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AU Small Finance Bank Gets Yes Securities 'Neutral' Post Q1 Result; Says Current Valuations Caps Upside

AU SFB's valuation at 2.7x PBV and 18x P/E on FY27 estimates leaves little room for upside, hence Yes Securities moves rating to Neutral.

<div class="paragraphs"><p>AU SFB's slippages increased marginally to 1% (non-annualized) in Q1 FY26 as compared to 0.9% in Q4 FY25.&nbsp; (Photo: AU Small Finance Bank/Facebook)</p></div>
AU SFB's slippages increased marginally to 1% (non-annualized) in Q1 FY26 as compared to 0.9% in Q4 FY25.  (Photo: AU Small Finance Bank/Facebook)
AU Bank delivered a miss on street’s margin and credit cost expectations, but still managed to deliver 1.5% RoA with the support of substantial treasury income/gains and astute opex management.
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