Stock market tip: AU Small Finance Bank shares may gain 50 pct in 24 months, say share market experts
Stock market experts say AU Small Finance Bank share price can go up to Rs 925 per stocks as the SFBs fundamentals are very strong in mid-term to long-term.
Stock market on April 24 intraday trade witnessed heavy short covering as share market investors had to square-off their short positions due to F&O expiry falling on April 25th. As per Dalal Street experts, this triggered the rally at Sensex and Nifty indices, which may continue on April 25th too. In such a scenario, shares to buy is a big task that the market investors have to come across after squaring off their positions on April 25. for them, market experts are betting high on AU Small Finance Bank shares as the financial sector stock is poised to touch Rs 925 per stock levels in 24 months or in two years. Currently, the AU Small Finance Bank share price is oscillating around Rs 615 per shares means in two years an investor can expect to bag around 50 per cent return on his or her investment if they choose to take their position in the AU Small Finance Bank shares, say experts.
Giving details of the strong fundamentals of the AU Small Finance Bank Rajiv Mehta, Executive Vice President at Yes Securities said, "An encouraging Q4 FY19 - progress on deposits, resilient growth/NIM and RoA expansion, moderation in opex growth; robust asset quality and an enviable franchise and structural compounder suggests an upside potential in the AU Small Finance Bank shares." On his suggestion to the stock market investors Rajiv Mehta of Yes Securities said, "Currently, the upside potential shows that the counter can touch Rs 925/stocks in 24 months from the current Rs 615/stock levels."
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Standing in sync with Yes Securities views Deepak Kumar, Research Analyst at Narnolia Financial Advisors said, "AU BANK is one of the fastest growing SFBs; it has grown at a CAGR (Cumulative Average Growth Rate) of 48 per cent YoY over the last 2 years. However, with the higher base and recent slowdown in the auto industry is likely to impact AU Bank growth in the near term. On the liability front, it has successfully scaled up its deposit and replacing the high cost of borrowings. Strong underwriting and effective supervision have kept the asset quality in check both for the retail & wholesale segment. After an aggressive expansion of bank branches, now management expects to slow down the pace of branch opening and hence Cost to Income or C/I ratio is likely to reduce going ahead with improvement in operational efficiency. Another income growth has shown good traction with healthier balance sheet growth."
On his suggestion to the stock market advisors in regard to the AU Small Finance Bank shares in short-term perspective Deepak Kumar of Narnolia Financial Advisors said, "In the short-term perspective, the AU Small Finance Bank share price is expected to scale from current levels (Rs 615/stock) to Rs 669 per shares means around 8 per cent rise in near one month time."
Maintaining bullish stance on the AU Small Finance Bank share price Darpin Shah, Analyst at HDFC Securities said, "Strong fundamentals of the AU Small Finance Bank suggests and upside potential and the counter can touch Rs 680/stock levels in small-term perspective."
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Therefore, from experts point of view the AU Small Finance Bank share price is expected to go up in mid-term to long-term perspective.
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