Why is AU Small Finance falling/rising?

Sep 22 2025 10:52 PM IST
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As of 22-Sep, AU Small Finance Bank Ltd's stock price is at 706.15, down 1.62% and underperforming its sector. Despite strong fundamentals, recent declines are attributed to high valuation and negative market sentiment.
As of 22-Sep, AU Small Finance Bank Ltd's stock price is currently at 706.15, reflecting a decline of 11.65 points or 1.62%. The stock has underperformed its sector by 1.42% today and has experienced a consecutive fall over the last two days, resulting in a total decline of 1.9% during this period. Despite having a strong long-term fundamental strength, with a high Return on Assets (ROA) of 1.91% and a robust growth in Net Interest Income and net profit, the stock's recent performance has been negatively impacted by its expensive valuation, trading at a Price to Book Value of 3.1. Additionally, while the stock has shown positive results over the last five quarters, the recent underperformance against the benchmark and the overall market sentiment may have contributed to the decline.

In the broader market context, the stock has underperformed compared to the Sensex, which has gained 0.46% over the past week, while AU Small Finance Bank's stock has decreased by 1.06%. This trend continues over the past month, where the stock has fallen by 4.88%, contrasting with the Sensex's increase of 1.05%. The rising investor participation, indicated by a significant increase in delivery volume, suggests some underlying interest in the stock, but the overall market conditions and the stock's recent performance relative to its peers may be influencing its current downward trajectory.
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