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AU SFB Q4 Results Review: Poised To Deliver Historical High RoA Levels — Centrum Broking Hikes Target Price
AU Small Finance Bank is well-positioned to deliver sustainable 18% book value CAGR, making it an attractive investment, says Centrum Broking
23 Apr 2025, 11:23 AM IST 
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AU SFB's NII for the quarter stood at Rs 20.9 billion, marginally ahead of the brokerages' estimate of Rs 20.3 billion, largely driven by lower interest expenses. (Photo: AU Small Finance Bank/Facebook)
Over the last five years, AU Small Finance Bank stock has traded at a mean P/ABV multiple of ~4x on a oneyear forward basis. However, it has delivered negligible returns, primarily due to a significant de-rating of multiples. Further, the bank delivered 20% BV CAGR during the same period. Currently, the stock is trading at a deeply discounted level of mean minus 2SD, reflecting overly pessimistic market sentiment.
