Equitas Sma. Fin (EQUITASBNK)

FairStock Score: 35/100 — 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.

At ₹65.98, Equitas Small Finance presents as a classic show-me story. The share price is just 1.32 times book value of ₹49.82, so a value buyer may say the price is not demanding. But cheapness has to be justified by earnings power. Right now the bank earns a negative 1.13% ROE. That fails an elementary Buffett test: if equity is not growing earnings, book value is a shrinking asset. ROCE is 6.85%, positive, but that is not a banker's return on equity. The Piotroski F-Score of 7/9 is the best thing I see; it suggests the business, after a bad period, is improving on several fundamentals. And the latest quarter supports that: revenue of ₹1,692 Cr with net profit of ₹90 Cr. Yet the reported P/E is 0.00 because trailing twelve-month earnings are still negative. One profitable quarter is not a track record. The 35.79% profit growth is meaningless if the base is a loss. More concerning, promoter holding is zero and dividend yield is zero. I want owners with capital at risk, and I want some cash returned to me. Without that, I am entirely dependent on management promises. Also, sales growth of only 4.95% makes this a low-growth banking franchise, not a Fast Grower. The FairStock Score of 13/100 labels it risky—rightly so. For a lender, moat must show up in steady profits and low-cost capital; neither is proven here. Equitas is a turnaround candidate, not a proven compounder. I need multiple consecutive quarters of profits, a positive and rising ROE, and clarity on ownership before I put my money to work. Until then, I watch and wait.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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