India Equity Analyst - Fundamental & Thematic, Beat the Street

Sudarshan Bhandari

India Equity Analyst - Fundamental & Thematic

Beat the Street

Beat The Street was founded by Nimish Maheshwari and Sudarshan Bhandari, both of whom are Chartered Accountants by Profession, known for their expert analysis in the fields of Business, Sectoral analysis, and Corporate governance.

With a strong social media presence of 45,000+ Subscribers across various platforms, they are considered trusted voices in the industry. Their insights and analysis have been featured in some of India’s most prominent publications, including the Economic Times, Dalal Street Investment Journal, The Morning Context, and The Ken.

Their analysis on Bankrupt & Insolvent companies has been instrumental in saving investors from significant losses. They have a keen eye for identifying red flags and has identified exclusive redflags earlier in Vedanta, Nykaa, Dhani Services, Adani and many more.

Read Business Not Stock Prices

Equity Bottom-Up

<ul>
<li>On August 7, 2025, RBI granted AU Small Finance Bank in-principle approval to become India's first universal bank converted from SFB, the first full banking license issued in eleven years.</li>
<li>Universal bank status unlocks lower deposit costs (SFB rates run roughly 100bps above peers), eases the priority sector lending mandate from 60% to 40%, and removes product restrictions.</li>
<li>The structural rerating argument rests not on the license itself, but on whether AU can convert the funding cost advantage into sustainable NIM improvement while sustaining 20%+ loan growth.</li>
</ul>


On August 7, 2025, RBI granted AU Small Finance Bank in-principle approval to become India's first universal bank converted from SFB, the first full banking license issued in eleven years.
Universal bank status unlocks lower deposit costs (SFB rates run roughly 100bps above peers), eases the priority sector lending mandate from 60% to 40%, and removes product restrictions.
The structural rerating argument rests not on the license itself, but on whether AU can convert the funding cost advantage into sustainable NIM improvement while sustaining 20%+ loan growth.


AU Small Finance Bank: The First Graduate from India's SFB Sector

Market & Forensics Analyst, Beat the Street

Nimish Maheshwari

Market & Forensics Analyst

Thematic (Sector/Industry)

<ul>
<li>PSU bank credit growth exceeded private-bank growth in FY25 for the first time in more than a decade. Between FY22-FY26, private-bank share fell 14.5 percentage points in home-loans.</li>
<li>Asset quality has converged sharply. Competitive advantage is moving from provisioning relief to funding, pricing, distribution and the ability to deploy capital at an acceptable return.</li>
<li>The sector trade is no longer simply “private quality versus PSU risk.” One must distinguish volume share, absolute profit share, sustainable ROA and the valuation paid for each.</li>
</ul>


PSU bank credit growth exceeded private-bank growth in FY25 for the first time in more than a decade. Between FY22-FY26, private-bank share fell 14.5 percentage points in home-loans.
Asset quality has converged sharply. Competitive advantage is moving from provisioning relief to funding, pricing, distribution and the ability to deploy capital at an acceptable return.
The sector trade is no longer simply “private quality versus PSU risk.” One must distinguish volume share, absolute profit share, sustainable ROA and the valuation paid for each.


Why Indian Private Sector Large Cap Banks Are Not Performing?

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/au-small-finance-bank-limited" target="_blank" data-smartkarma-citation="entities:24196:1" rel="noopener">AU Small Finance Bank Limited (AUBANK IN)</a> has received approval from the Ministry of Finance to increase its Foreign Ownership Limit from 49% to 74% (the maximum permitted).</li>
<li>The increased FOL will result in passive inflows from global index trackers in February and March. The inflows are multiple days of ADV.</li>
<li>There has been little increase in positioning. The increased Foreign Ownership Limit and the passive flows to come could lead to the stock moving higher over the next few weeks.</li>
</ul>



AU Small Finance Bank Limited (AUBANK IN) has received approval from the Ministry of Finance to increase its Foreign Ownership Limit from 49% to 74% (the maximum permitted).
The increased FOL will result in passive inflows from global index trackers in February and March. The inflows are multiple days of ADV.
There has been little increase in positioning. The increased Foreign Ownership Limit and the passive flows to come could lead to the stock moving higher over the next few weeks.


AU Small Finance Bank (AUBANK IN): Increased FOL & Large Passive Flows/ Impact

External broker reports(aggregated public sources), Axis Direct

Axis Direct

External broker reports(aggregated public sources)

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>NIMs to Move in an Upward Trajectory: AUSFB’s NIM surprised positively, expanding by 5 bps in contrast to our expectations of margin contraction.</li><li>NIM expansion was driven by a sharp decline of 25 bps in CoF, lower slippages resulting in lower interest reversals, and utilisation of excess liquidity.</li><li>The management has guided for margin expansion to continue over the upcoming quarters, supported by continued deposit repricing, assuming no further rate cuts. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

NIMs to Move in an Upward Trajectory: AUSFB’s NIM surprised positively, expanding by 5 bps in contrast to our expectations of margin contraction.NIM expansion was driven by a sharp decline of 25 bps in CoF, lower slippages resulting in lower interest reversals, and utilisation of excess liquidity.The management has guided for margin expansion to continue over the upcoming quarters, supported by continued deposit repricing, assuming no further rate cuts. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

AU Small Finance Bank Ltd. - NIMs Surprise Positively; Asset Quality Outlook Turns Favourable!

External broker reports(aggregated public sources), HDFC Securities

HDFC Securities

HDFC securities is the best online trading platform for stocks, IPOs, mutual fund in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>India’s financial sector has remained resilient amid global uncertainties but rising geopolitical tensions, particularly conflicts affecting energy markets and trade flows, pose both challenges and opportunities</li><li>Banks and NBFCs are navigating a complex landscape shaped by external shocks, domestic elections, inflationary pressures, and evolving policy responses</li><li>The RBI has maintained a calibrated approach, balancing inflation control with growth support</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

India’s financial sector has remained resilient amid global uncertainties but rising geopolitical tensions, particularly conflicts affecting energy markets and trade flows, pose both challenges and opportunitiesBanks and NBFCs are navigating a complex landscape shaped by external shocks, domestic elections, inflationary pressures, and evolving policy responsesThe RBI has maintained a calibrated approach, balancing inflation control with growth supportContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Leveraged Financials: Risk Premium on the Rise, Flight to Safety

India

AU Small Finance Bank Limited is an Indian scheduled commercial small finance bank. It offers a diverse range of products including savings accounts, current accounts, fixed deposits, loans (vehicle, MSME, housing, personal, gold, agriculture), debit and credit cards, and insurance. The company was founded in 1996 and is headquartered in Jaipur, Rajasthan, India.

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AU Small Finance Bank (AUBANK IN)

AU Small Finance Bank: The First Graduate from India's SFB Sector

AU Small Finance Bank granted in-principle approval to become India's first universal bank, unlocking lower deposit costs and easing lending...

Sudarshan Bhandari

Why Indian Private Sector Large Cap Banks Are Not Performing?

Public-sector banks are using lower lending rates to win prime credit. The pressure on private banks is no longer about bad loans; it is about...

Nimish Maheshwari