AU Small Finance Bank Ltd (AUBANK) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

AU Small Finance

Ujjivan Small

Capital Small

Suryoday Small

Equitas Sma. Fin

Jana Small Finan

ESAF Small Fin

Utkarsh Small F.

Why is AU Small Finance Bank Ltd ?

Strong Long Term Fundamental Strength with an average Return on Assets (ROA) of 1.62%

Healthy long term growth as Net Interest Income (ex other income) has grown by an annual rate of 30.43% and Net profit at 21.08%
The Bank has a high Capital Adequacy Ratio of 21.50% signifying high buffers against its risk based assets

Flat results in Sep 25

PBT LESS OI(Q) At Rs 16.31 cr has Fallen at -86.50%
NON-OPERATING INCOME(Q) is 97.76 % of Profit Before Tax (PBT)

With ROA of 1.3, it has a Very Expensive valuation with a 4 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 60.63%, its profits have risen by 15.5% ; the PEG ratio of the company is 2.2

High Institutional Holdings at 66.4%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Market Beating performance in long term as well as near term

Along with generating 60.63% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to AU Small Finance should be less than 10%
Overall Portfolio exposure to Other Bank should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Bank)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is AU Small Finance for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

AU Small Finance

60.63%

1.93

31.38%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Net Interest Income Growth (5y)

30.43%

Net Profit Growth (5y)

21.08%

Advance to Deposit

87.80%

Capital Adequacy Ratio (Tier 1)

21.50%

Gross NPA (latest)

2.41%

Gross NPA (avg)

2.27%

Coverage Ratio (avg)

63.16%

Cost to Income (avg)

57.86%

Net Interest Margin (avg)

6.68%

Operating Profit to Assets (avg)

8.71%

ROA (avg)

1.62%

Net Debt to Equity (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Price to Book Value

3.95

PEG Ratio

2.20

Dividend Yield

0.10%

ROE (Latest)

11.98%

ROA (Latest)

1.31%

Net NPA to Book Value

5.60

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

INTEREST EARNED(Q)

Highest at Rs 4,511.28 cr

NII(Q)

Highest at Rs 2,144.41 cr

CREDIT DEPOSIT RATIO(HY)

Highest at 87.32%

-6What is not working for the Company

PBT LESS OI(Q)

At Rs 16.31 cr has Fallen at -86.50%

NON-OPERATING INCOME(Q)

is 97.76 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for AU Small Finance

Interest Earned - Quarterly

Highest at Rs 4,511.28 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Interest Earned (Rs Cr)

Net Interest Income (Quarterly)

Highest at Rs 2,144.41 cr

in the last five quarters

MOJO Watch

The bank's income from core business is increasing

Net Interest Income (Rs Cr)

Credit Deposit Ratio - Half Yearly

Highest at 87.32%

in the last four periods

MOJO Watch

Bank has been creating proportionately higher loans against its deposits, thereby creating higher revenue generating assets

Credit Deposit Ratio (%)

Here's what is not working for AU Small Finance

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 16.31 cr has Fallen at -86.50%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Non Operating Income - Quarterly

is 97.76 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT