⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
AUBANK - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.3
| Stock Code | AUBANK | Market Cap | 73,547 Cr. | Current Price | 984 ₹ | High / Low | 1,030 ₹ |
| Stock P/E | 31.8 | Book Value | 243 ₹ | Dividend Yield | 0.10 % | ROCE | 8.40 % |
| ROE | 14.2 % | Face Value | 10.0 ₹ | DMA 50 | 963 ₹ | DMA 200 | 834 ₹ |
| Chg in FII Hold | 1.95 % | Chg in DII Hold | -0.64 % | PAT Qtr | 668 Cr. | PAT Prev Qtr | 561 Cr. |
| RSI | 44.3 | MACD | -1.11 | Volume | 12,51,768 | Avg Vol 1Wk | 23,69,771 |
| Low price | 478 ₹ | High price | 1,030 ₹ | PEG Ratio | 1.38 | Debt to equity | 7.87 |
| 52w Index | 91.6 % | Qtr Profit Var | 26.3 % | EPS | 31.0 ₹ | Industry PE | 22.6 |
📊 Core Financials
- Revenue & Profitability: PAT rose from 561 Cr. to 668 Cr. (+26.3% variance), showing healthy growth momentum.
- Margins: ROE at 14.2% is decent, but ROCE at 8.4% is relatively weak compared to peers.
- Debt: Debt-to-equity ratio of 7.87 indicates high leverage, which adds financial risk.
- Cash Flow: Profitability supports cash generation, but debt burden may strain liquidity.
💹 Valuation Indicators
- P/E Ratio: 31.8 vs. industry average of 22.6 — slightly expensive.
- P/B Ratio: Current price (₹984) vs. book value (₹243) → ~4.0x, premium valuation.
- PEG Ratio: 1.38, suggesting growth is priced fairly.
- Intrinsic Value: Moderately stretched valuation, justified only if earnings growth sustains.
🏢 Business Model & Competitive Advantage
- AU Small Finance Bank focuses on retail banking, SME lending, and financial inclusion.
- Competitive advantage lies in strong presence in semi-urban and rural markets, with growing customer base.
📈 Technicals & Entry Zone
- DMA 50 (₹963) and DMA 200 (₹834) show strong support levels below current price.
- RSI at 44.3 indicates neutral momentum; MACD negative suggests mild weakness.
- Entry Zone: Attractive near ₹900–950 for long-term investors.
- Long-Term Holding: Suitable for patient investors; strong growth potential but debt levels must be monitored.
✅ Positive
- Strong quarterly PAT growth (+26.3%).
- ROE at 14.2% reflects decent shareholder returns.
- FII holdings increased (+1.95%), showing foreign investor confidence.
⚠️ Limitation
- High debt-to-equity ratio (7.87) increases financial risk.
- ROCE at 8.4% is weak compared to peers.
- Dividend yield of 0.10% is very low.
📉 Company Negative News
- DII holdings decreased (–0.64%), showing reduced domestic institutional confidence.
- MACD negative (–1.11), indicating short-term weakness in momentum.
📈 Company Positive News
- Quarterly PAT improved to 668 Cr., reflecting operational strength.
- FII holdings increased significantly (+1.95%), boosting investor sentiment.
🏭 Industry
- Banking sector benefits from rising credit demand and financial inclusion initiatives in India.
- Industry average P/E (22.6) highlights AU Bank’s premium valuation.
🔎 Conclusion
- AU Small Finance Bank shows strong earnings growth and decent ROE but carries high debt risk.
- Valuations are moderately stretched compared to industry averages.
- Recommendation: Accumulate near ₹900–950 for long-term holding. Suitable for investors seeking exposure to retail banking growth, but debt levels must be closely monitored.