Equitas Small Finance Bank registers a 17% rise in net profit; should you buy, sell or hold?

Shares of Equitas Small Finance Bank climbed over 3 per cent in Thursday's (April 25) trade and touched the day's high at Rs 100.40 apiece on BSE. The uptrend in the stock can be attributed to the bank announcing its Q4FY24 results. 

At around 12:47 p.m., shares of Equitas Small Finance Bank traded 2.8 per cent, or Rs 2.73, higher at Rs 100.19 apiece. The market capitalisation of the company at around the same time stood at Rs 11,389.73 crore. The stock closed 1.60 per cent higher at Rs 99.02 apiece.

Equitas Small Finance Bank Q4 results 

For the fiscal year ending March 31, 2024, the bank reported a profit after tax (PAT) of Rs 798.96 crore, marking a significant rise from Rs 573.59 crore registered in the previous fiscal year. This performance underscores the bank's resilience and ability to navigate through challenging market conditions.

Total income during the quarter under review surged to Rs 1,685.10 crore from Rs 1,394.41 crore reported during the same quarter of the previous financial year. Similarly, for the fiscal year ending March 31, 2024, the total income stood at Rs 6,285.07 crore, compared to Rs 4,831.46 crore in the corresponding period of the previous financial year.

During the Board of Directors meeting held today, the bank proposed a dividend of Re 1 per share, subject to approval at the ensuing Annual General Meeting. 

Furthermore, the Board approved the appointment of Anil Kumar Sharma as an additional director (Independent) and Part-Time Chairman of the bank for a tenure of five years, effective from April 25. 

Should you buy, sell, or hold? 

ICICI Securities has upgraded the stock's rating from 'add' to 'buy' and has given a target price of Rs 120 apiece. 

"Overall, we expect Equitas to sustain RoA ~2% in FY25/26E.. valuing the stock at 1.8x on Sep’25E BVPS," the report read. 

Centrum has maintained a 'buy' on the stock for a target price of Rs 137 apiece. 

"We expect Equitas to sustain RoA ~2% in FY25/26E... valuing the stock at 1.8x on Sep’25E BVPS," the report read. 

In a year, Equitas Small Finance Bank shares have given a return of over 44 per cent against Nifty50's rise of over 26 per cent. 

(With inputs from agencies.) 

Catch the latest stock market updates here. For all other news related to business, politics, tech and auto, visit Zeebiz.com.

DISCLAIMER: The views and investment tips expressed by investment experts on zeebiz.com are their own and not those of the website or its management. zeebiz.com advises users to check with certified experts before taking any investment decisions.