Buy Equitas Holding, target Rs 235: Angel Broking
As the entire book of Equitas qualifies for priority sector lending (PSL), meeting the 75 per cent PSL target will not be a challenge. Sizeable and diversified loan book will keep it ahead of other upcoming small finance bank (SFBs).
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| Updated: Angel Broking maintains a buy rating on Equitas Holdings with a 12-month target price of Rs 235. Equitas was one of the ten NBFCs to get the license to start a small finance bank (SFB).
As the entire book of Equitas qualifies for priority sector lending (PSL), meeting the 75 per cent PSL target will not be a challenge. Sizeable and diversified loan book will keep it ahead of other upcoming small finance bank (SFBs).
"We expect the company to post a strong loan book & earnings CAGR of 38 per cent and 37 per cent over FY2016-18E. The stock currently trades at 2.2x FY2018E BV," added the report.
As the entire book of Equitas qualifies for priority sector lending (PSL), meeting the 75 per cent PSL target will not be a challenge. Sizeable and diversified loan book will keep it ahead of other upcoming small finance bank (SFBs).
"We expect the company to post a strong loan book & earnings CAGR of 38 per cent and 37 per cent over FY2016-18E. The stock currently trades at 2.2x FY2018E BV," added the report.
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