AU Small Finance Bank Adjusts Valuation Grade Amid Competitive Market Landscape

AU Small Finance Bank has recently undergone a valuation adjustment, reflecting its current financial metrics and market position. The bank's price-to-earnings (PE) ratio stands at 28.45, while its price-to-book value is recorded at 3.52. The PEG ratio is noted at 1.55, indicating a balanced growth perspective relative to its earnings. The bank offers a modest dividend yield of 0.12%, with a return on equity (ROE) of 12.36% and a return on assets (ROA) of 1.33%. Additionally, the net non-performing assets (NPA) to book value ratio is 4.64.
In comparison to its peers, AU Small Finance Bank's valuation metrics position it within a competitive landscape. HDFC Bank and ICICI Bank also exhibit high valuation scores, with PE ratios of 22.58 and 21.5, respectively. Meanwhile, Axis Bank shows a lower PE ratio of 13.8, highlighting a diverse range of valuations across the sector. Over the past year, AU Small Finance Bank has delivered a return of 24.82%, significantly outperforming the Sensex, which returned 2.15% in the same period. This performance underscores the bank's relative strength in the current market environment.