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Hold AU Small Finance Bank; target of Rs 700: Sharekhan

Sharekhan recommended Hold rating on AU Small Finance Bank with a target price of Rs 700 in its research report dated March 19, 2024.

March 20, 2024 / 02:09 PM IST


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Sharekhan's research report on AU Small Finance Bank

Most importantly, the management was confident on the asset quality trends across its business verticals and laid down the road map for the merged entity over the next three years. Credit cost across business verticals are converging to pre-COVID levels. In the credit cards business, the effect of recalibration in underwriting is visible in early delinquency data for newer origination RoA/RoE to improve gradually over the next 3 years for the merged entity. The stock is currently trading at 2.2x/1.9x its FY2025E/FY2026E ABV.


We retain a Hold rating on AU SFB with a revised PT of Rs. 700. Near term focus remains on smooth integration with all the verticals of Fincare SFB.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

AU Small Finance Bank - 20032024 - khan

Broker Research
first published: Mar 20, 2024 11:30 am

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