India's Equitas Small Finance Bank up 4%; brokerage raises target price

Equitas Small Finance Bank

17/04/2023 10:38

** Shares of Indian private lender Equitas Small Finance
Bank  EQUI.NS  rise as much as 4.18% to 70.60 rupees, highest in
about a week
    ** Equirus Securities says co attained target loan book mix,
"done remarkably well" on deposits front
    ** Rating house lists loan growth and credit cost moderation
as key factors for bullish view on EQUI 
    ** Raises target price on EQUI to 95 rupees from 85 rupees;
reiterates "long" rating
    ** Co has prudently added/altered product bouquet by
launching loans for small finances, housing and vehicles - note
    ** "These segments are seeing healthy credit demand...
Equitas small player in each of these segments," say analysts
    ** Rating house expects net interest margin to stabilize at
~8.2% in FY 24/25 from 8.5% in FY 21 and average gross loans to
improve to ~7.1% by FY 25 from 8.7% in FY 20
    ** Improvement aided by wider launch of products,
digitization in processes, says Equirus 
    ** Brokerage remains positive on co among sectoral peers,
expects valuation re-rating
    ** EQUI announced growth in Q4 deposits and advances two
weeks ago 
    ** EQUI has risen ~21% so far in 2023 

 (Reporting by Hritam Mukherjee in Bengaluru)
 ((Hritam.Mukherjee@thomsonreuters.com;))