NSEI:AUBANK

Stock Analysis Report

AU Small Finance Bank

Executive Summary

AU Small Finance Bank Limited provides various banking and financial services in India.


Snowflake Analysis

Solid track record with adequate balance sheet.


Similar Companies

Share Price & News

How has AU Small Finance Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AUBANK's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.5%

AUBANK

-1.5%

IN Banks

-0.7%

IN Market


1 Year Return

104.3%

AUBANK

7.5%

IN Banks

10.0%

IN Market

Return vs Industry: AUBANK exceeded the Indian Banks industry which returned 7.5% over the past year.

Return vs Market: AUBANK exceeded the Indian Market which returned 10% over the past year.


Shareholder returns

AUBANKIndustryMarket
7 Day2.5%-1.5%-0.7%
30 Day32.4%-1.4%-0.3%
90 Day46.4%-2.6%3.2%
1 Year104.6%104.3%7.9%7.5%12.0%10.0%
3 Yearn/a13.0%11.7%23.9%17.1%
5 Yearn/a15.1%11.4%38.3%25.6%

Price Volatility Vs. Market

How volatile is AU Small Finance Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is AU Small Finance Bank undervalued compared to its fair value and its price relative to the market?

51.32x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AUBANK (₹1174.6) is trading above our estimate of fair value (₹67.98)

Significantly Below Fair Value: AUBANK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AUBANK is poor value based on its PE Ratio (51.3x) compared to the Banks industry average (18.1x).

PE vs Market: AUBANK is poor value based on its PE Ratio (51.3x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AUBANK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AUBANK is overvalued based on its PB Ratio (9.8x) compared to the IN Banks industry average (0.6x).


Next Steps

Future Growth

How is AU Small Finance Bank forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.7%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as AU Small Finance Bank has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has AU Small Finance Bank performed over the past 5 years?

14.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AUBANK has high quality earnings.

Growing Profit Margin: AUBANK's current net profit margins (30.2%) are higher than last year (22%).


Past Earnings Growth Analysis

Earnings Trend: AUBANK's earnings have grown by 14.7% per year over the past 5 years.

Accelerating Growth: AUBANK's earnings growth over the past year (93.5%) exceeds its 5-year average (14.7% per year).

Earnings vs Industry: AUBANK earnings growth over the past year (93.5%) exceeded the Banks industry 25.5%.


Return on Equity

High ROE: AUBANK's Return on Equity (19.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is AU Small Finance Bank's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: AUBANK has a low level of unsold assets or inventory.

Debt Coverage by Assets: AUBANK's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

Asset Level: AUBANK's level of assets compared to its equity is moderate.

Allowance for Bad Loans: Insufficient data to determine if AUBANK has a sufficient allowance for bad loans.

Low Risk Liabilities: AUBANK's liabilities are made up of primarily low risk sources of funding.

Loan Level: AUBANK has an acceptable proportion of non-loan assets held.

Low Risk Deposits: AUBANK's loans are broadly funded by customer deposits.

Level of Bad Loans: AUBANK has a high level of bad loans (2.03%)


Next Steps

Dividend

What is AU Small Finance Bank's current dividend yield, its reliability and sustainability?

0.063%

Current Dividend Yield


Dividend Yield vs Market

company0.06%marketbottom25%0.6%markettop25%2.6%industryaverage0.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: AUBANK's dividend (0.063%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: AUBANK's dividend (0.063%) is low compared to the top 25% of dividend payers in the Indian market (2.56%).


Stability and Growth of Payments

Stable Dividend: AUBANK is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: AUBANK is not paying a notable dividend for the Indian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: AUBANK is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AUBANK's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.8yrs

Average management tenure


CEO

Sanjay Agarwal (48yo)

12yrs

Tenure

₹16,901,154

Compensation

Mr. Sanjay Agarwal has been Managing Director and Director of AU Small Finance Bank since February 14, 2008 and serves as its Chief Executive Officer. Mr. Agarwal serves as Managing Director at Au Housing  ...


CEO Compensation Analysis

Compensation vs Market: Sanjay's total compensation ($USD235.06K) is below average for companies of similar size in the Indian market ($USD1.15M).

Compensation vs Earnings: Sanjay's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Sanjay Agarwal
MD, CEO & Director12yrs₹16.90m24.86% 88.7b
Deepak Jain
Chief Financial Officer9.8yrs₹16.12m0.35% 1.3b
Vimal Jain
Chief of Finance & Accounts10.1yrsno data0.014% 49.2m
Manmohan Parnami
Company Secretary & Compliance Officer3.2yrs₹4.66m0.021% 75.1m
Manoj Tibrewal
Group Head of HR0yrsno data0.45% 1.6b
Uttam Tibrewal
Executive Director15.1yrs₹14.65m1.17% 4.2b
Vijendra Shekhawat
Chief of Operations - Assets7.8yrsno data0.013% 48.1m
Rishi Dhariwal
Chief of Secured Business Loans6.3yrsno data0.032% 114.2m
Vivek Tripathi
Chief of Strategy Business Solutions & Transaction Banking5.8yrsno data0.020% 70.9m
Yogesh Jain
Group Head of Strategy - Treasury0yrsno data0.018% 65.2m

7.8yrs

Average Tenure

45yo

Average Age

Experienced Management: AUBANK's management team is seasoned and experienced (7.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sanjay Agarwal
MD, CEO & Director12yrs₹16.90m24.86% 88.7b
Uttam Tibrewal
Executive Director15.1yrs₹14.65m1.17% 4.2b
Jyoti Ishwar Narang
Non-Executive Independent Director4.9yrs₹1.76m0.00079% 2.8m
Murali Venugopalan
Independent Part-Time Non-Executive Chairman2.8yrs₹2.52mno data
Mankal Sriram
Additional Independent Director0.3yrsno datano data
Krishan Rathi
Non-Executive Independent Director11.4yrs₹1.92m0.031% 110.8m
Narendra Ostawal
Non-Executive Director2.1yrsno datano data
Raj Verma
Non Executive Independent Director2.1yrs₹1.78mno data
Pushpinder Singh
Additional Independent Director0.3yrsno datano data
V. Kannan
Independent Director0.08yrsno datano data

2.5yrs

Average Tenure

57.5yo

Average Age

Experienced Board: AUBANK's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: AUBANK insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

AU Small Finance Bank Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AU Small Finance Bank Limited
  • Ticker: AUBANK
  • Exchange: NSEI
  • Founded: 1996
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: ₹356.821b
  • Shares outstanding: 304.08m
  • Website: https://www.aubank.in

Number of Employees


Location

  • AU Small Finance Bank Limited
  • Bank House
  • Mile 0, Ajmer Road
  • Jaipur
  • Rajasthan
  • 302001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
540611BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 2017
AUBANKNSEI (National Stock Exchange of India)YesEquity SharesININRJul 2017

Biography

AU Small Finance Bank Limited provides various banking and financial services in India. The company offers savings and current accounts, term deposits, and recurring deposits; debit cards; locker services; and investment products. It also provides vehicle, gold, home, and agri business loans; secured business loans to micro, small, and medium enterprises; fund and non-fund based credit facilities to small and medium enterprise customers; lending to non-banking financial companies, housing financial companies, and micro finance institutions; and loans to real estate companies. In addition, the company offers third-party products, such as life, health, motor, general, and fire insurance, as well as mutual funds; digital banking services; treasury management services; and government banking services to central government, states governments, central and state public sector undertakings, boards, and other government departments. As of March 31, 2019, it operated 322 branches, 83 asset centers, 86 banking outlets, 67 business correspondents, 14 offices, and 543 ATMs. The company was formerly known as AU Financiers (India) Limited and changed its name to AU Small Finance Bank Limited in May 2017. AU Small Finance Bank Limited was founded in 1996 and is headquartered in Jaipur, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 13:14
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.