–positive glioblastoma. This patient underwent biopsy, then received radiotherapy plus temozolomide, followed by 6 cycles of adjuvant temozolomide. At 15 months from her initial diagnosis, this patient presented with clinical and radiographic disease. She enrolled in ETCTN 10559 in April 2024 and completed over 19 cycles of therapy. Treatment is ongoing in this patient, who achieved a PR at cycle 1 and a CR at cycle 13.

The second case study involved a 68-year-old man with IDH wild-type, F3T3 fusion–positive, WHO grade 4 glioblastoma that was MGMT promoter unmethylated. This patient underwent subtotal resection of a right parieto-temporal mass, then received 3 weeks of hypofractionated radiotherapy with concurrent temozolomide, followed by 4 cycles of adjuvant temozolomide. He enrolled in ETCTN 10559 in October 2024 and achieved a PR at cycle 8.

What are the next steps for investigating erdafitinib in patients with glioma?

The dose-expansion cohort of this phase 2 trial began enrollment in February 2025. In total, 90% of the planned 21 patients have been enrolled, and 12 clinical trial sites have been activated.

References

1. de la Fuente M, Bhatia A, A phase 2 study of erdafitinib in patients with recurrent or progressive IDH-wild type glioma with FGFR-TACC gene fusions: safety run-in cohort results. Presented at: 2025 SNO Annual Meeting; November 19-23, 2025; Honolulu, Hawaii. Abstract CTNI-61.
2. FDA approves erdafitinib for locally advanced or metastatic urothelial carcinoma. FDA. January 19, 2024. Accessed November 22, 2025. https://www.fda.gov/drugs/resources-information-approved-drugs/fda-approves-erdafitinib-locally-advanced-or-metastatic-urothelial-carcinoma

Story Continues

ITV’s stock narrative has shifted recently, as the company’s price target remains steady at £0.80 per share while several key assumptions have adjusted. A slightly lower discount rate and slower revenue growth reflect both persistent caution and underlying confidence among analysts. Read on to see what is driving these changes and how you can stay informed as ITV’s story continues to unfold.

Analyst Price Targets don’t always capture the full story. Head over to our Company Report to find new ways to value ITV.

🐂 Bullish Takeaways

• JPMorgan maintained its Overweight rating on ITV shares, indicating continued confidence in the company’s longer-term value proposition.

• Analysts highlight ITV’s ability to navigate market conditions, pointing out its steady execution and efforts to maintain operational transparency.

🐻 Bearish Takeaways

• JPMorgan lowered its price target for ITV to 105 GBp from 112 GBp. This reflects some reservations around near-term growth prospects and challenges ahead.

• Concerns persist that ITV’s current valuation may already reflect much of the anticipated upside. Ongoing market caution continues to influence target adjustments.

Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there’s more to the story. Head to the Simply Wall St Community to discover more perspectives or begin writing your own Narrative!

• Comcast is reportedly in discussions to acquire ITV’s media and entertainment division, which could lead to significant changes within the UK’s broadcasting landscape.

• ITV has confirmed that it is engaged in early-stage talks with Sky Limited for a possible sale of its media and entertainment business, with a reported enterprise value of £1.6 billion. No agreement has been finalized.

• If a sale proceeds, it would include ITV’s terrestrial channels and streaming service ITVX, while ITV Studios, the production arm, would remain under ITV’s ownership.

• Negotiations are ongoing with several interested parties, including Comcast, but there is no certainty that any deal will ultimately be reached.

• Fair Value remains unchanged at £0.80 per share.

• The Discount Rate has decreased slightly from 7.25% to 7.15%.

• Revenue Growth has fallen modestly from 2.69% to 2.63%.

• Net Profit Margin has edged down from 6.27% to 6.15%.

• The future P/E ratio has risen slightly from 15.76x to 16.06x.

A Narrative is a simple, powerful tool that lets investors connect the story behind a company to the numbers, such as future revenue, earnings, and fair value. Available on Simply Wall St’s Community page, Narratives make it easy to see how a company’s outlook changes with new news or results. By tracking Fair Value versus Price, investors can decide when to buy or sell while updates flow in dynamically.

Ready for the full story? Read the original ITV Narrative to see why investors are following along for:

• Real-time updates as ITV’s digital transformation and media sale talks reshape market expectations

• Insights into how cost controls, global content growth, and digital partnerships impact future earnings and margins

• Key risks from advertising shifts, increased competition, and regulatory changes, plus how these affect ITV’s valuation and your next decision

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include ITV.L.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Victoria’s Secret (VSCO) has caught the attention of investors following recent moves in its stock price. The past month has delivered a gain of 11%, while the past three months show a 69% jump. This reflects strong market interest.

See our latest analysis for Victoria’s Secret.

Victoria’s Secret has surged into the spotlight with momentum building over the past quarter. While the 90-day share price return stands out at nearly 69%, the stock still posts a negative total shareholder return of just over 1% in the past year. That recent burst of optimism suggests investors may be betting on a turnaround or re-rating of the brand as sentiment shifts from last year’s sluggish run.

If you’re watching this strong move and keen to see what else is unfolding across the market, now is a great time to broaden your search with fast growing stocks with high insider ownership

But with shares now well above most analyst targets and only a modest lift in annual revenue, the key question is whether Victoria’s Secret is now trading at a bargain or if the market has already factored in stronger future growth.

Compared to Victoria’s Secret’s last close price, the most widely followed narrative places fair value much lower, signaling the recent rally has pushed shares well above what consensus numbers support. The narrative sets a clear calculation for why this is the case.

The analysts have a consensus price target of $22.7 for Victoria’s Secret based on their expectations of its future earnings growth, profit margins, and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $27.0, and the most bearish reporting a price target of just $17.0.

Read the complete narrative.

Could a slowdown in earnings and a high projected profit multiple really justify the gap between narrative value and market price? The assumptions driving this calculation center on how the company will balance modest revenue growth with tighter margins in the coming years. See what’s behind the numbers.

Result: Fair Value of $22.7 (OVERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, persistent tariff pressures and ongoing declines in mall traffic could still threaten Victoria’s Secret’s ability to sustain recent gains and margin improvements.

Find out about the key risks to this Victoria’s Secret narrative.

Our SWS DCF model puts Victoria’s Secret’s fair value at $48.49, which is well above the current share price. This suggests shares could be undervalued if the underlying cash flow assumptions play out. The key question is whether these longer-term projections can offset concerns about slower earnings growth.

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Victoria’s Secret for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 925 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.

If you want to test these numbers for yourself or craft your own perspective, building a personal narrative takes just a few minutes. Do it your way

A great starting point for your Victoria’s Secret research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

Don’t settle for one idea when there’s a world of growth stocks and fresh trends waiting for you. Use the Simply Wall Street Screener to uncover unique opportunities that could boost your portfolio’s potential.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include VSCO.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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Global banks are buying up stakes in Indian lenders as the country’s government and regulators become increasingly relaxed about foreign entities acquiring significant holdings.

Since the start of the year, India’s financial sector has had $8bn worth of deals from foreign companies, up from $2.3bn last year and $1.4bn in 2023, according to Dealogic data.

The transactions reflected growing investor confidence in India’s economy and had “opened up a new chapter” in Indian banking, said analysts at Mumbai-based Motilal Oswal Financial Services in a note.

They come as officials have laid out ambitions to consolidate the sector, with finance minister Nirmala Sitharaman this month saying the government wanted to create more “big banks”.

The central bank has said it is reviewing whether to relax a 15 per cent shareholding cap by any single foreign investor in a non-government-owned lender, although it has already been approving large sales on a case-by-case basis.

The sector’s biggest cross-border deal this year was the $3bn acquisition of a 60 per cent stake in mid-sized bank RBL by Dubai’s largest lender, Emirates NBD. Japan’s Sumitomo Mitsui Financial Group bought a 24.2 per cent stake in Yes Bank for about $1.7bn, becoming its biggest shareholder.

Mitsubishi UFJ Financial Group, Japan’s largest lender by assets, is in advanced talks with multiple non-banking financial groups for the purchase of a large stake, according to people familiar with the matter.

Although there have been reports of negotiations between MUFG and Chennai-based Shriram Finance for a 20 per cent stake worth $2.6bn, the people said the deal was yet to be finalised and MUFG was still exploring other options. “The situation is still fluid,” said one of the people.

MUFG declined to comment. Shriram said it was “not aware of any developments on this front”.

Foreign banks are casting a keener eye on India’s financial groups because of the country’s robust economic growth, according to Yatin Singh, chief executive of investment banking at Emkay Global Financial Services in Mumbai. He noted that likely targets included a handful of public sector banks that the government would like to privatise.

“For mature economies like Japan, which now have an ageing population and have capital, they need to find a way to deploy that capital in a way where the risk-adjusted return makes sense,” he said. “India is in that way an attractive option.”

Vikram Raghani, senior partner at JSA, an Indian law firm that has been involved in recent banking deals, said previous mergers and acquisitions might have involved lenders that were “in some kind of stress”.

“Now the mindset of the regulator and the government appears to be changing to allow banks to tap into global capital for growth and expansion,” he said. “If our banks have to go to the next level, they will need capital and international expertise.”

A person familiar with the Reserve Bank of India’s thinking said it was coming around to more foreign participation, calling the recent spate of deals a “vote of confidence” in India’s economy and banking sector.

The person added that overseas investors were targeting mid-sized banks that were easier to acquire and had more room to grow.

A partner at one of India’s leading venture capital firms said shadow banks were also garnering interest after the RBI eased restrictions put in place in 2023 in response to a post-pandemic credit binge that left many households in debt.

Since the industry’s recovery, the RBI has been telling shadow banks “you can go ahead and expand your books and grow faster”, the partner said.

One of the biggest deals this year involved Indian shadow bank Sammaan Capital, in which International Holding Company, the Middle East’s second-largest company by market value, purchased a controlling 43.5 per cent stake for $1bn.

Kunal Shroff, managing partner at private equity firm ChrysCapital, said valuations in India’s financial services sector looked attractive compared with the rest of the country’s market.

Indian equities trade at 23 times 12-month forward earnings, making it the world’s most expensive emerging market, while the country’s financial companies trade at 17 times, according to Goldman Sachs analysts.

“There’s enough credit demand,” said Singh at Emkay. “Whichever [lending] segment you pick up, you’d find a very, very large opportunity over the next 15, 20, 25 years. Anyone who’s buying a bank in India is taking, I’m sure, a 50-year view.”