Sharekhan has given Buy recommendation for AU Small Finance Bank with a target price of Rs. 1425 in its research report issued on Feb 16, 2022

Sharekhan’s research report on AU Small Finance Bank

Q3 performance was strong across business metrics. NII grew by 30% y-o-y and 9% q-o-q with NIMs expanding by 40 bps y-o-y and 30 bps q-o-q to 6.3%. Asset quality improved with GNPA and NNPA ratios declining by 56 bps q-o-q and 36 bps q-o-q to 2.6% and 1.3%, respectively, driven by better collection efficiency of 106% in Q3FY22. PCR stood at 51% versus 49% in Q2FY22. The bank formalised 10 strategic business units with independent leadership and which will operate as a separate profit centres with an objective to drive growth.


At the CMP, it is available at 4.7x/3.9x its FY2023E/FY2024E BVPS. We maintain a Buy on the stock with a revised PT of Rs. 1,425.

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At 13:50 hrs AU Small Finance Bank was quoting at Rs 1,290.80, up Rs 14.40, or 1.13 percent.

It has touched an intraday high of Rs 1,292.10 and an intraday low of Rs 1,253.00.

It was trading with volumes of 12,017 shares, compared to its thirty day average of 60,921 shares, a decrease of -80.27 percent.

In the previous trading session, the share closed down 2.43 percent or Rs 31.80 at Rs 1,276.40.

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 9.14 percent below its 52-week high and 41.85 percent above its 52-week low.

Market capitalisation stands at Rs 40,514.16 crore.

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