AU Small Finance bank is trading around Rs. 739, as of June 23rd, 2023 with a marketcap of Rs. 49,313Crore with a 3 year CAGR of 24%. AU Small Finance Bank Ltd. is one stock that has recently attracted interest. Investors are unsure if this stock is a smart investment and if it will be able to reach the goal share price of 5000 INR by 2025.
In this piece, we’ll dig deep into the financial background of AU Small Finance Bank Ltd, examine its most recent results, and forecast its possible future growth. You will have a better idea of whether AU Small Finance Bank Ltd is a good stock to purchase and whether it can achieve the desired share price target of at the conclusion of this article.
Latest news about AU Small Finance Bank Ltd
- AU Small Finance Bank is up more than 25% in Q2, 2023.
- AU Bank joins the portfolio of Jefferies India while CAMS makes an exit.
- AU Small Finance Bank receives permission from the Reserve Bank of India (RBI) to engage in foreign exchange transactions.
- AU Small Finance Bank receives RBI approval for foreign exchange transactions.
- Sanjay Agarwal reappointed as MD and CEO of AU Small Finance Bank.
- Uttam Tibrewal reappointed as whole-time director of AU Small Finance Bank.
Below are the trading platforms that you can use to purchase AU Small Finance Bank Ltd shares:
- Zerodha
- Upstox
- Groww
- AngelOne
- ICICIDirect
| When | Maximum Price | Minimum Price |
| June 2023 | ₹770.00 | ₹690.77 |
| July 2023 | ₹828.00 | ₹636.92 |
| August 2023 | ₹910.80 | ₹700.62 |
| September 2023 | ₹956.34 | ₹735.65 |
| October 2023 | ₹910.80 | ₹700.62 |
| November 2023 | ₹1,001.88 | ₹770.68 |
| December 2023 | ₹1,122.11 | ₹863.16 |
AU Small Finance Bank, a Jaipur-based private sector lender, has received RBI approval to engage in foreign exchange transactions. The bank’s managing director and CEO, Sanjay Agarwal, along with whole-time director Uttam Tibrewal, have been reappointed for a three-year term, indicating stability in leadership.
Analysts predict a positive outlook for AU Small Finance Bank’s share price in 2023, with projected increases throughout the year. In December 2023, the share price is expected to reach ₹1,122.11 with a minimum of ₹863.16. These developments, along with RBI’s approval, contribute to positive investor sentiment, although market predictions carry inherent uncertainties.
| When | Maximum Price | Minimum Price |
| January 2024 | ₹1,181.16 | ₹908.59 |
| February 2024 | ₹1,327.15 | ₹1,105.96 |
| March 2024 | ₹1,397.00 | ₹1,135.77 |
| April 2024 | ₹1,270.00 | ₹976.92 |
| May 2024 | ₹1,058.33 | ₹814.10 |
| June 2024 | ₹1,270.00 | ₹976.92 |
| July 2024 | ₹1,079.50 | ₹836.82 |
| August 2024 | ₹1,187.45 | ₹942.42 |
| September 2024 | ₹1,246.82 | ₹959.09 |
| October 2024 | ₹1,466.85 | ₹1,128.35 |
| November 2024 | ₹1,540.19 | ₹1,184.76 |
| December 2024 | ₹1,571.00 | ₹1,208.46 |
AU SMALL FINANCE BANK LTD share prices for 2024 is expected to experience an overall bullish trend, with the maximum price reaching ₹1,571.00 in December 2024, and the minimum price expected to be ₹814.10 in May 2024. The growth percentages range from 30% to 93%, indicating a positive return for investors. However, there may be occasional dips in the share price, such as in April 2024. Investors should closely monitor market trends and the company’s performance to make informed investment decisions. It’s worth noting that the stock may not always perform as predicted, and there may be bearish periods during the year.
| When | Maximum Price | Minimum Price |
| January 2025 | ₹1,602.42 | ₹1,232.63 |
| February 2025 | ₹1,686.75 | ₹1,297.50 |
| March 2025 | ₹1,771.09 | ₹1,362.38 |
| April 2025 | ₹1,581.33 | ₹1,216.41 |
| May 2025 | ₹1,437.57 | ₹1,105.83 |
| June 2025 | ₹1,581.33 | ₹1,216.41 |
| July 2025 | ₹1,506.03 | ₹1,158.49 |
| August 2025 | ₹1,568.78 | ₹1,206.76 |
| September 2025 | ₹1,647.22 | ₹1,267.09 |
| October 2025 | ₹1,746.05 | ₹1,343.12 |
| November 2025 | ₹1,868.28 | ₹1,437.14 |
| December 2025 | ₹1,905.64 | ₹1,465.88 |
The prediction for AU SMALL FINANCE BANK LTD share prices in 2025 is bullish, with the maximum price expected to be ₹1,905.64 in December 2025, and the minimum price predicted to be ₹1,105.83 in May 2025. The growth percentages range from 10% to 72%, indicating a positive return for investors. The average target price for the year is estimated to be around ₹1,600. The data suggests that there is upside potential in the stock, making it a potentially attractive investment option. Overall, the recommendation for the stock seems to be positive.
| Year | Maximum Price | Minimum Price |
| 2023 | ₹1,122.11 | ₹442.31 |
| 2024 | ₹1,571.00 | ₹908.59 |
| 2025 | ₹1,905.64 | ₹1,216.41 |
| 2026 | ₹1,333.95 | ₹933.77 |
| 2027 | ₹1,133.86 | ₹793.70 |
| 2028 | ₹2,040.94 | ₹1,428.66 |
| 2029 | ₹4,192.42 | ₹2,934.69 |
| 2030 | ₹4,668.83 | ₹3,268.18 |
The maximum and minimum price targets for AU Small Finance Bank Ltd’s shares in 2026 are ₹1,333.95 and ₹933.77, respectively. For the years 2027 and 2028, the maximum share price targets are ₹1,133.86 and ₹2,040.94, respectively, with corresponding minimum share price targets of ₹793.70 and ₹1,428.66. Looking further ahead, the maximum and minimum price targets for 2029 and 2030 are ₹4,192.42 and ₹2,934.69, and ₹4,668.83 and ₹3,268.18, respectively.
These figures suggest an overall bullish trend in the long term, with the average target price increasing steadily over the years. However, investors should be aware that market conditions and other factors may impact the share price and should therefore conduct their own research and make informed decisions based on their individual investment goals and risk tolerance.
Financial Condition of AU Small Finance Bank Ltd: Last 5 years (2019 to 2023)
| Year | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 |
|---|---|---|---|---|---|
| Revenue | 2,949 | 4,286 | 4,950 | 5,922 | 8,205 |
| Interest | 1,607 | 2,377 | 2,585 | 2,688 | 3,780 |
| Expenses | 1,163 | 1,612 | 2,224 | 2,634 | 3,595 |
| Financing Profit | 180 | 296 | 142 | 601 | 830 |
| Financing Margin % | 6% | 7% | 3% | 10% | 10% |
| Other Income | 462 | 706 | 1,421 | 994 | 1,034 |
| Depreciation | 62 | 89 | 104 | 140 | 0 |
| Profit before tax | 580 | 914 | 1,458 | 1,454 | 1,865 |
| Tax % | 34% | 26% | 20% | 22% | 23% |
| Net Profit | 382 | 675 | 1,171 | 1,130 | 1,428 |
| EPS in Rs | 6.53 | 11.09 | 18.75 | 17.94 | 21.42 |
| Dividend Payout % | 6% | 0% | 0% | 3% | 5% |
Note: All figures are in crore rupees.
AU Small Finance Bank Ltd has witnessed consistent growth over the past five years. Its revenue has increased steadily, reaching ₹8,205 crores in March 2023. The bank has maintained a positive financing profit, rising from ₹180 crores in 2019 to ₹830 crores in 2023. Other income contributed significantly, with a spike to ₹1,421 crores in March 2021.
Profitability before tax grew from ₹580 crores in 2019 to ₹1,865 crores in 2023. Net profit rose from ₹382 crores to ₹1,428 crores. The bank’s EPS improved to ₹21.42. AU Small Finance Bank has demonstrated resilience and sound financial management, establishing itself as a reliable player in the banking industry.
Sharekhan has given a buy call on AU Small Finance Bank Ltd. According to Sharekhan, you can continue buying AU Small Finance Bank Ltd share with a target price of Rs800.
Motilal Oswal has given a buy call on AU Small Finance Bank Ltd. According to Motilal Oswal, you can continue buying AU Small Finance Bank Ltd share with a target price of Rs.760.
AU Small Finance Bank receives a downgrade from Nomura, shifting its rating from neutral to reduce. Additionally, Nomura adjusts the bank’s price target from INR 630 to INR 650.
Gaurav Bissa of InCred Equities recommends purchasing AU Small Finance Bank with a target of Rs 850 within a three-month timeframe.
FAQS
As of June 23rd 2023, the current share price of AU Small Finance Bank Ltd is INR 739.
There is no definitive answer to this question, as it depends on a variety of factors such as market conditions, industry trends, and company performance. As per our analysis, AU Small finance bank share price in 2025 could trade in between ₹1,905.64 and ₹1,216.41.
AU Small finance bank share price target for 2025: Maximum – ₹1,905.64 Minimum – ₹1,216.41
AU Small finance bank share price target for 2025: Maximum – ₹4,668.83 Minimum – ₹3,268.18
Some factors that could affect the share price of AU Small Finance Bank Ltd include economic conditions, changes in interest rates, regulatory changes, and competition in the banking industry.
The historical performance of AU Small Finance Bank Ltd’s share price has been positive, but past performance is not a guarantee of future results.
Investors can evaluate the potential for growth in AU Small Finance Bank Ltd’s share price by analyzing the company’s financial statements, management team, industry trends, and competition.
Some risks associated with investing in AU Small Finance Bank Ltd’s shares include market volatility, economic uncertainty, regulatory changes, and company-specific risks such as credit risk and operational risk.
Some strategies investors can use to manage risk when investing in AU Small Finance Bank Ltd’s shares include diversification, dollar-cost averaging, and setting stop-loss orders.
Investors can find more information about AU Small Finance Bank Ltd’s share price target by consulting with financial advisors, conducting research on market trends and industry analysis, and monitoring company news and financial reports.
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Conclusion
AU Small Finance Bank has demonstrated consistent and impressive growth in both sales and profits over the past decade. With a compounded sales growth of 34% over the last 10 years and 36% over the past 5 years, the bank has consistently expanded its revenue base. Similarly, the compounded profit growth has been remarkable, with growth rates of 33% over 10 years and 37% over 5 years. In the more recent period, the bank has continued to perform well, with a compounded sales growth of 24% over the last 3 years and an impressive 39% in the trailing twelve months (TTM). The compounded profit growth has also remained strong, with growth rates of 28% over 3 years and 26% in the TTM period. These growth figures reflect the bank’s ability to generate consistent and sustainable financial performance.
In terms of stock price, AU Small Finance Bank has delivered substantial returns over different time horizons. The stock price has achieved a compounded annual growth rate (CAGR) of 17% over the past 5 years, indicating consistent appreciation in value for investors. Furthermore, the bank has shown exceptional growth in stock price over the last 3 years, with a CAGR of 40%, showcasing its strong market performance during that period. Even in the past year, the stock price has maintained positive growth, with a 21% return.
Another important metric to consider is the bank’s return on equity (ROE), which indicates the efficiency of capital utilization. AU Small Finance Bank has consistently delivered a commendable ROE over different time frames. With an ROE of 20% over 10 years, 18% over 5 years, and 19% over the last 3 years and in the last year, the bank has demonstrated its ability to generate strong returns for its shareholders.
In my opinion, AU Small Finance Bank’s financial performance, reflected in its impressive sales and profit growth, stock price appreciation, and healthy ROE, highlights its strong position in the market and underscores its potential as an attractive investment opportunity.
What did we learn?
- 1 Latest news about AU Small Finance Bank Ltd
- 2 How to purchase AU Small Finance Bank Ltd shares?
- 3 AU Small Finance Bank Ltd Share Price Prediction: 2023 to 2030
- 4 Financial Condition of AU Small Finance Bank Ltd: Last 5 years (2019 to 2023)
- 5 AU Small Finance Bank Ltd share price target by Experts
- 6 FAQS
- 6.1 What is the current share price of AU Small Finance Bank Ltd?
- 6.2 Can the share price of AU Small Finance Bank Ltd reach INR 5000 by 2025?
- 6.3 What is AU Small Finance Bank share price target for 2025?
- 6.4 What is AU Small Finance Bank share price target for 2030?
- 6.5 What are some factors that could affect the share price of AU Small Finance Bank Ltd?
- 6.6 What is the historical performance of AU Small Finance Bank Ltd’s share price?
- 6.7 How can investors evaluate the potential for growth in AU Small Finance Bank Ltd’s share price?
- 6.8 What are some risks associated with investing in AU Small Finance Bank Ltd’s shares?
- 6.9 What are some strategies investors can use to manage risk when investing in AU Small Finance Bank Ltd’s shares?
- 6.10 Where can investors find more information about AU Small Finance Bank Ltd’s share price target?
- 7 Conclusion
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