AU SFB is expensive. Few points to mention about AU as compared to Equitas:
- AU ROA is 1.70% and ROE id 13.50%.; Equitas ROA is 2.10% and ROE is 14.54%
- AU Yield on assets is 13.80% whereas Equitas is at 17-18% since Equitas SBL Loans have a higher ROI as compared to AU SBL plus equitas has some microfinance also. SBL loans is a huge opportunity and equitas has managed the risks very well in Covid which reflects their strength in the segment as compared to peers.
- AU is guiding at 5.5% NIM whereas equitas after repricing of deposits is guiding at 8.50% NIM.
- AU P/B TTM is 4.2 times and Equitas is at 1.89 times. Both are predicting similar 25% plus growth.
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