Forecast

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

Harry

2 May 2024

0

Equitas Small Finance Bank is listed on the Indian Stock Exchange NSE under the symbol “EQUITASBNK” and on the BSE with the code “543243“. let’s analyze the future of Equitas 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 Equitas Small Finance Bank Share Price Target.

About Equitas Small Finance Bank

Equitas Small Finance Bank Share Price Live

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

Equitas Small Finance Bank Forecast

The financial services firm Motilal Oswal, a SEBI Registered Research Analyst published the latest research report on Equitas Small Finance Bank Share Price Target, providing a recommendation of a ‘Buy’ rating.

Earnings Report: Equitas SFB reported a profit after tax (PAT) of INR 2.08 billion in Q4 FY24, marking a 9.3% year-over-year increase. Adjusting for one-off items, PAT was higher at INR 2.33 billion.

Asset Under Management (AUM): AUM grew by 21% year-over-year to INR 337 billion in Q4 FY24, driven by healthy demand across most segments, excluding NBFC and new commercial vehicles. Management anticipates a 25% YoY credit growth in FY25.

Deposit Growth: Deposits surged by 42% YoY to approximately INR 361 billion, with term deposits growing by 13% QoQ. The CASA ratio slightly declined by 74 basis points QoQ to 32%.

Cost of Funds and Net Interest Margins (NIMs): Cost of funds increased by 8 basis points QoQ to 7.44%, and NIMs decreased by 20 basis points QoQ to 8.17%.

Asset Quality: Slippages were high due to a one-time co-borrower non-performing asset (NPA) classification, leading to an increase in the gross NPA (GNPA) and net NPA (NNPA) ratios to 2.61% and 1.17%, respectively. The provision coverage ratio (PCR) remained stable at 56%.

Income and Expenses: Net interest income (NII) grew by 11% YoY to INR 7.85 billion. Operating expenses increased by 17% YoY to INR 6.5 billion, resulting in a cost-to-income (C/I) ratio of 63.5%.

Future Outlook: The bank aims to maintain a return on assets (RoA) at 2% and foresees interest rates peaking with a potential increase in the cost of funds by 10-12 basis points in the first half of FY25. NIMs are expected to stabilize.

Valuation: The bank maintains a “Buy” recommendation with a target price (TP) of INR 125, based on 1.9 times the estimated book value for FY26. The projected RoA and return on equity (RoE) for FY26 are 2.0% and 17.4%, respectively.

 Financial of Equitas Small Finance Bank

We will conduct a detailed analysis of the company’s recent share performance and offer you thoroughly researched Equitas Small Finance Bank Share Price Target 2024, 2025, 2027 to 2050. Our projections are based on extensive research and forecasted data from past performance.

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