Au Small Finance Bank Ltd., incorporated in the year 1996, is a banking company (having a market cap of Rs 37628.80 Crore).
Au Small Finance Bank Ltd. key Products/Revenue Segments include Interest & Discount on Advances & Bills, Income From Investment, Interest and Interest On Balances with RBI and Other Inter-Bank Funds for the year ending 31-Mar-2021.
For the quarter ended 31-12-2021, the company reported a Standalone Total Income of Rs 1772.09 Crore, up 11.06 % from last quarter Total Income of Rs 1595.65 Crore and down -7.92 % from last year same quarter Total Income of Rs 1924.53 Crore. The bank reported net profit after tax of Rs 302.05 Crore in latest quarter.
The brokerage believes the SBU structure will help AU have a differentiated approach in each of its businesses and customer journeys, and carve a niche for itself. Considering an adequate provision buffer of 2.8% of loans against stress pool of 5.7% (GNPL at 2.6% + standard restructured loans at 3.1%), focus on tapping upcoming growth opportunities (9MFY22 AUM growth at 11%) and healthy profitability (9MFY22 RoE at 16%), it upgrades the stock to BUY with an unchanged target price of Rs1,370. It is currently trading at 4.2x / 3.6x FY23E / FY24E P/BV, respectively, and it values it at 4.2x FY24E BVPS.
Promoters held 28.33 per cent stake in the company as of 31-Dec-2021, while FIIs owned 33.21 per cent, DIIs 19.99 per cent.
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