Update shared on15 Aug 2025
Fair value Decreased 9.76%Despite a notable improvement in net profit margin, the significant decline in future P/E suggests weaker earnings growth expectations, leading analysts to lower their fair value target for Equitas Small Finance Bank from ₹74.56 to ₹67.28.
What's in the News
- Board meetings scheduled to consider unaudited financial results for the June 2025 quarter and to discuss raising further capital through various instruments including NCDs and equity shares.
- Launch of new products targeting NRIs and seafarers: FCNR(B) Deposit in USD and Equitas Explorer Savings Account, offering features like tax-free interest, international debit cards, insurance cover, and simplified account opening.
- Shareholder and board approvals sought for raising capital up to INR 125 billion via qualified institutions placement and other securities.
- Private placement announced to raise INR 12.5 billion through qualified institutional placement.
- Consideration of unpublished price sensitive information in a June 2025 board meeting.
Valuation Changes
Summary of Valuation Changes for Equitas Small Finance Bank
- The Consensus Analyst Price Target has fallen from ₹74.56 to ₹67.28.
- The Future P/E for Equitas Small Finance Bank has significantly fallen from 10.32x to 7.75x.
- The Net Profit Margin for Equitas Small Finance Bank has significantly risen from 19.40% to 23.59%.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.