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AU Small Finance Bank Limited (AUBANK) Fair Value & Analysis

Financial Services · IN · Market cap ₹779B

AS AU Small Finance Bank Limited AUBANK · NSE
Price₹1,067
Fair Value₹458.82
Upside-57.0%
Quality36/100
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Mixed Growth
Highly profitable · 21.4% net margin
Moderate debt · generates free cash flow
Trails peers (4/11)
Wide moat 67/100
Evidence: High Range ₹344.12 – ₹573.53 Share as image

Fair value as of: Jul 16, 2026

From 6 valuation models · updated 24 days ago

Share price +2.7% over the past month.

Below-average quality, and screening another 57% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (₹573.53). The favourable scenario is already priced in.
  • Weak quality (36/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (5 years)

₹1,088 ₹455.47 Fair Value ₹458.82 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range ₹455.47 – ₹1,088 · fair‑value band ₹344.12 – ₹573.53 · the ₹1,067 price screens above the ₹458.82 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 16, 2026.

Full chart & analysis →

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Analysis

AU Small Finance Bank Limited (AUBANK) currently trades at ₹1,067, while our model-based Fair Value estimate is ₹458.82, implying the stock looks roughly 57.0% overvalued today. The Quality Score stands at 36/100 (below-average quality), in the Financial Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, AU Small Finance Bank Limited generated revenue of ₹10.6B at a net margin of 21.4%. Revenue grew 37.1% year over year. It earns a return on equity of 12.7%. Net debt stands at ₹53.5B. Fundamentals as of Jul 16, 2026

Our scenario range runs from ₹344.12 (bear case) to ₹573.53 (bull case); at ₹1,067, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 1% below its 52-week high and 56% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 42% fair-value upside, at -57%, AUBANK screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Residual Income ₹258.86 ₹343.34 ₹1,137 76
Gordon GGM ₹9.58 ₹20.91 ₹35.18 70
P/E Multiple ₹344.12 ₹458.82 ₹573.53 63
All 6 models by family
Dividend Discount
Gordon GGM ₹9.58 ₹20.91 ₹35.18 70
DDM Multi-Stage ₹9.58 ₹17.13 ₹21.79 61
Multiples
P/E Multiple ₹344.12 ₹458.82 ₹573.53 63
P/B Multiple ₹280.24 ₹373.66 ₹467.07 55
Asset-Based
NCAV (Graham) ₹133.45 ₹178.82 ₹266.90 50
Economic Profit
Residual Income ₹258.86 ₹343.34 ₹1,137 76

Widest divergence: Multiples (₹373.66) versus Dividend Discount (₹17.13). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) ₹10.6B
Revenue growth (YoY) +37.1%
Net margin 21.4%
Return on equity 12.7%
Free cash flow ₹10.2B FY2026
P/E ratio 29.7
More key figures
Operating margin 35.6%
EPS (TTM) ₹34.99
EPS growth (YoY) +62.6%
Net debt ₹53.5B FY2026

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 36/100

Of which business quality 33 · Market factors (momentum, volatility) 75

Profitability 29
Margins and returns on capital today
Quality Growth 46
Are margins and returns improving?
Cashflow 30
Earnings quality: real cash, not paper profit
Fin. Strength 15
Balance sheet, leverage, solvency risk
Investment 30
Disciplined investing over empire-building
Low Volatility 84
Calm price path (market factor)
Momentum 61
Price trend over the last 3–12 months (market factor)
52W Momentum 87
Distance to the 52-week high (market factor)
Net Issuance 59
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

AU Small Finance Bank Limited offers various banking and financial services in India. The company operates through Treasury, Retail Banking, Wholesale Banking, and Other Banking Operations segments.

Full company description

AU Small Finance Bank Limited offers various banking and financial services in India. The company operates through Treasury, Retail Banking, Wholesale Banking, and Other Banking Operations segments. It provides saving, salary, term, current, escrow, trade, fixed deposit overdraft, nodal and RERA, and fixed and recurring deposit accounts; foreign currency non-resident deposit; debit, credit, and prepaid cards; and safe deposit locker services. The company also offers vehicle loans for cars, two-wheelers, tractors, and commercial vehicles, as well as construction equipment; personal, home, commercial property, gold, micro business, agriculture, working capital, and construction loans; and financial institutional lending services. In addition, it provides life, health, general, fire, SME, and motor insurance; mutual funds, Atal pension scheme, and national pension system; overdraft, cash credit, bank guarantee, and letters of credit; and internet and mobile banking, collection and receivables, and payment and other merchant payment services, as well as ATM services. Further, the company offers digital banking services. Additionally, it provides government banking services to central government, state governments, central and state public sector undertakings, boards, defense, urban local bodies, and other government departments. The company operates through its bank branches, correspondents banking outlets, and business correspondents. It serves individuals, senior citizens, SMEs, NRIs, Gen Z digital natives, professionals, government institutions, corporate, partnerships, associations, and trusts. The company was formerly known as AU Financiers (India) Limited and changed its name to AU Small Finance Bank Limited in May 2017. AU Small Finance Bank Limited was incorporated in 1996 and is headquartered in Jaipur, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

AU Small Finance Bank Limited reported revenue of ₹216B in FY2026 versus ₹69.2B in FY2022, a compound +33.0%/yr. Reported net income was ₹26.4B in FY2026, compounding +23.7%/yr from FY2022.

Growth Quality 86/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2026)
₹216B
Latest YoY
+16.2%
Avg. growth/yr (3Y)
+32.7%
Avg. growth/yr (5Y)
+27.7%
Avg. growth/yr (13Y)
+35.9%
Revenue +33.0%/yr
FY22 ₹69.2B
FY23 ₹92.4B
FY24 ₹123B
FY25 ₹186B
FY26 ₹216B
Net income +23.7%/yr
FY22 ₹11.3B
FY23 ₹14.3B
FY24 ₹15.3B
FY25 ₹21.1B
FY26 ₹26.4B

AUBANK screens 57% overvalued. Compare with PT Bank Central Asia Tbk →

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Cite: Fair Value Calculator (2026). "AU Small Finance Bank Limited Fair Value". https://www.fairvalue-calculator.com/stock/AUBANK

Peer Group

Banks - Regional · 1083 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 36 · Bottom 25%
Fair Value upside −57% · Bottom 25%
Return on equity (TTM) 13% · Above median
Return on assets 1% · Top 25%
Net margin (TTM) 21% · Below median
Operating margin (TTM) 36% · Below median
Revenue growth 37% · Top 25%
Dividend yield (TTM) 0.0% · Bottom 25%
Debt / equity 0.58× · Higher than median

Valuation Multiples vs Banks - Regional median · lower = cheaper

P/E (TTM) 29.7× · Pricier than 75% of peers
P/FCF 0.8× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 39
FUTURE 100 · sector 44
PAST 51 · sector 41
HEALTH 71 · sector 85
DIVIDEND 0 · sector 49

VALUE 0: the price sits above our fair-value range.

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Banks - Regional stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Stock Price Fair Value vs Fair Value
PT Bank Central Asia Tbk BBCA 6,175 IDR 6,087 IDR -1%
KB Financial Group 105560 184,400 KRW 213,797 KRW +16%
PT Bank Rakyat Indonesia (Persero) Tbk BBRI 2,970 IDR 4,891 IDR +65%
PT Bank Mandiri (Persero) Tbk BMRI 4,310 IDR 7,841 IDR +82%
Banco Bradesco S.A BBD 5,120 ARS 10,240 ARS +100%
Shinhan Financial Group 055550 107,900 KRW 137,259 KRW +27%
Hana Financial Group 086790 136,800 KRW 193,969 KRW +42%
Lloyds Banking Group LYG 4,138 ARS 8,275 ARS +100%
Banco de Chile, CHILE 193.10 CLP 152.55 CLP -21%
Joint Stock Commercial Bank for Foreign Trade of Vietnam, VCB 59,400 VND 84,201 VND +42%

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Frequently asked questions

Is AU Small Finance Bank Limited (AUBANK) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of ₹458.82 versus a price of ₹1,067, about −57% (overvalued).
What is the fair value of AUBANK?
Our model-based fair value for AU Small Finance Bank Limited is ₹458.82 (as of Jul 16, 2026), built from audited fundamentals. The current price is ₹1,067.
What is the quality score of AUBANK?
AU Small Finance Bank Limited has a Quality Score of 36/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of AU Small Finance Bank Limited (AUBANK)?
AU Small Finance Bank Limited reported trailing-twelve-month revenue of about ₹10.6B (latest available figure, as of Jul 16, 2026).
What is the net profit margin of AUBANK?
The net profit margin of AU Small Finance Bank Limited is about 21.4%, meaning it keeps roughly 21.4% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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