34.90 0.10 (0.29%)
NSEDec 04, 2020 03:31 PM
The 5 reports from 5 analysts offering long term price targets for Equitas Small Finance Bank Ltd. have an average target of 41.00. The consensus estimate represents an upside of 17.48% from the last price of 34.90.
|Summary||Date||Stock||Broker||Price at Reco.||Target||Price at reco|
Change since reco(%)
|2020-12-03||Equitas Small Financ.. +||Axis Direct||34.80||41.00||34.80 (0.29%)||17.48||Buy|
Strong non-microfinance led AUM growth, ramp-up in low-cost deposits on the back of a revamped liability strategy, visibility in improvement in ROA/ROE to upwards of 2%/16% resp. in the long term with operating leverage kicking in and an experienced and competent management are key positives.
|2020-10-20||Equitas Small Financ.. +||HDFC Securities||IPO Note|
Equitas Small Finance Bank Limited - IPO Note Issue Open: Oct 20 Oct 22, 2020 Price Band: Rs. 32 33 Issue Size: 156,848,485 eq shares (Fresh Issue of 84,848,485 eq sh + Offer for Sale of 72,000,000 eq sh ) Issue Size: Rs. 501.9 517.6 cr Reservation for: QIB Upto 50% eq sh Non Institutional atleast 15% eq sh Retail atleast 35% eq sh Employee Reservation: Rs.1 cr EHL Shareholder Reservation: Rs 51.0 cr Face Value: Rs 10 Book value: Rs 26.47 (June 30, 2020) Bid size: - 450 equity shares and in multiples thereof
|2020-10-20||Equitas Small Financ.. +||Nirmal Bang||IPO Note|
Equitas has successfully reduced the microfinance mix in its loan book from 54% in FY16 to 23% today. Its diversified loan book, adequate capital, experienced management and conservative approach to minimize risk, provides Equitas a long runway for profitable growth. Equitas' transition to a SFB during FY16-18 resulted in lower AUM growth (16% CAGR) and higher opex growth (57% CAGR), translating to lower return ratios. However, post the conversion, Equitas stepped up its loan growth to 37% CAGR over FY18-20, while opex growth remained subdued at 16% CAGR. This resulted in cost/income declining from 80%in FY18 to 66% in FY20 and a simultaneous increase in ROE from ~2% in FY18 to ~9% in FY20. We believe Equitas SFB can deliver top quartile ROE of 15%+ in the long term (by FY23E) driven by a decline in cost/Income to below 60% from 66% in FY20 and normalization of credit costs to ~1.5% from 1.9% in FY20. Equitas SFB is available at a 30% discount compared to listed peers. We recommend to Subscribe for long term'.
|2020-10-20||Equitas Small Financ.. +||Ventura||IPO Note|
|2020-10-19||Equitas Small Financ.. +||ICICI Securities Limited||IPO Subscribe|