AU Small Finance bank is trading around Rs. 706, as of October 25th, 2023, with a marketcap of Rs. 47,178 crores 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, examine its most recent results, and forecast its possible future growth. You will have a better idea of whether AU Small Finance Bank 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
- AU Small Finance Bank has launched the ‘Heart to Cart‘ Shopping Festival, offering a wide range of discounts, cashback, and exclusive deals on their credit and debit cards, spanning various categories and partnerships with over 30 top-tier brands, providing customers with a festive shopping extravaganza from October 15 to November 15.
- AU Small Finance Bank has unveiled its brand campaign “Soch Badlo aur Bank Bhi” featuring actor Kiara Advani, promoting financial empowerment and emphasizing the bank’s product offerings in savings accounts, current accounts, and video banking with a focus on women’s evolving roles in financial decision-making in India.
Below are the trading platforms that you can use to purchase AU Small Finance Bank shares:
- Zerodha
- Upstox
- Groww
- AngelOne
- ICICIDirect
| When | Maximum Price | Minimum Price |
| October 2023 | ₹776.60 | ₹706.00 |
| November 2023 | ₹761.37 | ₹692.16 |
| December 2023 | ₹786.50 | ₹715.00 |
As of October 25th, the current share price is at ₹706.
The share price target for AU Small Finance Bank in the last quarter of 2023 presents a range of values. In October 2023, it is expected to fluctuate between a maximum of ₹776.60 and a minimum of ₹706.00 per share. November 2023 is anticipated to see a trading range between ₹761.37 (minimum) and ₹692.16 (maximum) per share.
By December 2023, the price is predicted to rise, ranging from a minimum of ₹715.00 to a maximum of ₹786.50 per share. These projections offer investors insight into potential price movements over the coming months, but market conditions can significantly influence actual outcomes.
| When | Maximum Price | Minimum Price |
| January 2024 | ₹802.55 | ₹697.87 |
| February 2024 | ₹818.93 | ₹712.11 |
| March 2024 | ₹835.64 | ₹726.64 |
| April 2024 | ₹811.30 | ₹705.48 |
| May 2024 | ₹799.31 | ₹695.05 |
| June 2024 | ₹828.09 | ₹720.08 |
| July 2024 | ₹819.81 | ₹712.87 |
| August 2024 | ₹852.60 | ₹741.39 |
| September 2024 | ₹886.70 | ₹771.05 |
| October 2024 | ₹869.32 | ₹755.93 |
| November 2024 | ₹895.40 | ₹778.60 |
| December 2024 | ₹917.78 | ₹798.07 |
The share price target for AU Small Finance Bank in 2024 demonstrates a fluctuating yet generally optimistic trend. In January, the stock is expected to trade between a maximum of ₹802.55 and a minimum of ₹697.87 per share. As the year progresses, the share price is projected to rise, with February showing a range of ₹818.93 (minimum) to ₹712.11 (maximum).
March is expected to see further growth, with a range of ₹835.64 (minimum) to ₹726.64 (maximum). The upward trajectory continues into the following months, and by December 2024, the share price target reaches a maximum of ₹917.78 and a minimum of ₹798.07 per share. These predictions indicate a positive outlook for the bank’s shares in 2024, but actual market conditions may vary.
| When | Maximum Price | Minimum Price |
| January 2025 | ₹936.14 | ₹720.10 |
| February 2025 | ₹960.14 | ₹738.57 |
| March 2025 | ₹997.58 | ₹767.37 |
| April 2025 | ₹978.02 | ₹752.33 |
| May 2025 | ₹949.54 | ₹730.41 |
| June 2025 | ₹992.27 | ₹763.28 |
| July 2025 | ₹972.81 | ₹748.32 |
| August 2025 | ₹1,002.90 | ₹771.46 |
| September 2025 | ₹1,038.00 | ₹798.46 |
| October 2025 | ₹1,064.99 | ₹819.22 |
| November 2025 | ₹1,091.61 | ₹839.70 |
| December 2025 | ₹1,118.90 | ₹860.69 |
The share price target for AU Small Finance Bank in 2025 presents an optimistic outlook with a consistent upward trajectory. In January 2025, the stock is expected to trade within a range of ₹720.10 (minimum) to ₹936.14 (maximum) per share. As the year progresses, the share price is forecasted to experience steady growth. February is expected to see a range of ₹738.57 (minimum) to ₹960.14 (maximum). March continues this trend with a range of ₹767.37 (minimum) to ₹997.58 (maximum), indicating a significant increase. This upward momentum carries into the subsequent months, with the share price projected to rise gradually.
By December 2025, the share price target reaches a maximum of ₹1,118.90 and a minimum of ₹860.69 per share, suggesting substantial growth over the course of the year. These predictions indicate a positive market sentiment and confidence in AU Small Finance Bank’s performance in 2025. However, it’s important to note that actual market conditions can be influenced by a variety of factors, and these projections should be considered as estimates.
| Year | Maximum Price | Minimum Price |
| 2026 | ₹1,174.85 | ₹822.39 |
| 2027 | ₹1,292.33 | ₹904.63 |
| 2028 | ₹1,809.26 | ₹904.63 |
| 2029 | ₹1,566.46 | ₹783.23 |
| 2030 | ₹2,036.40 | ₹1,425.48 |
The share price targets for AU Small Finance Bank for the years 2026 to 2030 show a significant upward trend, indicating a positive long-term outlook for the bank’s stock. In 2026, the share price is expected to range between ₹822.39 (minimum) and ₹1,174.85 (maximum) per share, demonstrating substantial growth potential.
The following years continue to exhibit a bullish trend, with 2027 projecting a range of ₹904.63 (minimum) to ₹1,292.33 (maximum). By 2028, the share price is anticipated to reach even higher levels, with a maximum of ₹1,809.26 and a minimum of ₹904.63 per share.
While 2029 might see a slight dip in the share price range, it remains promising, ranging from ₹783.23 (minimum) to ₹1,566.46 (maximum) per share. Finally, in 2030, the bank’s stock is forecasted to reach a maximum of ₹2,036.40 and a minimum of ₹1,425.48 per share, indicating a substantial long-term growth potential.
Financial Condition of AU Small Finance Bank: 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. According to Sharekhan, you can continue buying AU Small Finance Bank share with a target price of Rs800.
Motilal Oswal has given a buy call on AU Small Finance Bank. According to Motilal Oswal, you can continue buying AU Small Finance Bank 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 October 25th 2023, the current share price of AU Small Finance Bank is INR 706.
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 ₹1,118.90 and ₹720.10.
AU Small finance bank share price target for 2025: Maximum – ₹1,118.90 Minimum – ₹720.10
AU Small finance bank share price target for 2025: Maximum – ₹2,036.40 Minimum – ₹1,425.48
Some factors that could affect the share price of AU Small Finance Bank include economic conditions, changes in interest rates, regulatory changes, and competition in the banking industry.
The historical performance of AU Small Finance Bank’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’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’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’s shares include diversification, dollar-cost averaging, and setting stop-loss orders.
Investors can find more information about AU Small Finance Bank’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
- 2 How to purchase AU Small Finance Bank shares?
- 3 AU Small Finance Bank Share Price Prediction: 2023 to 2030
- 4 Financial Condition of AU Small Finance Bank: Last 5 years (2019 to 2023)
- 5 AU Small Finance Bank share price target by Experts
- 6 FAQS
- 6.1 What is the current share price of AU Small Finance Bank?
- 6.2 Can the share price of AU Small Finance Bank 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?
- 6.6 What is the historical performance of AU Small Finance Bank’s share price?
- 6.7 How can investors evaluate the potential for growth in AU Small Finance Bank’s share price?
- 6.8 What are some risks associated with investing in AU Small Finance Bank’s shares?
- 6.9 What are some strategies investors can use to manage risk when investing in AU Small Finance Bank’s shares?
- 6.10 Where can investors find more information about AU Small Finance Bank’s share price target?
- 7 Conclusion
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