AU Small Finance Bank Ltd.
NSE: AUBANKAU Small Finance Bank Ltd.: A 30-second snapshot
AU Small Finance Bank (AUBANK) trades at ₹969.15, up 38.4% over the past 12 months and 6.9% above its 200-DMA of ₹906.93, though marginally below its 50-DMA of ₹972.96. Trailing PE stands at 27.6 with a forward PE of 15.93, against a 5-year revenue CAGR of 37.1% and earnings CAGR of 62.6%. The bank has reported positive free cash flow in 4 of the available fiscal years and carries a quality score of 58, ranking first among the 6 peers in the sector data.
P/E
27.6
Forward P/E
15.9
ROE
—
Debt / Equity
—
Profit Margin
+21.4%
Div. Yield
+0.1%
5Y ROE > 15%
0/5
5Y FCF > 0
4/5
Quality
68/100
News
8 headlines · 4 positive · 0 negative
AU Small Finance Bank Q3 Results 2026 - Find AU Small Finance Bank Q3 Earnings Result | AUBANK Q3 results - Mint
Mint
RBI okays Kotak stake acquisitions in Federal Bank, AU Bank, J&K Bank - The Statesman
The Statesman
Buy AU Small Finance Bank Ltd for the Target Rs. 1,275 by Motilal Oswal Financial Services Ltd - Investment Guru
Investment Guru
Tata Steel, AU Bank, BEL: Motilal Oswal picks 6 stocks to buy in May 2026 - Business Standard
Business Standard
Net loan losses of AU Small Finance Bank Limited – NSE:AUBANK - TradingView
TradingView
Recent context
- ·RBI approved Kotak Mahindra Bank's acquisition of a stake in AU Bank in May 2026, a corporate action that introduces a significant new institutional shareholder into the register.
- ·Motilal Oswal named AUBANK among six stocks in its May 2026 stock picks, citing a third-party price objective of ₹1,275 — the broker's own stated rationale, not a view endorsed by VivaTrades.
- ·Q3 2026 results coverage appeared in Mint on 29 May 2026; the news corpus of 8 articles carries 4 positive and 4 neutral items with zero negative headlines in the captured window.
Strengths
- +Revenue has grown at a 5-year CAGR of 37.1% and earnings at 62.6%, placing AUBANK among the faster-growing entities in the banking peer set over the measurement period.
- +Free cash flow was positive in 4 of the available fiscal years, suggesting the bank has generated surplus cash despite an expansionary phase.
- +At ₹969.15, the price is 6.9% above the 200-DMA of ₹906.93, indicating the longer-term trend remains positive over the past year.
- +Quality score of 58 ranks first of 6 peers in the sector comparison, ahead of AXISBANK (50), HDFCBANK (50), BAJFINANCE (53), BAJAJFINSV (23), and HDFCLIFE (20).
Weaknesses
- −ROE data is unavailable and 0 years of ROE above 15% are recorded across the persistence window — an unusual gap for a bank and a limitation on assessing returns on equity capital.
- −Debt trend is classified as rising with no absolute debt-to-equity figure available; for a bank scaling aggressively, the direction of leverage without a denominator leaves the capital structure partially unquantifiable.
- −Fundamental consistency score of 55/100 reflects mixed across-the-board profitability metrics despite strong headline revenue and earnings growth rates.
- −At a trailing PE of 27.6 — above AXISBANK (15.1) and HDFCBANK (16.6) but near BAJFINANCE (29.1) — the valuation embeds a growth premium that hinges on sustaining historical CAGR pace into future periods.
Open questions
- ?Does the 5-year earnings CAGR of 62.6% reflect a structural competitive advantage in AU Bank's small-finance franchise, or is it primarily a function of the low base from which the bank started its scaling journey?
- ?What does the absence of ROE data and the zero-years-above-15% record in the persistence window imply about capital efficiency as the bank transitions toward a universal banking licence?
- ?How does the Kotak stake acquisition change AU Bank's strategic direction, governance structure, or access to capital — and what are the implications for existing shareholders?
- ?Given the forward PE of 15.93 versus trailing PE of 27.64, what level of near-term earnings growth would need to materialise for the current valuation to be consistent with the bank's peer multiples?
Peer comparison: Banking
Ranks 1 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| AUBANK | AU Small Finance Bank Ltd.You're viewing | 27.6 | — | 58 |
| Industry avg | across 5 peers | 31.2 | +14.2% | 39 |
| BAJFINANCE | Bajaj Finance Ltd. | 29.1 | +17.9% | 53 |
| AXISBANK | Axis Bank Ltd. | 15.1 | +13.2% | 50 |
| HDFCBANK | HDFC Bank Ltd. | 16.6 | +13.8% | 50 |
| BAJAJFINSV | Bajaj Finserv Ltd. | 28.8 | +14.6% | 23 |
| HDFCLIFE | HDFC Life Insurance Company Ltd. | 66.2 | +11.3% | 20 |
Technical state
Current price
₹969.15
SMA 50
₹972.96
SMA 200
₹906.93
RSI (14)
43.7 (neutral)
From 52w high
-10.2%
1Y return
+38.4%
3M return
-1.3%
50-DMA
Below
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- mediumROE data is unavailable and the persistence record shows 0 years with ROE above 15%; for a bank in transition from small-finance to universal banking, the absence of a multi-year ROE track record limits assessment of sustainable profitability.
- mediumDebt trend is classified as rising with no absolute debt-to-equity figure reported. For a bank actively scaling its balance sheet, the direction of leverage growth without a quantified denominator is a material data gap.
- lowQuality score of 58 ranks 1st of 6 peers, but the peer set mixes banking, NBFC, and insurance entities — heterogeneous business models reduce the comparability of PE (27.6 vs peer range 15.1–66.2) and quality rankings.
- lowNews corpus totals 8 articles — below the threshold for a high-confidence sentiment reading. All 5 peer stocks have null 1-year price change data, removing relative price-performance ranking from the sector analysis.
Cross-section contradictions
- Fundamental consistency score of 55/100, 0 ROE years above 15%, and a rising debt trend — yet the stock has appreciated 38.4% over 12 months and sits only 10.2% below its 52-week high, a divergence between flagged profitability metrics and price performance.
- Forward PE of 15.93 represents a 42% compression from trailing PE of 27.64, implying significant near-term earnings acceleration is priced in — yet the 5-year earnings CAGR of 62.6% is an already-realised historical figure whose repeatability is unconfirmed.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Jun 2026 · rotates through NIFTY 500 every ~5 days