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.

Equity Bottom-Up

AU Small Finance Bank Limited / Equity Bottom-Up

<ul><li>Post the announcement of the merger, a point of discussion has been AUSFB’s intent to enter the microfinance (MFI) segment, a business it has been averse to in the past and its decision to acquire a Small Finance Bank (SFB), rather than a microfinancier.</li><li>We attended the analyst meet hosted by AU Small Finance Bank (AUSFB) to discuss the strategic motives and address the key concerns around the merger with Fincare Small Finance Bank (Fincare). We list a few of our key takeaways from the meeting.</li><li>Pan-India player with a diversified portfolio: A key positive from the merger with Fincare is that it will allow AUSFB to become a pan-India player with a diversified portfolio, given Fincare’s dominant presence in South and East India. </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.

Post the announcement of the merger, a point of discussion has been AUSFB’s intent to enter the microfinance (MFI) segment, a business it has been averse to in the past and its decision to acquire a Small Finance Bank (SFB), rather than a microfinancier.We attended the analyst meet hosted by AU Small Finance Bank (AUSFB) to discuss the strategic motives and address the key concerns around the merger with Fincare Small Finance Bank (Fincare). We list a few of our key takeaways from the meeting.Pan-India player with a diversified portfolio: A key positive from the merger with Fincare is that it will allow AUSFB to become a pan-India player with a diversified portfolio, given Fincare’s dominant presence in South and East India. 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. - Merger Synergies to Play-Out over Medium Term!

<ul><li>Advances grew by 24/2% YoY/QoQ, with growth driven by Home Loans (51/8% YoY/QoQ) and Business Banking Segment (+59/11% YoY/QoQ), while Wheels and SBL de-grew by ~1/2% QoQ respectively.</li><li>NII grew by 15% YoY and remained flat QoQ. Margins contracted further by 14bps QoQ and stood at 5.5%.</li><li>Non-interest income growth was primarily driven by healthy fee income (+47/43% YoY/QoQ). Opex growth was modest at 23/1% YoY/QoQ</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.

Advances grew by 24/2% YoY/QoQ, with growth driven by Home Loans (51/8% YoY/QoQ) and Business Banking Segment (+59/11% YoY/QoQ), while Wheels and SBL de-grew by ~1/2% QoQ respectively.NII grew by 15% YoY and remained flat QoQ. Margins contracted further by 14bps QoQ and stood at 5.5%.Non-interest income growth was primarily driven by healthy fee income (+47/43% YoY/QoQ). Opex growth was modest at 23/1% YoY/QoQContent 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 - Near-Term Headwinds on NIMs and Credit Costs to Persist!

<ul><li>Gross Advances grew by 29%/8% YoY/QoQ, led by growth in Wheels (+17%/11% YoY/QoQ), Home loans (+56%/10% YoY/QoQ), Credit cards (+3.3x YoY, on a small base) and business banking (+69%/11% YoY/QoQ).</li><li>Deposits grew by 27% on a YoY basis but stood flat on a QoQ basis.</li><li>The focus during the quarter was on consuming excess liquidity, rather than growing high- cost deposits.</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.

Gross Advances grew by 29%/8% YoY/QoQ, led by growth in Wheels (+17%/11% YoY/QoQ), Home loans (+56%/10% YoY/QoQ), Credit cards (+3.3x YoY, on a small base) and business banking (+69%/11% YoY/QoQ).Deposits grew by 27% on a YoY basis but stood flat on a QoQ basis.The focus during the quarter was on consuming excess liquidity, rather than growing high- cost deposits.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. - Margin Pressures & Elevated Opex to Hurt RoA!

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.

Thematic (Sector/Industry)

<ul><li>India’s heterogenous unsecured retail credit market (US$160bn, 3-year CAGR at ~23%) has been in the headlines ever since the RBI clamped down on select categories of consumer credit</li><li>Our discussions with experts suggest that the RBI’s note of caution is largely centred on small-ticket personal loans (STPL) (ticket size</li><li>The RBI’s risk-weight measures are likely to increase the hurdle rate for banks and NBFCs towards unsecured consumer loans, resulting in a material growth deceleration</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 heterogenous unsecured retail credit market (US$160bn, 3-year CAGR at ~23%) has been in the headlines ever since the RBI clamped down on select categories of consumer creditOur discussions with experts suggest that the RBI’s note of caution is largely centred on small-ticket personal loans (STPL) (ticket sizeThe RBI’s risk-weight measures are likely to increase the hurdle rate for banks and NBFCs towards unsecured consumer loans, resulting in a material growth decelerationContent 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: Emerging Long-Tail Risks in Unsecured Credit

<ul><li>Our POW calls delivered an excellent Monthly strike rate of 84% in Oct’23.</li><li>Calls that successfully achieved their target were Nestle India (~10%), Aptus Value Housing Finance (10%), and Equitas Small Finance Bank (10%).</li><li>ICICI Bank LtdAxis Alpha reported an astounding monthly strike rate of 80% in Oct’23.</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.

Our POW calls delivered an excellent Monthly strike rate of 84% in Oct’23.Calls that successfully achieved their target were Nestle India (~10%), Aptus Value Housing Finance (10%), and Equitas Small Finance Bank (10%).ICICI Bank LtdAxis Alpha reported an astounding monthly strike rate of 80% in Oct’23.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.

Axis Research Scorecard Report for Oct 2023

India

AU Small Finance Bank Limited operates as a commercial bank. The Bank offers financial products and services such as savings and current accounts, term deposits, debit cards, insurance, government banking, retail loans, and microfinance lending. AU Small Finance Bank serves customers in India.

AU Small Finance Bank Limited (AUBANK IN)

AU Small Finance Bank Limited (AUBANK IN)

AU Small Finance Bank Ltd. - Merger Synergies to Play-Out over Medium Term!

A key positive from the merger with Fincare is that it will allow AUSFB to become a pan-India player with a diversified portfolio

Axis Direct

AU Small Finance - Near-Term Headwinds on NIMs and Credit Costs to Persist!

Advances grew by 24/2% YoY/QoQ, with growth driven by Home Loans (51/8% YoY/QoQ) and Business Banking Segment (+59/11% YoY/QoQ)

Axis Direct

AU Small Finance Bank Ltd. - Margin Pressures & Elevated Opex to Hurt RoA!

Deposits grew by 27% on a YoY basis but stood flat on a QoQ basis. The focus during the quarter was on consuming excess liquidity, rather than...

Axis Direct

Leveraged Financials: Emerging Long-Tail Risks in Unsecured Credit

India’s heterogenous unsecured retail credit market (US$160bn, 3-year CAGR at ~23%) has been in the headlines ever since the RBI clamped down on...

HDFC Securities

Axis Research Scorecard Report for Oct 2023

Our POW calls delivered an excellent Monthly strike rate of 84% in Oct’23. Calls that successfully achieved their target were Nestle India (~10%),...

Axis Direct