Equitas Small Finance Bank Ltd. share price target

Gross advances grew 7.8% YoY, driven by strong momentum in small business loans (+21.9% YoY), used vehicle finance (+50.2% YoY), and housing finance (+12.0% YoY). Deposits rose 18.3% YoY, though slower CASA growth (+11.3% YoY) led to a 1.8% YoY...

We maintain our BUY recommendation on reasonable valuations.

Equitas SFB (Equitas)’s financial performance continues to be marred by elevated credit cost and a >20% QoQ decline in the high-yielding MFI portfolio.

Equitas continued to post dismal results, as it slipped into loss of Rs2.2bn, mainly due to persistent higher MFI/non-MFI stress and accelerated standard provisions on MFI loans (Rs1.9bn, mainly to ease provisioning in 9MFY26).

Equitas SFB (EQUITASB) reported a net loss of INR2.24b vs our estimate of PAT of INR220m, driven by a sharp rise in provisions due to stress in MFI and changes in the provisioning policy.

We recommend a BUY rating on the stock with a target price of Rs 74/share, implying an upside of 11% from the CMP.

expected to support earnings recovery. The bank is projected to exit FY26 with a Return on Assets (ROA) of 1% and sustain an ROA above 1% throughout FY27. With stress in the microfinance segment subsiding, we assign an "Accumulate" rating to the stock, with a target price of 68, based on 1.1x FY27E Book Value per Share (BVPS)....

We upgrade our rating to BUY from HOLD earlier.

Equitas SFB (EQUITASB) reported 4QFY25 PAT of ~INR421m, down 37% QoQ and 43% below our est., due to lower other income and higher-thanexpected provisions.

Rising share of diversified and secured portfolio with MFI mix likely to decline further; scaling up granular deposit franchise

We maintain our HOLD recommendation on the stock.

Equitas SFB (EQUITASB) reported 3QFY25 PAT of ~INR663m (-67% YoY; 17% miss to MOFSLe) amid lower other income, partially offset by slightly lower provisions.

We maintain our HOLD recommendation on the stock.

Equitas SFB (EQUITASB) reported 2QFY25 PAT of ~INR129m (-93.5% YoY; 93% miss on MOFSLe) as the bank made additional provision of INR1.46b toward the MFI segment.

Equitas Small Finance Bank (EQUITASB) has demonstrated a strong business growth trajectory with a 26% CAGR in its loan book and 38% CAGR in deposits from FY22-FY24.

We revise our recommendation to HOLD from BUY earlier.

Equitas SFB (EQUITASB) reported a 1QFY25 PAT of ~INR0.3b (-87% YoY), 85% lower than MOFSLe amid higher floating provisions, as the bank reduced its NNPA to <1% and raised PCR to >70%.

Equitas SFB continues to report subdued credit growth at 20% YoY mainly due
to slower growth in the new CV and NBFC segments, which coupled with
elevated funding cost has led to further deterioration in NIM by 20bps QoQ to
8.2%.