Axis Capital On Equitas Small Finance Bank

Maintain Add, TP Rs 76 Management has guided for 20%+ growth in FY27E on product traction. MFI will be maintained at ~10% of AUM-mix. Cost To Income is expected to improve in H2FY27E on operating leverage Supporting a full-year RoA of ~1.2%, with an exit of ~1.5%. Over the medium term, Equitas expects its business-mix to remain stable, enabling a sustained 20%+ growth with limited incremental capex Targets a steady-state RoA of ~1.5% (range 1.0-1.8%) Reflecting inherent cyclicality in its segments but moderated by a diversified secured portfolio

AU SMALL FINANCE BANK LTD

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