Hold Au Small Finance Bank, target price Rs 1200: ICICI Securities

ICICI Securities has hold call on Au Small Finance Bank Ltd. with a target price of Rs 1200. The current market price of Au Small Finance Bank Ltd. is Rs 1146.

Time period given by analyst is one year when Au Small Finance Bank Ltd. price can reach defined target.
Au Small Finance Bank Ltd., incorporated in the year 1996, is a banking company (having a market cap of Rs 36178.63 Crore).


Financials
For the quarter ended 30-06-2021, the company reported a Standalone Total Income of Rs 1537.68 Crore, down -2.00 % from last quarter Total Income of Rs 1569.01 Crore and up 9.06 % from last year same quarter Total Income of Rs 1409.91 Crore. The bank reported net profit after tax of Rs 203.20 Crore in latest quarter.

Investment Rationale
Amid economic challenges for the industry, AU SFB’s ability to sustain asset quality and manage attrition will be key monitorables. It maintains HOLD with revised TP of Rs 1,200 (earlier: Rs1,250) to factor near-term concern around attrition.

Promoter/FII Holdings
Promoters held 28.4 per cent stake in the company as of June 30, 2021, while FIIs held 36.2 per cent, DIIs 17.1 per cent and public and others 18.3 per cent.