Equitas Small Finance Bank Share Price Target 2025 Based on Future Growth Forecasts and Competitor Analysis

Equitas Small Finance Bank has been rapidly expanding its presence in the Indian banking sector, with a strong focus on microfinance and rural lending.

The bank's loan book grew by 45% YoY in FY21, driven by a 55% increase in microfinance disbursements.

Equitas Small Finance Bank has a strong presence in the southern states, with a network of over 560 branches and 2,500 ATMs.

Its asset quality has also improved significantly, with gross non-performing assets (NPAs) decreasing from 12.3% in FY18 to 4.5% in FY21.

By 2025, Equitas Small Finance Bank is expected to continue its growth trajectory, with a projected loan book of ₹50,000 crores and a 25% market share in the microfinance segment.

Equitas Small Finance Bank has shown a steady increase in revenue over the years, with a growth rate of 44% from INR 25,764 million in 2022 to INR 62,444 million in 2027.

The bank's earnings have also seen a significant improvement, with a growth rate of 124% from INR 2,807 million in 2022 to INR 12,157 million in 2027.

One notable trend is the improvement in free cash flow, which turned positive in 2023 with a value of INR 39,343 million, and then again in 2024 with a value of INR 30,183 million.

Here's a breakdown of the bank's cash flow from operations (CFO) and free cash flow (FCF) over the years:

The bank's cash from operations has been generally positive, with some fluctuations, while its free cash flow has seen significant improvements in recent years.

EQUITASBNK's earnings are forecast to grow 46.35% per year, significantly higher than the Indian market's growth rate of 18.1%. This indicates a strong potential for the company's earnings to increase in the coming years.

The company's revenue is also expected to grow at a rate of 17.7% per year, which is faster than the Indian market's growth rate of 10.6%. This suggests that EQUITASBNK is well-positioned to take advantage of the growing demand for its banking products and services.

Here's a summary of EQUITASBNK's earnings and revenue growth forecasts:

Overall, EQUITASBNK's strong earnings and revenue growth forecasts make it an attractive investment opportunity for those looking to grow their wealth over the long term.

Return on Equity (ROE) is a key metric that measures a company's profitability from shareholder's perspective.

The current ROE of EQUITASBNK is relatively low, which may indicate a need for improvement in their financial management.

Future projections suggest that EQUITASBNK's ROE will remain low, forecasted to be 14.7% in 3 years time.

The Equitas Small Finance Bank stock price is 65.910 INR today. This is a notable detail for anyone considering investing in the bank.

The bank provides various banking products and services to individuals and corporates, as well as micro, small, and medium enterprises in India. This wide range of services makes it a valuable resource for many businesses and individuals.

The Price-To-Earnings ratio of Equitas Small Finance Bank is 16.9x, which is below the Indian market average of 33x. This suggests that the bank's stock may be undervalued compared to its peers.

Earnings are forecast to grow 46.35% per year, which is a significant increase that could make the stock an attractive investment option for some.