Time period given by analyst is one year when Au Small Finance Bank price can reach defined target.
Au Small Finance Bank Ltd., incorporated in the year 1996, is a banking company (having a market cap of Rs 38930.91 Crore).
Financials
For the quarter ended 30-06-2021, the company reported a Standalone Total Income of Rs 1537.68 Crore, down -2.00 % from last quarter Total Income of Rs 1569.01 Crore and up 9.06 % from last year same quarter Total Income of Rs 1409.91 Crore. The bank reported net profit after tax of Rs 203.20 Crore in latest quarter.
Investment Rationale
Asset quality trends were stable sequentially in a challenging environment, with slippages at INR2.5b (annual slippage ratio ~2.9%), while higher reductions of ~INR2.6b led to stable asset quality ratios. Collection efficiency stood at 101% in 1QFY22, which improved further in Jul’21. Total restructured book increased to 3.6% of loans. We increase our FY22E/FY23E earnings estimate by ~8%/~11%, and expect a RoA/RoE of 1.9%/17.6% in FY23E.
Promoter/FII Holdings
Promoters held 28.4 per cent stake in the company as of the fourth quarter ending March 31, 2021, while FIIs held 4.5 per cent, DIIs 14.5 per cent and public & others 22.2 per cent.
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