Earning trajectory of AU SFB looks good as the bank has adequate capital, right products and the technology backbone to take on competition
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
Highlights A weak Q1 marred by trading losses and softer margin Asset quality stable, benign credit cost expected Loan growth strong, improving outlook bolsters the case for a surge ahead Building excellent retail-centric deposits, cost of funds stable Margin should stay protected despite a large fixed rate book, riding on better liability Investing heavily in technology and network to capture market share A long-term winner, should find a place in core portfolio AU Small Finance Bank (CMP: Rs 660, Market Cap: Rs 43,924 crore) has all the…
