Can Equitas SFB weather the second wave of the pandemic?
As the situation improves, we expect the stock of Equitas SFB to gradually re-rate
June 16, 2021 / 04:58 PM IST
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
Equitas Small Finance Bank (CMP: Rs 60, MCap: Rs 6842 crore) has weathered the first wave of the pandemic relatively well except for significant asset quality issues in its microfinance book. The bank has done aggressive write-offs and provisions and has maintained a decent pace of growth. However, the second wave of the pandemic has thrown a spanner in the works. Can it survive in style or will this lead to a de-rating of the stock?
Asset quality – can...