Au Small Finance Bank Ltd. share price target

We maintain our BUY recommendation on the stock and value AUSFB at 4.7x FY24E ABV to arrive at a target price of Rs 1,425/share, implying an upside of 12% from CMP.

Background: AU SFB, initially incorporated as a vehicle finance company in 1996, was transformed into a Small Finance Bank in April 2017. The bank has presence in 15 states and 2 union territories, with 794 branches, 470 ATMs, 31 asset centers and ~6,59,904 loan accounts. The bank offers a comprehensive and tailor made range of products (both asset and liability) and services to cater to the needs of various businessmen (SME and MSME) and other middle and low...

We retain our BUY recommendation on the stock with a revised TP of Rs 1,285 (4.3x FY24E ABV), implying an upside of 11% from CMP.

Background: AU SFB, initially incorporated as a vehicle finance company in 1996, was transformed into a Small Finance Bank in April 2017. The bank has presence in 15 states and 2 union territories, with 742 branches, 440 ATMs, 31 asset centers and ~6,59,904 loan accounts. The bank offers a comprehensive and tailor made range of products (both asset and liability) and services to cater to the needs of various businessmen (SME and MSME) and other middle and low...

We introduce FY24 estimates. We maintain our BUY recommendation on the stock and value AUSFB at 4.6x FY24E ABV and arrive at a target price of Rs 1,375/share, implying an upside of 10% from CMP.

Additions to the existing restructured pool, Credit cost outlook for FY22E and management commentary around the progress in the ONAN pool remain key monitorables. We currently have a BUY recommendation on the stock with a target price of Rs. 1105/share.

We maintain a BUY on the stock and value it at 4.3x FY23E ABV to revise the target price to Rs. 1105, implying an upside of 10% from CMP.

AUBANK reported a weak 4QFY21, with earnings impacted by one-offs in the form of higher interest reversals and increase in opex, led by ESOPrelated expenses. However, business momentum was robust, with retaildeposit mix improving further. Asset quality developments: GNPA/NNPA increased to 4.3%/2.2%, led by tagging of customers who are less than 90dpd and paying, but was once NPA ('ONAN') during prior quarters. However, CE and customer activation rate moved higher than pre-COVID levels. We remain watchful of asset quality in the near term and cut our FY22E/FY23E earnings by 20%/17% to factor in higher credit cost. Maintain Buy....

AU Small Finance Bank (AUBANK) reported below-estimated Q4FY21 PAT of Rs 1.7bn due to slower NII growth and one-off employee cost.

We expect AU Small Finance Bank's (AUBANK) longstanding expertise in vehicle finance and successful extension into secured business loans to aid a 22% loan CAGR over FY20-FY23.