Equitas Small Finance Bank Hits 52-Week Low Amid Broader Market Decline

Equitas Small Finance Bank has experienced significant activity today, reaching a new 52-week low of Rs. 54.89. This decline comes amid a broader market trend, with the Sensex opening lower and currently trading down by 0.2%. Over the past year, Equitas has underperformed, with a notable decline of 44.47%, contrasting sharply with the Sensex's drop of just 1.27%.
The bank's recent financial performance has raised concerns, as it has reported negative results for the last three consecutive quarters. Key metrics reveal a substantial fall in profit before tax, down 102.5% to Rs. -148.67 crore, and a 40.8% decrease in profit after tax to Rs. 66.30 crore. Additionally, the gross non-performing assets (NPA) ratio has reached a concerning 2.97%.

Despite these challenges, Equitas maintains a strong capital adequacy ratio of 20.81%, indicating a solid buffer against risk. The bank's return on assets stands at 0.6, and it trades at a discount compared to its peers. However, the technical indicators suggest a bearish trend, with the stock trading below its moving averages across various time frames.