Home Finance AU Small Finance Bank gains as Edelweiss initiates coverage, sees 24% upside

AU Small Finance Bank gains as Edelweiss initiates coverage, sees 24% upside

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Edelweiss Securities has initiated coverage on AU Small Finance Bank with a buy rating and target price of Rs 880 apiece, implying 24 percent potential upside from current levels.

At 0916 hours IST, it was quoting at Rs 712, up Rs 3.85, or 0.54 percent on the BSE.

The non-banking finance company continues to deliver high loan growth without any asset quality incident and 30 percent-plus asset CAGR remains plausible for an extended period, the brokerage said.

It feels operating and financial leverage will continue to play through and return on average equity (RoAE) should nudge to 18 percent mark by FY21.

Disclaimer: The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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