EQUITAS SMALL FINANCE BANK SHARE PRICE TARGET 2024, 2025 TO 2030: CAN EQUITAS SMALL FINANCE BANK REACH 200 INR?

Equitas Small Finance Bank has emerged as a significant player in the Indian NBFC space. With its roots as a microfinance institution, Equitas Small Finance Bank has rapidly expanded its offerings, embracing diverse sectors like vehicle and housing finance, SME, and LAP. It’s a bank that has not only geographically diversified but also diversified its loan book, serving millions of clients.

Examining critical factors such as geographical reach, loan portfolio composition, asset quality, and key developments, this article will provide valuable insights into the bank’s growth potential. Investors and financial enthusiasts keen on understanding whether Equitas Small Finance Bank can reach the coveted 200 INR share price mark will find this analysis invaluable. In a financial landscape characterized by change and growth, Equitas Small Finance Bank’s journey holds the promise of a compelling narrative for the future.

This article explores the potential trajectory of Equitas Small Finance Bank’s share price in the coming years, with a keen focus on the targets for 2024, and 2025, and even looking ahead to 2030.

As of 3rd December 2023, Equitas Small Finance Bank’s share price is trading at Rs. 95.10 with a market cap of Rs. 10,731 Crore.

ABOUT EQUITAS SMALL FINANCE BANK

Equitas Small Finance Bank, formerly known as Equitas Microfinance Ltd, is a public small finance bank that was founded in 2016 in Chennai, India. 

It operates as a subsidiary of Equitas Holdings Ltd. The bank received its license from the Reserve Bank of India (RBI) in June 2016 and began banking operations in September 2016, becoming a scheduled bank in February 2017.

Notably, it went public through an initial public offering (IPO) in October 2020 and later completed a reverse merger with its holding company in March 2023. Additionally, Equitas Small Finance Bank is dedicated to philanthropic efforts, committing a portion of its profits to social services, including educational initiatives and programs to improve the lives of marginalized communities in Chennai.

Equitas Small Finance Bank Q1 FY2024 Results: Summary and Key Points 

• Equitas Small Finance Bank reported a net profit of Rs. 191.20 crores for Q1 FY2024, showing a slight increase from the previous quarter.
• The bank’s total income for the same period was Rs. 1425.33 crores, reflecting a positive QoQ growth of 2.22%.
• In a YoY comparison, the bank’s net profit surged significantly by 97.10% from Q1 FY2023 to Q1 FY2024, indicating robust financial performance.
• Equitas Small Finance Bank’s asset quality improved, with Gross NPA decreasing from 4.10% in Q1 FY2023 to 2.75% in Q1 FY2024.
• The bank maintained a healthy Capital Adequacy Ratio (CAR) of 22.06% in Q1 FY2024, ensuring its financial stability.

EQUITAS SMALL FINANCE BANK IN RECENT NEWS

• Arun Ramanathan, who serves as the Part-Time Chairman and Non-Executive Independent Director of the bank, stated that they aim to bolster their consumer finance portfolio in the upcoming years by venturing into credit cards and personal loans. This strategic move is anticipated to enhance stability by diversifying their loan portfolio.
• Additionally, the bank is actively investing in the development of a mobile app aimed at assisting merchants in enhancing their business operations.

HOW TO BUY EQUITAS SMALL FINANCE BANK SHARES IN INDIA?

To buy Equitas Small Finance Bank shares in India, you can use the services of various brokerage companies such as:

1. Zerodha
2. PayTM Money
3. HDFC Securities
4. Sharekhan
5. Kotak Securities
6. Axis Direct
7. Upstox
8. 5Paisa
9. Motilal Oswal
10. Angel Broking

We recommend PayTM Money.

EQUITAS SMALL FINANCE BANK SHARE PRICE TARGET 2023 TO 2025

Let’s examine the statistics regarding the projected share price target for the period between 2023 and 2025, after conducting a thorough review of the company.

Equitas Small Finance Bank Share Price Target for 2023

When	Maximum Price	Minimum Price
December 2023	₹99.68	₹85.16

As of 3rd December 2023, Equitas Small Finance Bank’s share price stands at ₹95. Market analysts project that by December 2023, the share price could potentially reach ₹99.68, indicating a promising path of growth and value appreciation for investors.

Equitas Small Finance Bank Share Price Target for 2024

When	Maximum Price	Minimum Price
January 2024	₹102.59	₹89.12
February 2024	₹97.54	₹84.82
March 2024	₹98.52	₹85.67
April 2024	₹95.65	₹83.18
May 2024	₹93.78	₹81.55
June 2024	₹100.34	₹87.26
July 2024	₹103.35	₹89.87
August 2024	₹105.42	₹91.67
September 2024	₹107.53	₹93.50
October 2024	₹109.28	₹95.02
November 2024	₹113.65	₹98.83
December 2024	₹115.92	₹100.80

In the upcoming year, 2024, Equitas Small Finance Bank’s stock price appears to be on a reliable upward trend. Starting at a low of ₹89.12 in January, it consistently rises throughout the year.

By December 2024, the share price is projected to fluctuate between ₹100.80 (at the lowest) and ₹115.92 (at the highest), demonstrating a persistent pattern of growth throughout the year.

Equitas Small Finance Bank Share Price Target for 2025

When	Maximum Price	Minimum Price
January 2025	₹118.24	₹90.95
February 2025	₹124.46	₹95.74
March 2025	₹126.95	₹97.66
April 2025	₹125.70	₹96.69
May 2025	₹123.23	₹94.79
June 2025	₹126.31	₹97.16
July 2025	₹128.24	₹98.64
August 2025	₹132.89	₹102.22
September 2025	₹135.54	₹104.27
October 2025	₹138.26	₹106.35
November 2025	₹134.23	₹103.25
December 2025	₹136.91	₹105.32

In 2025, Equitas Small Finance Bank’s share price continues its upward trend.

Commencing the year at ₹90.95 in January 2025, it consistently rises and reaches ₹136.91 by December. The range for December 2025 spans from a minimum of ₹105.32 to a maximum of ₹136.91. This indicates a favorable outlook for investors, suggesting potential opportunities for continued growth and value appreciation throughout the year.

Equitas Small Finance Bank Share Price Target for 2026 TO 2030

Year	Maximum Price	Minimum Price
2026	₹157.45	₹110.22
2027	₹133.83	₹93.68
2028	₹173.98	₹116.57
2029	₹226.18	₹158.32
2030	₹237.49	₹166.24

From 2026 to 2030, Equitas Small Finance Bank’s share price follows a steady pattern of increase. Beginning the period at ₹110.22 in 2026, it progresses annually, reaching ₹237.49 by 2030. This data suggests a positive outlook for investors, hinting at the potential for significant growth and value appreciation during these five years.

EQUITAS SMALL FINANCE BANK FINANCIAL CONDITION (LAST 5 YEARS)

Year	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Revenue	2,112	2,645	3,194	3,460	4,162
Interest	964	1,150	1,396	1,421	1,617
Expenses+	1,015	1,304	1,628	2,123	2,361
Fin. Profit	133	191	170	-84	184
Fin. Margin %	6%	7%	5%	-2%	4%
Other Income+	283	282	418	538	670
Depreciation	92	96	76	75	85
Prof. before tax	324	377	511	378	769
Tax %	35%	35%	25%	26%	25%
Net Profit+	211	244	384	281	574
EPS in Rs	2.09	2.31	3.37	2.24	5.16
Div. Payout %	0%	0%	0%	0%	19%

Over the last five years, Equitas Small Finance Bank has shown significant growth in its financial performance. From March 2019 to March 2023, the bank’s revenue has steadily increased, reaching ₹4,162 million. Notably, the bank has effectively managed its expenses, even though they have risen, resulting in a positive financial margin of 4% in March 2023.

Equitas Small Finance Bank’s ability to generate other income has also improved, contributing to its profitability, with a net profit of ₹574 million in March 2023, a substantial increase compared to the previous years. A

Additionally, the bank has been distributing dividends to its shareholders, with a dividend payout of 19% in the last fiscal year. This data reflects a promising financial trajectory and a robust financial condition for the bank over this period.

EQUITAS SMALL FINANCE BANK SHARE PRICE TARGET BY BROKERAGE FIRMS AND EXPERTS

Equitas Small Finance Bank Share Price Target by Motilal Oswal

Motilal Oswal recommends purchasing Equitas Small Finance with a target price of Rs 110.

Also, read price predictions of other finance companies:

• UTKARSH SMALL FINANCE BANK SHARE PRICE TARGET 2023, 2024, 2025 TO 2030
• ANAND RATHI WEALTH SHARE PRICE TARGET 2023, 2024, 2025 TO 2030
• UJJIVAN FINANCIAL SERVICES SHARE PRICE TARGET 2023, 2024, 2025 TO 2030

FAQs

What is the share price target of Equitas Small Finance Bank by 2025?

Based on our analysis, Equitas Small Finance Bank’s share price target for 2025 demonstrates a consistent upward trend.

Starting at ₹90.95 in January, the share price is projected to continue its ascent, potentially reaching ₹123.23 by May and ₹136.91 by December. This indicates a positive trajectory, suggesting potential opportunities for growth within this timeframe.

What is the share price target of Equitas Small Finance Bank by 2030?

Looking ahead to 2030, the share price target for Equitas Small Finance Bank appears promising. The analysis highlights a steady pattern of increase in the share price over the years. Beginning at ₹110.22 in 2026, the share price is projected to rise steadily, potentially reaching ₹237.49 by 2030. This indicates a positive long-term outlook for the bank’s shares.

Is it worthwhile to invest in Equitas Small Finance Bank for the long term?

The provided analysis suggests that Equitas Small Finance Bank has demonstrated consistent growth in its share price over the years, both in the short term and long term. The projected increase in share prices until 2030 reflects a positive and potentially lucrative investment opportunity for those considering the long-term perspective.

Will the Equitas Small Finance Bank stock grow?

Yes, the analysis indicates that Equitas Small Finance Bank’s stock has displayed a consistent pattern of growth in recent years and is projected to continue this trend in the coming years. This positive trajectory suggests that the stock is likely to grow further, providing potential opportunities for investors.

Can Equitas Small Finance Bank reach ₹200 INR?

According to the analysis provided, the projected share price targets for Equitas Small Finance Bank demonstrate a steady and consistent increase over the years. Considering the upward trend in share prices, it is possible that the bank’s shares could reach or even exceed ₹200 INR in the future.

Conclusion: Is Equitas Small Finance Bank a good investment?

In conclusion, as we delve into Equitas Small Finance Bank’s potential share price targets spanning from 2023 to 2030, our analysis reveals a promising outlook. The bank’s market cap of ₹10,731 Cr and a current share price of ₹95 indicate a strong foundation for growth. Notably, the company has demonstrated an impressive profit growth rate of 78.3% CAGR over the past five years, underscoring its ability to generate returns for investors.

However, there are some concerns to be mindful of, such as a low-interest coverage ratio and a relatively modest return on equity of 10.7% over the last three years. Additionally, it’s crucial to note that earnings include a significant component from other income, totaling ₹708 Cr. These factors contribute to the company’s current P/E ratio of 14.3 which is below the median P/E of 16.9.

While the path to reaching ₹200 INR per share is not without challenges, the bank’s consistent growth, coupled with diligent risk assessment, could potentially drive share prices upward in the coming years. Ultimately, investors should consider these factors alongside their risk tolerance and long-term investment goals when evaluating Equitas Small Finance Bank as an investment opportunity.

I am personally a long-term investor in Equitas Small Finance Bank, and I will continue to hold it for a minimum of 3-5 years unless there are some drastic things wrong with the company.

Disclaimer: The article on ‘Equitas Small Finance Bank share price target from 2024 to 2030’ is created through analysis, but the price targets are not guaranteed. Readers are advised to do their own research, and consult a financial advisor before investing.