10 Mar 2026 | 5 Mins Read
Motilal Oswal recommends buying AU Small Finance Bank
Flipitmoney
AU Small Finance Bank has successfully transitioned into a diversified banking franchise, set to achieve universal bank status. The bank leads in the SFB space with 2x the market capitalization of peers. Estimated 24% loan CAGR over FY26-28 drives 36% earnings CAGR, enhancing profitability. We reiterate a BUY rating with a target price of INR1,250 (3.7x).