Buy Au Small Finance Bank, target price Rs 800: Sharekhan by BNP Paribas

Sharekhan by BNP Paribas has buy call on Au Small Finance Bank with a target price of Rs 800. The current market price of Au Small Finance Bank is Rs 557.15.

Au Small Finance Bank, incorporated in the year 1996, is a banking company (having a market cap of Rs 37288.02 Crore).

Au Small Finance Bank key Products/Revenue Segments include Interest & Discount on Advances & Bills, Income From Investment, Interest and Interest On Balances with RBI and Other Inter-Bank Funds for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-12-2022, the company has reported a Standalone Total Income of Rs 2412.96 Crore, up 7.74 % from last quarter Total Income of Rs 2239.65 Crore and up 36.16 % from last year same quarter Total Income of Rs 1772.09 Crore. The bank has reported net profit after tax of Rs 392.83 Crore in latest quarter.

Investment Rationale
AU SFB has built a solid franchise and has a clear road map for its sustainable growth path with the right strategy in place on both asset as well as liability sides along with strong execution capabilities.

Promoter/FII Holdings
Promoters held 25.55 per cent stake in the company as of 31-Dec-2022, while FIIs owned 39.61 per cent, DIIs 20.64 per cent.