Moneycontrol PRO
HomeNewsBusinessStocksBuy AU Small Finance Bank; target of Rs 780: Motilal Oswal

Buy AU Small Finance Bank; target of Rs 780: Motilal Oswal

Motilal Oswal is bullish on AU Small Finance Bank recommended buy rating on the stock with a target price of Rs 780 in its research report dated November 05, 2023.

November 07, 2023 / 13:17 IST
Buy
     
     
    26 Aug, 2025 12:21
    Volume
    Todays L/H
    More

    Motilal Oswal's research report on AU Small Finance Bank

    We attended AUBANK’s analyst meet wherein the management highlighted its rationale for merger with Fincare SFB and the outlook for the merged entity as bank aspires to reach a balance sheet of INR2t over next three years. The merger will improve the bank’s geographical diversification and improve AU’s branch presence across the country. New business verticals like MFI and Gold Loans will improve its lending yields and open new avenues for growth. Moreover, since Fincare is a rural-focused SFB with 85% of its advances qualifying under the priority sector (56% of MFI and 30% of overall book being SMF eligible), the merger will enable AUBANK to not only meet its PSL target, but also generate PSLC income in the long run.

    Outlook

    While its execution prowess to consummate the merger will be vital, we believe that the merger will enable AUBANK to further strengthen its position and deliver all-round growth. We reiterate BUY on the stock with a TP of INR780 (3.6x FY25E BV of standalone bank).

    For all recommendations report, click here

    Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

    AU Small Finance Bank - 05 - 10-2023 - moti

    Broker Research
    first published: Nov 7, 2023 01:07 pm

    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!

    Subscribe to Tech Newsletters

    • On Saturdays

      Find the best of Al News in one place, specially curated for you every weekend.

    • Daily-Weekdays

      Stay on top of the latest tech trends and biggest startup news.

    Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347