NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Systematix Report
According to Systematix, small finance bank's valuations have corrected meaningfully and are trading close to trough levels (at or below -1SD), suggesting limited downside from current levels.
Ujjivan Small Finance Bank (Buy) and Equitas Small Finance Bank (Buy) remains systematix' top picks.
Strong earnings growth expected:
Most SFBs in our coverage have already reported 20%+ YoY assets under management growth in their pre-earnings updates. The brokerage expects net interest income / PPOP / PAT growth of ~31% / 17% / 74% YoY, supported by strong loan growth and lower credit costs, while net interest margins should improve modestly on better recoveries and a favorable mix shift toward higher-yielding MFI segment.
For Jana Small Finance Bank, the brokerage's estimates remain materially below management's PAT guidance of Rs 140 to -160 crore, reflecting the bank's historical trend of under-delivery relative to guidance. That said, any improvement in execution could result in a positive surprise relative to our estimates.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
