Morgan Stanley has maintained its overweight rating on AU Small Finance Bank (SFB) with a share price target of ₹780, implying a 19.5% upside from the current market price (CMP). The bank’s Q2 performance exceeded expectations on both margins and costs, with higher margins helping to offset the impact of elevated credit costs.
However, the report highlighted a negative aspect in the sequential moderation of coverage (excluding write-offs) and the liquidity coverage ratio (LCR).
Currently, AU SFB’s stock is trading at ₹652.90.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult with a qualified financial advisor before making any investment decisions.
