The 5 reports from 2 analysts offering long term price targets for Equitas Holdings Ltd. have an average target of 95.00. The consensus estimate represents an upside of 77.90% from the last price of 53.40.
|Summary||Date||Stock||Broker||Price at Reco.||Target||Price at reco|
Change since reco(%)
|2020-05-17||Equitas Holdings Ltd.||Motilal Oswal||44.25||65.00||44.25 (20.68%)||21.72||Buy|
17 May 2020 In 4QFY20, EQUITAS provided higher than required provisions toward COVID-19, which affected earnings despite strong NII/PPoP growth. Inspite of the lockdown in the last few days of Mar20, AUM growth was steady at 31% YoY. We remain cautious of EQUITAS asset quality trends in the near term as 98.3% of borrowers have availed moratorium (93% of portfolio value). We cut our FY21/FY22E PAT estimate to primarily factor in higher delinquency trend and moderation in loan growth. Maintain Buy. 4QFY20 PAT stood at ~INR430m (33% YoY decline, 41% below estimates) affected by higher provisions (INR996m) toward COVID-19. However, NII grew 35% YoY to INR4.2b led by gross AUM growth of 31% YoY. NIMs for FY20 improved by 56bp to 9.1%. During FY20, NII/PPoP/PAT grew ~30%/40%/16% YoY. Total opex increased 14% YoY to INR3.1b, led by ~28% YoY growth in staff expense while total revenues increased 26% YoY.
|2020-02-04||Equitas Holdings Ltd.||Nirmal Bang||114.30||125.00||114.30 (-53.28%)||134.08||Accumulate|
With visible ROE expansion to 16.7% in FY22E on the back of strong AUM growth and lower opex, we believe Equitas SFB's valuations will gravitate towards that of SFBs, banks and NBFCs demonstrating similar growth and profitability. We remain positive on the stock given strong earnings growth of 40% CAGR over FY20-22E. We value Equitas SFB at 2.5x FY21E Adj. BV and thus Equitas Holdings at a 50% discount to SFB, at Rs. 125, post factoring the holdco discount.
|2019-11-18||Equitas Holdings Ltd.||Nirmal Bang||88.60||122.00||88.60 (-39.73%)||128.46||Buy|
|2019-08-19||Equitas Holdings Ltd.||Nirmal Bang||110.95||147.00||110.95 (-51.87%)||175.28||Buy|
Equitas Holdings reported another operationally sound quarter. AUMs stood at Rs. 12,355 Cr, a growth of 38% YoY and 4% QoQ. Growth was mainly driven by Small Business Loans which grew by 52% YoY (33% mix) while Vehicle Finance grew by 28% YoY (25% mix), mainly due to sharp increase in the new CV book. The share of microfinance continued to reduce to 25% of the book and grew by 29% YoY. Among the new businesses, Corporate grew by 118% (4% mix) while Agri grew by 66% (5% mix), albeit on a smaller base....
|2019-08-05||Equitas Holdings Ltd.||Motilal Oswal||103.85||140.00||103.85 (-48.58%)||162.17||Buy|
Lower other income, higher provisions lead to PAT miss: EQUITAS reported PAT of INR619m (+75% YoY), missing our estimate by 15% due to lower other income and higher provisions. Other income declined 6% YoY to INR578m on account of lower fees, as the bank did not sell any PSLC certificates in the quarter. PPoP increased 65% YoY, led by 35% YoY growth in NII (INR3.4b; in-line). Lending spreads/NIM shrank ~20bp/25bp QoQ to 10.5%/8.6%, as the cost of funds increased 10bp QoQ. Total opex increased 15% YoY to INR2.8b, mainly led by higher staff expense (+21% YoY). Cost-income ratio, thus, remained elevated at...
|2019-05-14||Equitas Holdings Ltd.||Nirmal Bang||126.50||187.00||126.50 (-57.79%)||Buy|
Equitas Holdings reported another all-round healthy quarter. AUMs stood at Rs. 11,834 Cr, a growth of 44% YoY and 9% QoQ. Growth was mainly driven by Micro LAP which grew by 74% YoY (32% mix) while Vehicle Finance grew by 30% YoY (25% mix), mainly due to sharp increase in the new CV book. Microfinance grew by 34% YoY (26% mix). Among the new businesses, Corporate grew by 151% (4% mix) while Agri grew by 84% (4% mix), albeit on a smaller base. We expect the company to maintain its loan growth momentum and grow its AUM at 33% CAGR over FY19-21E....
|2019-02-05||Equitas Holdings Ltd.||Nirmal Bang||121.00||186.00||121.00 (-55.87%)||Buy|
Equitas Holdings reported an all-round healthy quarter. AUMs stood at Rs. 10,861 Cr, a growth of 41% YoY and 9% QoQ. Growth was mainly driven by Micro LAP which grew by 61% YoY (32% mix) while Vehicle Finance grew by 26% YoY (25% mix) and Microfinance grew by 20% YoY (27% mix). Among the new businesses, Corporate grew by 244% (4% mix) while Agri grew by 121% (4% mix). We expect the company to maintain its loan growth momentum and grow its AUM at 35% CAGR over FY18-21E. Key highlight during the quarter was the expansion in NIMs to 8.98%, +121...
|2019-02-04||Equitas Holdings Ltd.||Motilal Oswal||120.50||150.00||120.50 (-55.68%)||Buy|
4 February 2019 of 198%/14% YoY/QoQ to INR1.2b (largely in line with our estimates), driven by 37%/16% YoY/QoQ growth in NII. Lending spreads improved 49bp QoQ to 11.2%, while NIM stood at 8.98% (+128bp QoQ) on the back of 62bp improvement in cost of funds. Total opex grew 17%/12% YoY/QoQ to INR2.6b (5% above MOSLe) led by 40% YoY growth in other opex (paid PSLC premium of INR238m). Cost- income ratio, thus, remains elevated at 68.2% (39bp QoQ decline). Total AUMs grew 41%/9% YoY/QoQ to INR108.6b, with share of microfinance AUM at 27.2% of total AUM v/s 32% in 3QFY18. However, on an absolute basis, MFI AUM registered 9% QoQ growth (20% YoY) to INR29.5b. Non-MFI AUM registered robust 50%/9% YoY/QoQ growth to INR79.
|2019-01-17||Equitas Holdings Ltd.||Nirmal Bang||119.10||181.00||119.10 (-55.16%)||Buy|
Best of both worlds: yield of NBFCs, cost of banks Equitas offers a unique opportunity to participate in a business model that offers nimbleness and pricing power of an NBFC on one hand and the deposit generating ability of a bank on the other. Equitas has successfully diversified across 9 products with its core focus on self-employed individuals and micro...
|2018-04-30||Equitas Holdings Ltd.||Motilal Oswal||154.95||185.00||154.95 (-65.54%)||Buy|
Strong signs of profitability pick-up driven by lower opex and credit costs Operating expenses have started stabilizing: Equitas (EQUITAS) reported PPoP growth of 62%/42% QoQ/YoY (INR675m, off a low base), driven by strong cost control (cost-to-income ratio declined to a multi-quarter low of 77%). Total income increased 6.5%/20.3% QoQ/YoY (NII growth of 12% YoY, other income growth of 111% YoY, driven by higher share of liability fees). Provisions were controlled at INR139m, leading to PAT of INR348m. Balance sheet de-risking continues: In keeping with the goal of reducing the...
|2018-02-06||Equitas Holdings Ltd.||Axis Direct||136.50||185.00||136.50 (-60.88%)||Buy|
Equitas posted a loss of Rs 300 mn in Q3FY18, as it accelerated provisions worth Rs 700 mn on its demonetization-hit microfinance portfolio. Consequently, PAT was sharply below our estimate of Rs 113 bn, as provisions were originally intended to be amortized over few quarters. Asset quality improved
|2018-02-01||Equitas Holdings Ltd.||HDFC Securities||151.25||165.00||151.25 (-64.69%)||Target met||Neutral|
We maintain Neutral stance with a TP of Rs 165 (2.3x Dec'19E ABV). Equitas 3QFY18 performance came in largely in-line with our expectations. The loan book grew by 5.4% QoQ (7.5% YoY), as the company continued to focus on the Non-MF (secured) book. CASA growth was very strong at 37.5%, and contributed 14.6% to total interest liabilities.
|2018-02-01||Equitas Holdings Ltd.||Motilal Oswal||151.25||205.00||151.25 (-64.69%)||Buy|
Equitas (EQUITAS) reported a loss of INR300m, as the bank chose to provide completely on its delinquent micro finance (MF) book, increasing the coverage ratio on the latter to 96%. PPoP declined 7% QoQ, as total income (INR2.7b) growth of 4% QoQ lagged opex growth of 6% QoQ (INR2.3b). The bank provided a total of INR869m during the quarter (INR700m toward MF book), effectively up-fronting all credit costs on the same. Balance sheet de-risking continues:In line with the goal of diversifying the loan book, micro finance AUMs fell to 32% of total v/s 36% in 2QFY18, as MF AUM declined 6.6% QoQ to INR24.7b, while vehicle finance and M-LAP/LAP AUMs grew 4.2% and 11.5% QoQ, respectively. Total AUM/loan book grew 7.5%/22.2% YoY (securitized book share fell to 6.8%). Unsecured AUMs fell to 36% v/s 39% in 2Q, with robust growth in secured lending products.
|2017-11-03||Equitas Holdings Ltd.||Axis Direct||146.50||168.00||146.50 (-63.55%)||Target met||Buy|
Q2FY18 was weak marked by sluggish growth in loan book (~14% YoY) and further deterioration in asset quality (GNPAs up 85 bps QoQ at 5.76%). Consequently, PAT was 76 YoY lower than estimate (Rs 109 mn).
|2017-10-31||Equitas Holdings Ltd.||HDFC Securities||147.10||160.00||147.10 (-63.70%)||Target met||Neutral|
We maintain our NEUTRAL stance with a TP of Rs 160 (2.25x Sept'19E ABV). Equitas 2QFY18 performance came in largely in-line with our expectations. The loan book grew by 4.1% QoQ (3.5% YoY), as the company continued to focus on the Non-MF (secured) book. The share of the MFI book further declined to 36% from 42% in 1QFY18. Collection efficiency of the MF book stood at 94.6%. Operating cost declined 4% QoQ.
|2017-08-04||Equitas Holdings Ltd.||Axis Direct||167.90||184.00||167.90 (-68.20%)||Buy|
|2017-08-02||Equitas Holdings Ltd.||HDFC Securities||163.35||150.00||163.35 (-67.31%)||Target met||Neutral|
We downgrade to NEUTRAL with a lower TP of Rs 150 (2.25x FY19E ABV). Equitas 1QFY18 performance was muted, owing to the twin impact of a decline in growth of the MFI segment and higher operating costs of liability branches. Collection efficiency of the MFI book stood at 94.6%. Disbursements were almost flat QoQ, owing to caution exercised in the MFI portfolio. AUM declined marginally QoQ at Rs 70.4bn, while NII declined by 10.5/4.8% QoQ/YoY. Non-interest Income was up sharply, owing to PSLC fee income of Rs 600mn. Opex cost further increased by 17.5% QoQ, owing to the rollout of 51 new liability branches, along with new products.
|2017-05-15||Equitas Holdings Ltd.||Axis Direct||162.90||190.00||162.90 (-67.22%)||Buy|
Q4FY17 was subdued due to moderation in AUM growth, significant decline in margin and further deterioration in headline asset quality. Additionally, higher operating expenses (due to opening of liability branches)
|2017-05-08||Equitas Holdings Ltd.||HDFC Securities||160.95||176.00||160.95 (-66.82%)||Target met||Buy|
Equitas 4QFY17 performance was muted, as the MFI segment continued to be impacted by lower collections post demonetisation. Collection efficiency of the MFI book stood at 95.8% (98.4% in 3QFY17), as compared to the normal level of 99% . Disbursements were down QoQ, owing to a cautious stance on the MFI portfolio, whose share declined 350bps to 45.3%.
|2017-02-21||Equitas Holdings Ltd.||HDFC Securities||181.75||210.00||181.75 (-70.62%)||Buy|
Equitas Holdings, headquartered in Tamil Nadu, is a lender to underserved segments in urban, semi-urban and rural India. With an AUM of Rs 72bn, it provides Microfinance, Used CV Vehicles, MSE and Housing Finance loans.