Growth is unlikely to slacken at AU as long as the macro remains positive and the valuation looks relatively attractive
The small finance bank is well capitalised after the recent capital mop-up.
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 Lacklustre stock market performance in the past Stable all round performance in Q3 FY23 Strong loan growth aided by retail as well as commercial banking Largely secured book lends comfort Deposits lag credit growth but term deposits pick up Margin stable, moderation likely Asset quality pristine, credit cost to remain benign Investing heavily now, operating leverage benefit to kick in Strong growth trajectory, valuation at a discount to IPO valuation of 2017 AU Small Finance Bank (CMP: Rs 621, Market Cap: Rs 41,407 crore) had a difficult time…
