AU Small Finance Bank (NSEI:AUBANK) - Share price, News & Analysis

AUBANK fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	0/6
Past Performance	1/6
Financial Health	4/6
Dividends	0/6

AUBANK Stock Overview

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

Risk Analysis

High level of non-cash earnings

Significant insider selling over the past 3 months

AU Small Finance Bank Competitors

Price History & Performance

Summary of all time highs, changes and price drops for AU Small Finance Bank
Historical stock prices
Current Share Price	₹614.45
52 Week High	₹732.98
52 Week Low	₹462.50
Beta	0.80
1 Month Change	-4.65%
3 Month Change	1.90%
1 Year Change	18.67%
3 Year Change	74.50%
5 Year Change	n/a
Change since IPO	126.88%

Shareholder Returns

	AUBANK	IN Banks	IN Market
7D	-1.5%	2.8%	2.3%
1Y	18.7%	-6.4%	-0.9%

Return vs Industry: AUBANK exceeded the Indian Banks industry which returned -6.3% over the past year.

Return vs Market: AUBANK exceeded the Indian Market which returned -1.7% over the past year.

Price Volatility

Is AUBANK's price volatile compared to industry and market?
AUBANK volatility
AUBANK Average Weekly Movement	5.0%
Banks Industry Average Movement	5.2%
Market Average Movement	6.9%
10% most volatile stocks in IN Market	9.9%
10% least volatile stocks in IN Market	4.5%

Stable Share Price: AUBANK is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: AUBANK's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1996	27,817	Sanjay Agarwal	https://www.aubank.in

AU Small Finance Bank Limited provides various banking and financial services in India. It operates through Treasury, Retail Banking, Wholesale Banking, and Other Banking Operations segments. The company offers savings and current accounts, escrow accounts, fixed and recurring deposits, and COVID shield deposit; debit and credit cards; locker services; and investment products.

AU Small Finance Bank Fundamentals Summary

How do AU Small Finance Bank's earnings and revenue compare to its market cap?
AUBANK fundamental statistics
Market Cap	₹388.19b
Earnings (TTM)	₹11.30b
Revenue (TTM)	₹38.67b

34.4x

P/E Ratio

5.2x

P/B Ratio

Is AUBANK overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
AUBANK income statement (TTM)
Revenue	₹38.67b
Cost of Revenue	₹0
Gross Profit	₹38.67b
Other Expenses	₹27.37b
Earnings	₹11.30b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	17.93
Gross Margin	100.00%
Net Profit Margin	29.22%
Debt/Equity Ratio	79.7%

How did AUBANK perform over the long term?

See historical performance and comparison

Dividends

0.08%

Current Dividend Yield

3%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is AUBANK undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AUBANK?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for AUBANK. This is calculated by dividing AUBANK's market cap by their current preferred multiple.
What is AUBANK's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹388.19b

AUBANK key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does AUBANK's PE Ratio compare to its peers?

AUBANK PE Ratio vs Peers

The above table shows the PE ratio for AUBANK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	102.6x

Forward PE

Price-To-Earnings vs Peers: AUBANK is good value based on its Price-To-Earnings Ratio (34.4x) compared to the peer average (102.6x).

Price to Earnings Ratio vs Industry

How does AUBANK's PE Ratio compare vs other companies in the Indian Banks Industry?

Price-To-Earnings vs Industry: AUBANK is expensive based on its Price-To-Earnings Ratio (34.4x) compared to the Indian Banks industry average (12x)

Price to Earnings Ratio vs Fair Ratio

What is AUBANK's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AUBANK PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	34.4x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate AUBANK's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of AUBANK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AUBANK (₹614.45) is trading above our estimate of fair value (₹113.49)

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

Price to Earnings Growth Ratio

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

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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

18.6%

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.

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Examine AU Small Finance Bank's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
AU Small Finance Bank competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

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

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

25.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AUBANK has a high level of non-cash earnings.

Growing Profit Margin: AUBANK's current net profit margins (29.2%) are lower than last year (37.6%).

Past Earnings Growth Analysis

Earnings Trend: AUBANK's earnings have grown significantly by 25.7% per year over the past 5 years.

Accelerating Growth: AUBANK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AUBANK had negative earnings growth (-3.5%) over the past year, making it difficult to compare to the Banks industry average (43.6%).

Return on Equity

High ROE: AUBANK's Return on Equity (15%) is considered low.

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Financial Health

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

Financial Health Score

4/6

Financial Health Score 4/6

Asset Level
Allowance for Bad Loans
Low Risk Liabilities
Loan Level
Low Risk Deposits
Level of Bad Loans

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Financial Institutions Analysis

Asset Level: AUBANK's Assets to Equity ratio (9.2x) is low.

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

Low Risk Liabilities: 85% of AUBANK's liabilities are made up of primarily low risk sources of funding.

Loan Level: AUBANK has an appropriate level of Loans to Assets ratio (67%).

Low Risk Deposits: AUBANK's Loans to Deposits ratio (88%) is appropriate.

Level of Bad Loans: AUBANK has a high level of bad loans (2%).

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.081%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: AUBANK's dividend (0.081%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.44%).

High Dividend: AUBANK's dividend (0.081%) is low compared to the top 25% of dividend payers in the Indian market (1.9%).

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

Earnings 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.

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Management

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

2.0yrs

Average management tenure

CEO

Sanjay Agarwal (50 yo)

14.33yrs

Tenure

Mr. Sanjay Agarwal, C.A, has been Managing 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 Finance...

CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Sanjay's total compensation is reasonable compared to companies of similar size in the Indian market.

Compensation vs Earnings: Sanjay's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

Leadership Team

Experienced Management: AUBANK's management team is considered experienced (2 years average tenure).

Board Members

Experienced Board: AUBANK's board of directors are considered experienced (5.8 years average tenure).

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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31