AU Small Fin Bank
05.01.2022 - MS on AU Small Fin Bk Maintain Overweight CMP 1095 Target 1500
CITI ON AU SMALL FIN BANK : 02.09.2021
* Buy Due To Its Long Growth Runaway, Improving Biz Environment
* Asset Quality Trends Are Also Positive With Gradual NIM Expansion
* Stock Trading At 4.3x FY23e For Likely RoE Of 19%
* Recent Exits Are Entirely Driven By Personal Reasons
* MAINTAIN BUY TARGET: 1,500
CITI ON AU SMALL BANK : 02.09.2021
• Maintain BUY, target at Rs 1500/share
• AU Bank hosted a conference call to allay concerns on reduce employee exit
* Bank reiterated that some challenges remain around head office location (Jaipur)
* Maintain our Buy on AU Bank due to its long growth runaway
* See Improving business environment and asset quality trends
NOMURA ON AU SMALL FIN BANK : 02.09.2021
* Three Exits In Three Months Largely From The Audit/Risk Departments
* The 10-15% Fall In Stock Price Highlights A Much Larger Concern
* Recent Exits Largely Biz-as-usual In Nature & We Prefer Not To Dwell Much Into
* Stock Reaction Highlights Concerns Over Stretched Valns & Asset Quality Risks
* Some Divergences In Asset Quality Are Difficult To Comprehend
* Positive On Its Long-term Story But Less Comfort In The Near-term Outlook
* MAINTAIN NEUTRAL TARGET: 1,200
MORGAN STANLEY ON AU BANK : 01.09.2021
• Maintain Overweight, Target at Rs 1500/share
* AU Bank has clarified recent management changes
• Stock been under pressure because of news flow around these changes
MS ON AU SMALL FIN BANK : 06.07.2021
* MAINTAIN OVERWEIGHT TARGET: 1,150
* Morgan Stanley is OVERWEIGHT on AU Small Fin Bank, target at Rs 1,031/sh
* GNPLs Flat Sequentially But The Bank Restructured 2% Of Loans In Q1
* Total Impaired Loans Now At 8.2%
* ECLGS Lending Was $300 Cr In Q1 Vs 20 Cr YoY
* AUM Growth Stable On A YOY Basis & Down 3% QoQ
MS on AU Small Bk : 06.07.2021
* OW, TP Rs 1150
* Bk provided an initial update on key metrics for F1Q22
* GNPLs flat sequentially but bk restructured 2% of loans – total impaired loans now at 8.2%
* ECLGS lending was Rs3.0bn (0.9% of loans) vs. Rs0.2bn in F1Q21
* AUM growth stable YoY & down 3% QoQ
