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

Score

Part of MojoOne Strategy

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Ujjivan Small

Equitas Sma. Fin

AU Small Finance

Jana Small Finan

Suryoday Small

Capital Small

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 1.60%

Healthy long term growth as Net Interest Income (ex other income) has grown by an annual rate of 25.77%
The Bank has a high Capital Adequacy Ratio of 21.50% signifying high buffers against its risk based assets

Positive results in Jun 26

NII(Q) Highest at Rs 2,695.50 cr
INTEREST EARNED(Q) Highest at Rs 5,302.74 cr
PBT LESS OI(Q) Highest at Rs 374.77 cr.

High Institutional Holdings at 68.79%

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

Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks

Market Beating performance in long term as well as near term

Along with generating 45.52% 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 buy?

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

45.52%

1.54

29.61%

Sensex

-2.63%

-0.19

13.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Net Interest Income Growth (5y)

25.77%

Net Profit Growth (5y)

19.48%

Advance to Deposit

87.63%

Capital Adequacy Ratio (Tier 1)

21.50%

Gross NPA (latest)

2.10%

Gross NPA (avg)

2.01%

Coverage Ratio (avg)

66.92%

Cost to Income (avg)

60.09%

Net Interest Margin (avg)

6.24%

Operating Profit to Assets (avg)

7.89%

ROA (avg)

1.60%

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

4.11

PEG Ratio

0.95

Dividend Yield

0.09%

ROE (Latest)

14.48%

ROA (Latest)

1.49%

Net NPA to Book Value

5.37

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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

Mildly 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

21What is working for the Company

NII(Q)

Highest at Rs 2,695.50 cr

INTEREST EARNED(Q)

Highest at Rs 5,302.74 cr

PBT LESS OI(Q)

Highest at Rs 374.77 cr.

PBDIT(Q)

Highest at Rs 746.25 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 14.07%

PAT(Q)

At Rs 795.95 cr has Grown at 37.0%

-2What is not working for the Company

NON-OPERATING INCOME(Q)

is 64.78 % of Profit Before Tax (PBT

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Here's what is working for AU Small Finance

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 374.77 cr has Grown at 1281.87%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Net Interest Income (Quarterly)

Highest at Rs 2,695.50 cr and Grown

each quarter in the last five quarters

MOJO Watch

The bank's income from core business is increasing

Net Interest Income (Rs Cr)

Interest Earned - Quarterly

Highest at Rs 5,302.74 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Interest Earned (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 374.77 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Interest Earned - Quarterly

At Rs 5,302.74 cr has Grown at 21.11%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Interest Earned (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 746.25 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 14.07%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit After Tax (PAT) - Quarterly

At Rs 795.95 cr has Grown at 37.0%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Here's what is not working for AU Small Finance

Non Operating Income - Quarterly

is 64.78 % 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