Buy Equitas Holdings, target price Rs 64: Emkay Global
Equitas Holdings Ltd., incorporated in the year 2007, is a banking company (having a market cap of Rs 1758.51 Crore).
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Promoters held 0 per cent stake in the company as of June 30, 2020, while FIIs held 28.2 per cent, DIIs 30.3 per cent and public and others 41.6 per cent.
Emkay Global has given buy rating to Equitas Holdings with a target price of Rs 64. The share price moved up by 1.38 per cent from its previous close of Rs 50.65. The stock’s last traded price is Rs 51.35.
Equitas Holdings Ltd., incorporated in the year 2007, is a banking company (having a market cap of Rs 1758.51 Crore). Investment Rationale The brokerage has cut earnings estimates for FY21/FY22 further by 7%/13% with RoAs at 1%/1.1%, factoring in lower growth weighing on margins/fees and elevated credit cost. It maintains Buy on Equitas with a revised TP of Rs 64 based on 0.7x Sep’22E ABV, given healthy asset diversification, better management pedigree, capital position and reasonable valuations. Key risks to our call: Higher-than-expected NPAs and delay in the listing of SFB Subsidiary.
Promoter/FII Holdings Promoters held 0 per cent stake in the company as of June 30, 2020, while FIIs held 28.2 per cent, DIIs 30.3 per cent and public and others 41.6 per cent.
