One of the most talked-about stocks recently is Equitas Small Finance Bank, which was launched on the stock exchanges in November 2020. The bank serves the financial requirements of underserved and unbanked segments of society by operating in the small finance banking sector. Since the bank was listed, it has been operating profitably, and its share price has been steadily increasing.
Investors are keeping a close eye on the bank’s performance and making predictions about its potential for future growth. In this article, we will examine the growth trajectory of Equitas Small Finance Bank in more detail and forecast its share price range from 2023 to 2030. To anticipate the target price with accuracy, we will consider the bank’s financial performance, growth factors, and market trends.
This article aims to offer valuable insights into Equitas Small Finance Bank’s growth prospects by examining crucial factors like its geographical presence, loan portfolio structure, asset quality, and recent developments. It is intended to be a valuable resource for investors and financial enthusiasts who are interested in assessing whether the bank can achieve the desired milestone of a 200 INR share price. In a financial environment marked by evolution and expansion, Equitas Small Finance Bank’s journey presents an intriguing narrative for the future.
CLICK HERE FOR MORE:
IOB SHARE PRICE TARGET 2023 TO 2030: CAN IOB REACH 100 INR?
Contents
MORE ABOUT EQUITAS SMALL FINANCE BANK:
Equitas Small Finance Bank, previously known as Equitas Microfinance Ltd, is a publicly traded small finance bank that originated in Chennai, India, in 2016. It operates as a subsidiary of Equitas Holdings Ltd. The bank obtained its license from the Reserve Bank of India (RBI) in June 2016 and initiated its banking operations in September 2016, achieving scheduled bank status in February 2017.
Significantly, the bank conducted an initial public offering (IPO) in October 2020 and subsequently concluded a reverse merger with its parent company in March 2023. Moreover, Equitas Small Finance Bank is actively involved in philanthropic endeavors, allocating a portion of its earnings to support social initiatives, including educational programs and efforts aimed at enhancing the well-being of underserved communities in Chennai.
HOW TO BUY EQUITAS SMALL FINANCE BANK SHARES?
In India, you have multiple options when it comes to purchasing Equitas Small Finance Bank shares through various brokerage firms, including:
- Zerodha
- PayTM Money
- HDFC Securities
- Sharekhan
- Kotak Securities
- Axis Direct
- Upstox
- 5Paisa
- Motilal Oswal
- Angel Broking
EQUITAS SMALL FINANCE BANK IN RECENT NEWS
- Equitas Small Finance Bank’s Q1 results show robust business performance with a remarkable 97% year-on-year growth in PAT (Profit After Tax).
- India Ratings has maintained an A1+ rating for Equitas Small Finance Bank’s Certificate of Deposits.
- Equitas Small Finance Bank is set to enter the credit card and personal loans segments.
- Equitas Small Finance Bank’s shares reached an all-time high following the bank’s announcement of a 36.5% growth in loans during Q1.
- Arun Ramanathan, who holds the position of Part-Time Chairman and Non-Executive Independent Director at the bank, has expressed the bank’s intention to strengthen its consumer finance portfolio in the coming years through the introduction of credit cards and personal loans. This strategic initiative is expected to contribute to greater stability by broadening the bank’s loan portfolio.
ESF BANK SHARE PRICE TARGET 2023
| ESF BANK SHARE PRICE TARGET | Maximum Price | Minimum Price |
| September 2023 | ₹86.56 | ₹66.58 |
| October 2023 | ₹82.44 | ₹63.41 |
| November 2023 | ₹90.68 | ₹69.75 |
| December 2023 | ₹101.56 | ₹78.13 |
Equitas Small Finance Bank’s share price prediction for 2023 suggests a bullish uptrend with impressive growth percentages. Despite some short-term fluctuations, the overall trend seems to be positive, indicating a potential for strong returns for investors.
The maximum price of Equitas Small Finance Bank’s stock is expected to reach ₹101.56 in December 2023, with a growth percentage of 30.4% from the current stock price. Similarly, the minimum price is estimated to be ₹66.58 in September 2023, with a decline of 41.8% from the current stock price. However, investors need not worry about the temporary dips, as the stock is expected to make a strong recovery in the subsequent months.
EQUITAS SMALL FINANCE BANK SHARE PRICE TARGET 2024
| ESF BANK SHARE PRICE TARGET 2024 | Maximum Price | Minimum Price |
| January 2024 | ₹106.91 | ₹98.10 |
| February 2024 | ₹120.12 | ₹100.10 |
| March 2024 | ₹126.44 | ₹102.80 |
| April 2024 | ₹114.95 | ₹88.42 |
| May 2024 | ₹95.79 | ₹73.69 |
| June 2024 | ₹114.95 | ₹88.42 |
| July 2024 | ₹97.71 | ₹75.74 |
| August 2024 | ₹107.48 | ₹85.30 |
| September 2024 | ₹112.85 | ₹86.81 |
| October 2024 | ₹132.77 | ₹102.13 |
| November 2024 | ₹139.40 | ₹107.23 |
| December 2024 | ₹142.19 | ₹109.38 |
The share price target for Equitas Small Finance Bank in 2024 appears to be promising, with a positive growth trajectory and a potential for high returns for investors. According to the table, the bank’s stock is expected to reach a maximum price of ₹142.19 and a minimum price of ₹73.69 in December 2024 and May 2024, respectively.
The bank’s performance is expected to improve gradually from January to October 2024, with the growth percentage ranging from 2.2% to 25.3%. The maximum growth is expected to occur in October 2024, with an estimated growth percentage of 20.4%. This indicates that the bank’s strategic initiatives and growth drivers are likely to yield favorable outcomes, paving the way for a positive outlook in the long run.
Although the stock is expected to experience temporary dips in April and May 2024, the bank’s share price is expected to recover soon afterward. By the end of December 2024, the bank’s stock is predicted to be at a higher level than the current market price, which is good news for investors who are looking for potential growth opportunities in the small finance banking segment.
CLICK HERE:
PNB SHARE PRICE TARGET 2023 TO 2030: CAN PNB REACH 200 INR?
EQUITAS SMALL FINANCE BANK SHARE PRICE TARGET 2025
| ESF BANK SHARE PRICE TARGET 2025 | Maximum Price | Minimum Price |
| January 2025 | ₹145.04 | ₹111.57 |
| February 2025 | ₹152.67 | ₹117.44 |
| March 2025 | ₹160.30 | ₹123.31 |
| April 2025 | ₹143.13 | ₹110.10 |
| May 2025 | ₹130.12 | ₹100.09 |
| June 2025 | ₹143.13 | ₹110.10 |
| July 2025 | ₹136.31 | ₹104.86 |
| August 2025 | ₹141.99 | ₹109.22 |
| September 2025 | ₹149.09 | ₹114.69 |
| October 2025 | ₹158.04 | ₹121.57 |
| November 2025 | ₹169.10 | ₹130.08 |
| December 2025 | ₹172.48 | ₹132.68 |
Looking at the predicted share price for Equitas Small Finance Bank in 2025, it appears to continue its bullish trend. The share price is expected to reach a maximum of ₹172.48 and a minimum of ₹100.09 in May 2025. The share price is expected to keep rising throughout the year, with a peak growth of 18.7% in November 2025. This suggests that investors can expect to see continued growth in the bank’s share price in the coming years.
EQUITAS SMALL FINANCE BANK SHARE PRICE TARGET 2026 TO 2030
| ESF BANK SHARE PRICE TARGET BY | Maximum Price | Minimum Price |
| 2026 | ₹120.74 | ₹84.52 |
| 2027 | ₹102.63 | ₹71.84 |
| 2028 | ₹184.73 | ₹129.31 |
| 2029 | ₹379.46 | ₹265.62 |
| 2030 | ₹422.58 | ₹295.81 |
Looking at the predicted share price for Equitas Small Finance Bank in the upcoming years, it appears that the bank’s share price will continue its upward trend. In 2026, the share price is expected to reach a maximum of ₹120.74 and a minimum of ₹84.52. The share price is expected to continue to grow, with a maximum of ₹422.58 and a minimum of ₹71.84 in 2030.
This represents a significant growth percentage, with the share price expected to grow by 354.3% between 2026 and 2030. This is a clear indication of a strong uptrend, making Equitas Small Finance Bank an attractive investment opportunity for investors who are looking for long-term capital appreciation.
However, it is important to keep in mind that stock prices are subject to market volatility and can be influenced by a variety of factors, so it is always wise to conduct thorough research before making investment decisions.
CLICK HERE FOR MORE:
BANK OF MAHARASHTRA LTD SHARE PRICE TARGET 2023 TO 2030: CAN BOM REACH 100 INR?
FINANCIAL STRENGTH OF EQUITAS SMALL FINANCE BANK
| Metric | March 2019 | March 2020 | March 2021 | March 2022 | March 2023 |
|---|---|---|---|---|---|
| Revenue | 2,112 | 2,645 | 3,194 | 3,460 | 4,162 |
| Interest | 964 | 1,150 | 1,396 | 1,421 | 1,617 |
| Expenses | 1,015 | 1,304 | 1,628 | 2,123 | 2,361 |
| Financing Profit | 133 | 191 | 170 | -84 | 184 |
| Financing Margin % | 6% | 7% | 5% | -2% | 4% |
| Other Income | 283 | 282 | 418 | 538 | 670 |
| Depreciation | 92 | 96 | 76 | 75 | 85 |
| Profit before Tax | 324 | 377 | 511 | 378 | 769 |
| Tax % | 35% | 35% | 25% | 26% | 25% |
| Net Profit | 211 | 244 | 384 | 281 | 574 |
| EPS (in Rs) | 2.09 | 2.31 | 3.37 | 2.24 | 5.16 |
| Dividend Payout % | 0% | 0% | 0% | 0% | 19% |
Examining the financial data over the past five years, several noteworthy trends emerge. First, there has been a consistent growth in revenue, with figures climbing from Rs 2,112 crore in March 2019 to Rs 4,162 crore in March 2023. Similarly, expenses have increased over this period, reaching Rs 2,361 crore in March 2023. However, financing profit has fluctuated, showing a notable dip to -Rs 84 crore in March 2022 before rebounding to Rs 184 crore in March 2023.
Interestingly, the company’s financing margin saw fluctuations, dipping to -2% in March 2022 but recovering to 4% in March 2023. Notably, the dividend payout percentage increased to 19% in March 2023, indicating a shift in the company’s dividend policy. Overall, these financial metrics reflect the company’s dynamic financial performance over the last five years, with periods of growth, challenges, and strategic adjustments.
CLICK HERE TO KNOW MORE:
Pradhan Mantri Vaya Vandana Yojana: Everything you need to know
POINTS TO KEEP IN MIND WHILE INVESTING IN EQUITAS SMALL FINANCE BANK SHARES:
- The company has achieved impressive profit growth, with a compound annual growth rate (CAGR) of 78.3% over the past five years.
- However, the company exhibits a low interest coverage ratio, indicating potential challenges in servicing its interest obligations.
- Over the last three years, the company has shown a comparatively low return on equity (ROE) of 10.7%.
- It’s worth noting that the company’s earnings include an additional income of Rs. 708 crore.
EQUITAS SMALL FINANCE BANK SHARE PRICE TARGET BY EXPERTS:
- Motilal Oswal suggests buying Equitas Small Finance shares with a target price of Rs 110.(31 July 2023).
- Motilal Oswal expresses a positive outlook on Equitas Small Finance Bank, offering a buy rating for bank at Rs 105.(June 23, 2023)
FAQ’s
The maximum share price target of Equitas Bank in 2027 is Rs. 102.63
The maximum share price target of Equitas Bank in 2029 is Rs. 379.46
The maximum share price target of Equitas Bank in 2030 is Rs. 422.58
CONCLUSION: EQUITAS SMALL FINANCE BANK
According to Equitas Small Finance Bank’s financial filings over the last five years, the company has experienced substantial growth in terms of total income, revenue, and PAT. Throughout the past five years, the company’s total revenue has increased steadily with a CAGR of 28.16%. The company’s PAT, however, has been erratic, with a significant drop in FY 2022. The bank’s net profit margin and net interest margin have also held stable over time.
Given these elements and the company’s robust income and revenue development, Equitas Small Finance Bank shares may prove to be a wise long-term investment choice. Investors should, however, also take into account the company’s success in terms of increasing profits and its capacity to preserve net interest.
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.