We maintain our BUY rating on the stock and value EQSFB at 2.1x FY23E ABV to arrive at a target price of Rs 76/share, implying an upside of 21% from CMP.
We maintain a BUY on the stock and value it at 1.9x FY23E ABV to arrive at a target price of Rs 70, implying an upside of 26% from CMP.
Based on the above themes we recommend the following stocks: ICICI Bank, SBI, Equitas SFB, Federal Bank, Bharti Airtel, HCL Tech, Tech Mahindra, Varun Beverages, Relaxo Footwears, Amber Enterprises, Camlin Fine Science, Minda Industries, Steel Strip Wheels. Lupin & ACC
We value EQSFB at 1.9x P/ABV on FY23E ABV and arrive at a target price of Rs 72, implying an upside of 21% from CMP.
The continued traction in the liability franchise, shift towards a more secured book along with control over opex augur well for the bank. We maintain a BUY on the stock with a target price of Rs. 46. (1.3x FY23E ABV).
Strong non-microfinance led AUM growth, ramp-up in low-cost deposits on the back of a revamped liability strategy, visibility in improvement in ROA/ROE to upwards of 2%/16% resp. in the long term with operating leverage kicking in and an experienced and competent management are key positives.
Equitas Small Finance Bank Limited - IPO Note Issue Open: Oct 20 Oct 22, 2020 Price Band: Rs. 32 33 Issue Size: 156,848,485 eq shares (Fresh Issue of 84,848,485 eq sh + Offer for Sale of 72,000,000 eq sh ) Issue Size: Rs. 501.9 517.6 cr Reservation for: QIB Upto 50% eq sh Non Institutional atleast 15% eq sh Retail atleast 35% eq sh Employee Reservation: Rs.1 cr EHL Shareholder Reservation: Rs 51.0 cr Face Value: Rs 10 Book value: Rs 26.47 (June 30, 2020) Bid size: - 450 equity shares and in multiples thereof
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