AU Small Finance (AUBANK)

FairStock Score: 54/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach AUBANK as a banker would: growth is visible, but price matters. The latest quarter showed ₹4,727 Cr sales and ₹668 Cr net profit, while five-year revenue CAGR is 30.36% and profit growth 37.03%. Sales growth of 15.47% is steady but below the five-year trend, so I want to see whether the pace is normalizing. Piotroski F-Score 8/9 suggests improving fundamentals, and promoter holding of 22.79% gives some skin in the game. However, at ₹1,081.90 and market cap ₹81,035 Cr, P/E 28.65 and P/B 4.05 against book value ₹267.24, I am not paying a Graham bargain. Graham Number is ₹419.42 and DCF intrinsic value ₹488.78, implying negative margin of safety -128.49%. ROE 13.47% is respectable but not spectacular, ROCE 8.40% is low, and free cash flow is -₹916 Cr. Debt/equity 7.92 is normal for a lender, but Altman Z-Score 0.69 and EV/EBITDA 1,381.04 warn that leverage and valuation leave little room for error. Dividend yield 0.09% means almost no income. The 52-week range ₹760.75–₹1,143.90 shows the market has already recognized much of the story. My verdict: a fast-growing small finance bank with improving operations, but the stock is priced for continued execution. I would wait for a wider margin of safety or evidence that profit growth converts into cash and sustainable ROE. In Buffett's words, price is what you pay, value is what you get; here I need a better price.

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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer