Equitas SFB should steadily accelerate growth in the coming quarters and is looking at achieving 2 percent RoA by FY23. While management change remains an overhang, investors with higher risk appetite could consider Equitas that is now available at a bargain valuation
Equitas has seen a sharp surge in operating expenses thanks to the higher spend on digital. (Representative image)
PRO Only Highlights
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
Stock price of Equitas Small Finance Bank (CMP: Rs 40.5, Market Cap: Rs 5071 crore) has fallen significantly post its founder and chief executive officer P.N. Vasudevan, informed the bank’s board in the middle of May about his decision to step down to pursue philanthropic activities. Coming on the heels of the regulator approving the amalgamation of Equitas Holding with the Small Finance Bank (SFB) and Equitas SFB showing signs of coming out of the covid-led asset quality challenges,…
