AU Small Finance Bank Analysis

dividend

Pros

Cons

• Unable to calculate sustainability of dividends as AU Small Finance Bank has not reported any payouts.
• Unable to evaluate AU Small Finance Bank's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate AU Small Finance Bank's dividend against the top 25% market benchmark as the company has not reported any payouts.

health

Pros

• AU Small Finance Bank's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).
• AU Small Finance Bank's liabilities are made up of primarily low risk sources of funding.
• AU Small Finance Bank has an acceptable proportion of non-loan assets held.
• Loans at AU Small Finance Bank are broadly funded by customer deposits.
• AU Small Finance Bank has an acceptable level of bad loans (less than 2%).

Cons

management

Pros

• The tenure for the AU Small Finance Bank board of directors is about average.
• Sanjay's remuneration is lower than average for companies of similar size in India.
• Sanjay's compensation has been consistent with company performance over the past year, both up more than 20%.
• The average tenure for the AU Small Finance Bank management team is over 5 years, this suggests they are a seasoned and experienced team.

Cons

• AU Small Finance Bank individual insiders have sold more shares than they have bought in the past 3 months.

misc

Pros

Cons

• AU Small Finance Bank is not covered by any analysts.
• AU Small Finance Bank has significant price volatility in the past 3 months.

past

Pros

• AU Small Finance Bank's 1-year earnings growth exceeds its 5-year average (76.2% vs 16.1%)
• AU Small Finance Bank's year on year earnings growth rate has been positive over the past 5 years.
• AU Small Finance Bank used its assets more efficiently than the IN Banks industry average last year based on Return on Assets.
• AU Small Finance Bank's earnings growth has exceeded the IN Banks industry average in the past year (76.2% vs 21%).

Cons

• AU Small Finance Bank has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

Pros

• 540611 outperformed the Banks industry which returned -37.5% over the past year.
• BSE:540611 is up 14.8% outperforming the Banks industry which returned 7.6% over the past month.
• BSE:540611 is up 14.8% outperforming the market in India which returned 8% over the past month.

Cons

• AU Small Finance Bank's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• AU Small Finance Bank's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• AU Small Finance Bank is overvalued based on assets compared to the IN Banks industry average.
• AU Small Finance Bank is overvalued based on earnings compared to the IN Banks industry average.
• AU Small Finance Bank is overvalued based on earnings compared to the India market.
• 540611 underperformed the Market in India which returned -14.5% over the past year.