Forecast

Buy or Sell: AU Small Finance Bank Share Price Target 2024, 2025, 2030 to 2050

HP Jinjholiya

24 August 2024

AU Small Finance Bank is listed on the Indian Stock Exchange NSE under the symbol “AUBANK” and on the BSE with the code “540611“. let’s analyze the future of AU Small Finance Bank Share Price Target 2024 to 2050 as well, including whether it’s a good time to buy or sell them today. Additionally, we will also take into Analyst Recommendations for AU Small Finance Bank Share Price Target.

About AU Small Finance Bank

AU Small Finance Bank Share Price Live

Broker research consists of reports from brokerage firms or investment banks, offering insights and recommendations on AU Small Finance Bank, including whether to buy, sell, or hold, along with AU Small Finance Bank Share Price Target and forecasts.

AU Small Finance Bank Forecast

The financial services firm ICICI Securities Limited, a SEBI Registered Research Analyst published the latest research report on AU Small Finance Bank Share Price Target, providing a recommendation of a ‘HOLD’ rating.

Adjusted RoA and Credit Cost: AU SFB reported an adjusted Return on Assets (RoA) of 1.6% for Q4FY24, driven by a reduction in credit costs to approximately 70 basis points, compared to over 90 basis points in the previous quarter.

Fee Income and High-Yield Portfolio: There was a significant increase in core fee income by 24% quarter-over-quarter. The addition of a high-yielding microfinance institution (MFI) portfolio is expected to boost asset yields for the merged entity by about 100 basis points to 14.2%.

Cost of Funds and Provisioning: The cost of funds is likely to rise by 40–45 basis points. The management plans to maintain a provision cover of 2.5%-3% on its MFI book, which constitutes 8% of the portfolio, aiming to sustain RoA at 1.6% for FY25E.

Merger Synergies and Profitability: Gradual merger synergies and new product lines such as credit cards and QR codes are anticipated to help increase RoA to 1.8% by FY27, and to a steady state of 2%.

Q4FY24 Financials: During Q4FY24, there was a sharp 10% growth in the wheel portfolio quarter-over-quarter and a 9% growth in overall advances. Net Interest Margin (NIM) contracted sharply leading to subdued Net Interest Income (NII) growth, yet profitability was supported by strong core fee income growth.

Merger Costs and Future Projections: AU upfronted a significant portion of the anticipated INR 3 billion merger costs in their FY24 profit and loss statements. The merger completion is expected to facilitate steady earnings from FY25 onwards.

Valuation and Hold Rating: The stock retains a HOLD rating with a revised target price of INR 630, adjusted from INR 770, valued at 2.5 times the September 2025 estimated book value per share.

 Financial of AU Small Finance Bank

We will conduct a detailed analysis of the company’s recent share performance and offer you thoroughly researched AU Small Finance Bank Share Price Target 2024, 2025, 2030 to 2050. Our projections are based on extensive research and forecasted data from past performance.

Peer Comparison of AU Small Finance Bank

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I would like to remind you that I am not authorized by SEBI to provide any financial advice or recommendations. As you know, predicting share prices is not an exact science, which is why I am conducting in-depth research and utilizing various tools to forecast share prices.

Disclaimer– These Share Price Targets for “AU Small Finance Bank Share Price Target” are only provided for informational purposes. It does not constitute a recommendation to buy, sell, or hold AU Small Finance Bank stock. Investors should conduct their research and analysis and consult with financial experts before making any investment decisions— Sharedhan.com