AU Small Finance Bank Ltd.
ISIN: INE949L01017 • Market Cap: ₹80,340 Cr
The 5-Pillar Quality Audit for AU Small Finance Bank Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (23.3%), Return on Capital Employed (14.2%), and equity compounding (14.4%).
2. Financial Health & Solvency
Weight: 25%Assesses capital adequacy, provisioning coverage, and asset liability structure.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (22.3%) and 3Y PAT CAGR (23.0%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 28.13 vs PEG of 1.26 and Dividend Yield of 0.1%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 22.7%, backed by 68.8% institutional ownership.
Key Fundamental Strengths
Strong Topline Expansion (3Y Sales CAGR: 22.3%)
Revenue has expanded at 22.3% CAGR over 3 years, signaling industry market-share gains.
High-Velocity Profit Compounding (3Y PAT CAGR: 23.0%)
Net earnings have compounded at 23.0% annualized, demonstrating operating leverage.
Deep Institutional Sponsorship (68.8%)
Mutual funds, domestic DIIs, and foreign FIIs hold 68.8%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Financial Services)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Financial Services space.
Quantitative Strategy Eligibility
Checking AUBANK against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 81/100 and clean gearing.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Financial Services Sector Peer Comparison
Compare AUBANK directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| AU Small Finance Bank Ltd. (AUBANK)Current | 81/100 | ₹80,340 Cr | 28.13 | 14.2% | N/A | — |
| HDFC Bank Ltd. (HDFCBANK) | 74/100 | ₹11.10 Lakh Cr | 14.05 | 12.8% | 1.01 | View |
| ICICI Bank Ltd. (ICICIBANK) | 76/100 | ₹10.06 Lakh Cr | 17.94 | 16.5% | 0.62 | View |
| State Bank of India (SBIN) | 71/100 | ₹9.66 Lakh Cr | 11.20 | 12.2% | 1.38 | View |
| Bajaj Finance Ltd. (BAJFINANCE) | 68/100 | ₹6.72 Lakh Cr | 33.07 | 13.9% | 3.86 | View |
| Life Insurance Corporation of India (LICI) | 87/100 | ₹5.22 Lakh Cr | 8.70 | 37.8% | 0.00 | View |
Frequently Asked Questions: AU Small Finance Bank Ltd.
Q:What is the 5-Pillar Fundamental Score for AU Small Finance Bank Ltd. (AUBANK)?
AU Small Finance Bank Ltd. has a RupeeTools Fundamental Score of 81/100, placing it in the 'Exceptional Quality' category. Its pillar scores are: Profitability (76/100), Financial Health (77/100), Growth (86/100), Valuation (75/100), and Ownership Quality (92/100).
Q:Is AUBANK fundamentally strong for long-term investment?
Yes, AUBANK exhibits solid fundamental strength with a 81/100 score, driven by a return on equity of 14.4% and a debt-to-equity ratio of 0.70.
Q:Does AUBANK pass the Coffee Can Investing filter?
Yes! AUBANK satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does AUBANK compare against other Financial Services peers?
Within India's Financial Services sector, AUBANK trades at a P/E of 28.13 and generates an ROCE of 14.2%. Compare its 5-Pillar score of 81/100 against top sector peers like HDFC Bank Ltd. (74/100), ICICI Bank Ltd. (76/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.