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

Financial Services · IN · Market cap ₹801B (≈ $8.5B) · ISIN INE949L01017

What is AU Small Finance Bank Limited really worth?

AS AU Small Finance Bank Limited AUBANK · BSE
Price₹1,067
Fair Value₹415.88
Upside−61.0%
Quality43/100

Below-average quality, and trading another 157% above our fair value of ₹415.88.

As of Aug 19, 2026, the fair value of AU Small Finance Bank Limited is ₹415.88 per share against a price of ₹1,067, so the fair value sits 61% below the price. A model estimate blended from multiple valuation models, recalculated regularly.

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Strengths

Highly profitable · 21.4% net margin
Moderate debt · generates free cash flow
Wide moat 66/100

Risks

!Mixed Growth (revenue 5y +25.9 %/yr)
!Evidence only medium, so the estimate is less certain
Evidence: Medium Range ₹311.91 – ₹519.85

Fair value as of: Aug 19, 2026

From 4 valuation models · updated 18 days ago

Share price +1.9% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (₹519.85). The favourable scenario is already priced in.
  • Weak quality (43/100) 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.

Price vs Fair Value (5 years)

₹1,125 ₹454.95 Fair Value ₹415.88 Apr 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 19, 2026.

How to read this chart

60‑month range ₹454.95 – ₹1,125 · fair‑value band ₹311.91 – ₹519.85 · the ₹1,067 price screens above the ₹415.88 fair value. Dashed = 300-day average. As of Aug 19, 2026.

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Analysis

AU Small Finance Bank Limited (AUBANK) currently trades at ₹1,067, while our model-based Fair Value estimate is ₹415.88, implying the stock looks roughly 156.5% overvalued today. The Quality Score stands at 43/100 (below-average quality), in the Financial Services sector. Bull case: the Multiples group reads highest at a median of ₹373.33 per share, and 0 of the 4 models we run sit above the ₹1,067 price. Bear case: the Asset-Based group reads lowest at ₹178.67, and 4 of the 4 models stay below the price. Evidence for this calculation is medium.

Revenue grew 29.8% year over year. It earns a return on equity of 12.7%. Net debt stands at ₹53.5B. The stock trades on a trailing P/E of 28.3. Fundamentals as of Aug 19, 2026

Our scenario range runs from ₹311.91 (bear case) to ₹519.85 (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 3% 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 −10% fair-value upside, at −61%, AUBANK screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly ₹25.75 per share, which is 6.4 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income best evidence ₹258.98 ₹330.85 ₹893.77 67
P/E Multiple ₹343.82 ₹458.43 ₹573.03 63
P/B Multiple ₹280.00 ₹373.33 ₹466.67 55
All 4 models by family
Multiples
P/E Multiple ₹343.82 ₹458.43 ₹573.03 63
P/B Multiple ₹280.00 ₹373.33 ₹466.67 55
Asset-Based
NCAV (Graham) ₹133.33 ₹178.67 ₹266.67 54
Economic Profit
Residual Income best evidence ₹258.98 ₹330.85 ₹893.77 67

Widest divergence: Multiples (₹373.33) versus Asset-Based (₹178.67). Highest evidence: Residual Income (67).

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Key figures & financial health

P/E ratio 28.3
P/S ratio 6.18 P/E × margin
EPS (TTM) ₹37.74 price ÷ EPS = P/E 28.3
Net margin 21.8% FY2025
Return on equity 12.7% TTM
Return on assets 1.4% TTM
More key figures
Profitability
Operating margin 35.3% TTM
Growth
Revenue growth (YoY) +29.8% 3y avg +30.3%
EPS growth (YoY) +35.1%
Balance sheet & cash flow
Free cash flow ₹10.2B FY2025
Net debt ₹53.5B FY2025 · ≈ 5.2 yrs of FCF

Figures from reported company fundamentals · as of Aug 19, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 43/100

Of which business quality 38 · Market factors (momentum, volatility) 77

Profitability 42
Margins and returns on capital today
Quality Growth 55
Are margins and returns improving?
Cashflow 37
Earnings quality: real cash, not paper profit
Fin. Strength 15
Balance sheet, leverage, solvency risk
Investment 25
Disciplined investing over empire-building
Low Volatility 84
Calm price path (market factor)
Momentum 67
Price trend over the last 3–12 months (market factor)
52W Momentum 86
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

AU Small Finance Bank Limited engages in the provision of 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 engages in the provision of 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, RERA, and recurring deposit accounts; and debit and credit cards, as well as 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, gold, 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 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. Further, the company provides government banking services to central government, state governments, central and state public sector undertakings, boards, defense, urban local bodies, and other government departments. It operates through its bank branches, correspondents banking outlets, business correspondents, and ATMs. 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

FY2021 – FY2025 · reported fiscal years

AU Small Finance Bank Limited reported revenue of ₹121B in FY2025 versus ₹42.3B in FY2021, a compound +30.0%/yr. Reported net income was ₹26.4B in FY2025, compounding +23.7%/yr from FY2021.

Growth Quality 91/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
₹121B
Latest YoY
+14.7%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+30.3%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+25.9%
Avg. revenue growth/yr (9Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+33.2%
Value creation/yr (5Y, in INR) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
≈ +13.5% (approximate, leans on 2025) · in INR
Earnings growth per share plus dividend yield: the value created per share and year.
Earnings growth per share+13.5%
Dividend yield0.0%
Trend Two data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.5Y 13.5% vs 10Y 12.1%, steady
Worst earnings drop22% (2018) · in INR
⚠ Rate leans on 2025: that final year sits 54% above its own trend (e.g. a one-off disposal gain) and could not be adjusted
Revenue +30.0%/yr
FY21 ₹42.3B
FY22 ₹54.6B
FY23 ₹68.5B
FY24 ₹105B
FY25 ₹121B
Net income +23.7%/yr
FY21 ₹11.3B
FY22 ₹14.3B
FY23 ₹15.3B
FY24 ₹21.1B
FY25 ₹26.4B

AUBANK screens 157% overvalued. Compare with DBS Group →

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

Peer Group

Banks - Regional · 1070 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 41 · Bottom 25%
Fair Value upside −61% · Bottom 25%
Return on equity (TTM) 13% · Above median
Return on assets 1% · Top 25%
Net margin (TTM) 21% · Below median
Operating margin (TTM) 35% · Below median
Revenue growth 30% · 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) 28.3× · Pricier than 75% of peers
P/FCF 0.8× · Cheaper than median

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

Similar stocks

10 more Banks - Regional stocks, each showing price versus our Fair Value estimate (as of Aug 19, 2026).

Stock Price Fair Value vs Fair Value
DBS Group D05 75.65 SGD 40.48 SGD −46%
China Merchants Bank Co 3968 HK$47.96 HK$76.51 +60%
Intesa Sanpaolo S.p.A ISP €6.78 €5.66 −17%
HDFC Bank Limited HDB $23.18 $24.12 +4%
BNP Paribas SA BNP €104.54 €144.64 +38%
UniCredit S.p.A UCG €84.71 €77.62 −8%
Mizuho Financial Group MFG $10.74 $9.69 −10%
ICICI Bank Limited ICICIBANK ₹1,423 ₹835.21 −41%
Oversea-Chinese Banking Corporation O39 31.07 SGD 19.80 SGD −36%
CaixaBank, S.A CABK €13.52 €8.85 −35%

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Frequently asked questions

Is AU Small Finance Bank Limited (AUBANK) overvalued or undervalued?
As of Aug 19, 2026, our model estimates a fair value of ₹415.88 versus a price of ₹1,067, about −61% upside (overvalued).
What is the fair value of AUBANK?
Our model-based fair value for AU Small Finance Bank Limited is ₹415.88 (as of Aug 19, 2026), built from audited fundamentals. The current price: ₹1,067.
What is the quality score of AUBANK?
AU Small Finance Bank Limited has a Quality Score of 43/100. 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 price target for AU Small Finance Bank Limited (AUBANK)?
Our model-based price target is the fair value of ₹415.88 (as of Aug 19, 2026) from 4 valuation models. Cautious scenario ₹311.91, optimistic scenario ₹519.85. It is a calculation from audited fundamentals, not an analyst target.
What is the AU Small Finance Bank Limited stock forecast for 2026?
Our models put fair value at ₹415.88, about −61% upside versus a price of ₹1,067 (overvalued). Cautious scenario ₹311.91, optimistic scenario ₹519.85. The calculation is refreshed regularly with new filings.
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.
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