One of the top small finance banks in India is AU Small Finance Bank, which provides a variety of financial services to people and companies all around the nation. The bank was established in 1996 as Au Financiers (India) Limited and changed its status to a small finance bank in 2017 after being granted a licence by the Reserve Bank of India (RBI). With more than 700 branches and more than 14,000 staff, AU Small Finance Bank has a significant presence in 13 states and 1 union territory in India today. The bank is dedicated to bringing financial inclusion and economic empowerment to all facets of society and has received numerous honors and plaudits for its innovative financial products and services.
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AU SMALL FINANCE BANK LTD IN RECENT NEWS
- In the first quarter, AU Small Finance Bank reported a significant increase in net profit, surging by 44% year on year to reach Rs 387 Crore.
- Despite strong year-on-year growth, AU Small Finance Bank’s performance did not trigger a notable market reaction.
- AU Small Finance Bank secures RBI approval for conducting foreign exchange transactions.
- Sanjay Agarwal reappointed as the Managing Director and CEO of AU Small Finance Bank.
- Uttam Tibrewal reappointed as a whole-time director at AU Small Finance Bank.
AU SMALL FINANCE SHARE PRICE TARGET 2023
|ASF SHARE PRICE TARGET 2023||Maximum Price||Minimum Price|
Looking at the predicted share price of AU Small Finance Bank for 2023, it appears that the company is poised for a bullish uptrend with significant growth percentage. According to the table, the share price is expected to rise from a minimum of ₹770.00 in July to a maximum of ₹850.45 in December, indicating a growth of over 130% in just one year.
While there may be some fluctuations throughout the year, the overall trend appears to be upward, with the share price increasing each month from June to November. This suggests that investors can expect strong returns on their investment in AU Small Finance Bank in 2023. Overall, the outlook for AU Small Finance Bank’s share price in 2023 appears to be very positive, with a strong bullish uptrend expected and significant growth potential.
AU SMALL FINANCE BANK SHARE PRICE TARGET 2024
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The share price of AU Small Finance Bank is predicted to experience potential for significant growth in 2024, with a range of ₹592.79 to ₹1,143.92. According to the table, the share price is expected to reach a maximum of ₹1,143.92 in December 2024, while the minimum is expected to be ₹592.79 in May 2024. This indicates that the share price of AU Small Finance Bank is likely to continue on an upward trend from 2023, as it maintains an overall bullish stance in the stock market.
Despite minor fluctuations throughout the year, the share price is expected to trend upwards from June to November, with a predicted growth percentage of over 30%. This suggests that AU Small Finance Bank’s financial performance is projected to remain strong in the upcoming year, making it a promising investment option for those seeking to diversify their portfolio.
AU SMALL FINANCE BANK SHARE PRICE TARGET 2025
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The projected share price target for AU Small Finance Bank in 2025 indicates a positive outlook, with a range of ₹805.21 to ₹1,387.60. According to the table, the share price is expected to reach a maximum of ₹1,387.60 in December 2025, while the minimum is expected to be ₹805.21 in May 2025. This indicates a projected growth of over 70% from the minimum predicted share price target to the maximum predicted share price target in 2025.
While the stock market can be unpredictable, the upward trend in the share price of AU Small Finance Bank is expected to continue in 2025, with an overall bullish stance in the stock market. The projected growth percentage for the year ranges from 30% to 50%, indicating significant potential for continued growth in the coming year. The share price is predicted to rise from August to November, with the largest increase occurring in November, with a projected growth percentage of over 25%.
AU SMALL FINANCE BANK SHARE PRICE TARGET 2026 TO 2030
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In 2026, the share price is expected to fluctuate between ₹971.32 and ₹679.92, indicating a potential drop from the current price range. However, in 2028, the share price is projected to soar to ₹1,486.12 at its maximum, which is a considerable growth percentage from the previous year’s projections.
The following year, in 2029, the share price is expected to climb even higher, reaching a maximum target of ₹3,052.72, indicating an uptrend in the market. The trend is likely to continue in 2030, with the maximum price target projected to be ₹3,399.62. Overall, investors can expect some fluctuations in the share prices of AU SMALL FINANCE BANK in the coming years, but the long-term trend seems to be upward.
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FINANCIAL STRENGTH OF AU SMALL FINANCE BANK SHARE PRICE TARGET(2019-2033)
|Year||Mar 2019||Mar 2020||Mar 2021||Mar 2022||Mar 2023|
|Revenue (Rs crore)||2,949||4,286||4,950||5,922||8,205|
|Interest (Rs crore)||1,607||2,377||2,585||2,688||3,780|
|Expenses +(Rs crore)||1,163||1,612||2,224||2,634||3,410|
|Financing Profit (Rs crore)||180||296||142||601||1,016|
|Financing Margin %||6%||7%||3%||10%||12%|
|Other Income + (Rs crore)||462||706||1,421||994||1,034|
|Depreciation (Rs crore)||62||89||104||140||185|
|Profit before tax (Rs crore)||580||914||1,458||1,454||1,865|
|Net Profit +||382||675||1,171||1,130||1,428|
|EPS in Rs||6.53||11.09||18.75||17.94||21.42|
|Dividend Payout %||6%||0%||0%||3%||5%|
1. Steady Revenue Growth: The company’s revenue has witnessed a consistent growth trend over the last five years, increasing from Rs 2,949 crore in March 2019 to Rs 8,205 crore in March 2023 (TTM). This demonstrates the company’s ability to attract more business and expand its operations.
2. Progressive Profitability: The company’s net profit has shown a positive trajectory, except for a slight dip in March 2022. However, it rebounded to Rs 1,428 crore in March 2023 (TTM), indicating the management’s efforts to maintain profitability in the long run.
3. Robust Interest Income: The interest income has grown significantly over the years, reaching Rs 3,780 crore in March 2023 (TTM). This indicates the company’s proficiency in managing its interest-earning assets effectively.
4. Controlled Expenses: While expenses have increased over time, the company has managed to keep them under control, with expenses amounting to Rs 3,410 crore in March 2023 (TTM). This disciplined approach indicates prudent cost management.
5. Positive Financing Margin: The financing margin has been relatively stable, ranging from 3% to 12% during the five-year period. This suggests that the company has been able to generate decent returns on its financing activities.
6. Diversified Income Streams: The company has diversified its income sources, as evident from the substantial growth in other income, which reached Rs 1,034 crore in March 2023 (TTM). This diversification reduces dependency on a single revenue stream.
7. Increasing Earnings per Share (EPS): The EPS has shown consistent growth over the years, reaching Rs 21.42 in March 2023. This indicates an improvement in shareholders’ earnings and reflects positively on the company’s performance.
8. Moderate Dividend Payout: The company has maintained a moderate dividend payout, ranging from 0% to 6% over the last five years. This approach allows the company to retain earnings for future growth while also rewarding shareholders.
In conclusion, the company has demonstrated resilience and growth potential over the years, achieving substantial revenue growth, improving profitability, and maintaining a healthy balance between earnings and expenses. However, the company should focus on sustaining its upward trajectory in revenue and profitability while exploring opportunities to optimize expenses further.
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AU SMALL FINANCE BANK SHARE PRICE TARGET BY EXPERTS:
1. Sharekhan recommends a “Buy” call on AU Small Finance Bank Ltd, with a target price of Rs. 800 per share.(24/3/23)
2. Motilal Oswal advises investors to “Buy” AU Small Finance Bank Ltd shares, with a target price of Rs. 760.(13/4/23)
3. Nomura downgrades AU Small Finance Bank Ltd from “Neutral” to “Reduce” and revises its price target from INR 630 to INR 650.(24/6/23)
The maximum share price target of AU SMALL FINANCE BANK in 2027 is Rs. 825.62
The maximum share price target of AU SMALL FINANCE BANK in 2029 is Rs. 3052.72
The maximum share price target of AU SMALL FINANCE BANK in 2030 is Rs. 3399.62
POINTS TO NOTICE WHILE INVESTING INAU SMALL FINANCE BANK SHARE PRICE:
– The company is anticipated to report a favorable quarter.
– Over the past five years, the company has achieved an impressive compound annual growth rate (CAGR) of 37.3% in profits.
– The median sales growth of the company over the last ten years stands at 38.1%.
– The stock is currently trading at a price of 4.66 times its book value.
– The company has a low interest coverage ratio.
– The promoter holding has experienced a decline of -3.48% over the last three years.
CONCLUSION: AU SMALL FINANCE BANK
According to AU Small Finance Bank’s financial statements over the previous five years, the company has consistently increased its income, PAT, and revenue. Also, the business has been effective in lowering its provisions and contingencies, which has benefited its profitability. The bank has maintained a reasonably low level of non-performing assets, which suggests high asset quality, notwithstanding fluctuations in the Gross NPA and Net NPA percentages over the years. The company’s basic earnings per share (EPS) has also increased steadily, showing its outstanding financial success.
The positive outlook from Sharekhan and Motilal Oswal, along with the anticipation of a good quarter, signal potential growth prospects for the bank. Additionally, the company’s impressive profit growth and median sales growth over the years indicate a robust financial performance.
AU SMALL FINANCE BANK appears to be a solid investment choice in light of these characteristics. However, in order to fully assess the potential risks and rewards, investors should perform additional study and analysis.while the bank’s positive performance and expert recommendations are encouraging, potential investors should conduct thorough due diligence to assess both the growth opportunities and associated risks before making any investment decisions.
Suhani Bhat, a student of Hansraj college, is a finance writer who takes deep interest in stock market, mutual funds, and other financial news. She writes for multiple finance blogs, including Financegradeup.com. Other than English, she also speaks Hindi.