AU Small Finance Bank share price gained a little over 2 percent after global brokerage firm Morgan Stanley has initiated coverage with overweight rating on the stock.
The research house has set a target of Rs 725 per share for the stock, implying 19.3 percent potential upside over Thursday's closing price.
Morgan Stanley expects the non-banking finance company to report strong growth and high profitability going ahead.
"While the stock is not cheap w.r.t to Sensex multiples, we expect premium valuation to persist," the brokerage firm said.
With effect from November 1, 2017, AU Small Finance Bank is a 'Scheduled Bank'.
Meanwhile, its profit for July-September quarter increased to Rs 68 crore from Rs 62 crore and net interest income rose 12 percent to Rs 220 crore on year-on-year basis.
At 14:53 hours IST, the stock price was quoting at Rs 614.65, up Rs 6.85, or 1.13 percent on the BSE.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
