Motilal Oswal has given Buy recommendation for AU Small Finance Bank recommended buy rating on the stock with a target price of Rs 1550 in its research with a target price of Rs. 1550 in its research report issued on Mar 10, 2022

Motilal Oswal’s research report on AU Small Finance Bank

We attended AUBANK’s virtual meet where the management highlighted how the improved digital capabilities are helping the bank transform by driving business growth, while delivering superior customer experience. AUBANK has divided its business into 10 SBUs, where each SBU will have its own structure/growth strategy underpinned by shared verticals and support functions. In today’s session, the bank dwelled upon its two critical SBU’s – Wheels and Home loans. The bank has been working on scaling up its digital banking across product range, which is aiding sustainable growth. Please find below the key takeaways from the session.

Outlook

We maintain our BUY rating with a TP of INR1,550 (premised on 4.5x FY24E BV), implying 33% potential upside.

More Info

At 12:39 hrs AU Small Finance Bank was quoting at Rs 1,175.85, up Rs 14.25, or 1.23 percent.

It has touched an intraday high of Rs 1,183.45 and an intraday low of Rs 1,134.40.

It was trading with volumes of 52,630 shares, compared to its thirty day average of 45,416 shares, an increase of 15.88 percent.

In the previous trading session, the share closed up 1.33 percent or Rs 15.25 at Rs 1,161.60.

The share touched its 52-week high Rs 1,420.65 and 52-week low Rs 910.00 on 03 February, 2022 and 05 May, 2021, respectively.

Currently, it is trading 17.23 percent below its 52-week high and 29.21 percent above its 52-week low.

Market capitalisation stands at Rs 36,906.24 crore.

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