Indian Accounting Research Analyst, Trudence Capital Advisors

Nitin Mangal

Indian Accounting Research Analyst

Trudence Capital Advisors

Trudence Capital Advisors Private Limited is a SEBI-registered Research Analyst, holding SEBI registration number INH000015747. Our firm is dedicated to providing independent and unbiased research on Indian mid to large-cap companies. Trudence Capital is known for its counter-consensus views, with a focus on forensic research and on-ground primary investigations. Our research approach is thorough, involving detailed analysis of accounting practices and governance, alongside extensive channel checks.

Independent & Unbiased Research

Equity Capital Markets

Utkarsh Small Finance Bank / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/utkarsh-small-finance-bank-ltd" target="_blank" data-smartkarma-citation="entities:39909:1" rel="noopener">Utkarsh Small Finance Bank (1639303D IN)</a> IPO opens for subscription this week.</li>
<li>The company currently is fifth largest SFB in India and has demonstrated robust growth in loan portfolio, deposits and improved productivity in the last two years.</li>
<li>However, one must be cautious of the write offs worth INR 6 bn done in the last two years which benefitted the NPAs</li>
</ul>



Utkarsh Small Finance Bank (1639303D IN) IPO opens for subscription this week.
The company currently is fifth largest SFB in India and has demonstrated robust growth in loan portfolio, deposits and improved productivity in the last two years.
However, one must be cautious of the write offs worth INR 6 bn done in the last two years which benefitted the NPAs


Utkarsh Small Finance Bank IPO- Forensic Analysis

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.

Thematic (Sector/Industry)

<div><div><div><div><ul><li>Q1 is a seasonally weak quarter, despite which we expect banks under our coverage to continue delivering a strong credit growth of ~15-16% YoY in Q1FY24.</li><li>For banks, Credit growth moderation was a central topic of discussions in Q4FY23.</li><li>However, systemic data as published by the RBI (as of Jun’23) has a different story to tell. </li></ul></div></div></div></div><p><em>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.</em></p>

Q1 is a seasonally weak quarter, despite which we expect banks under our coverage to continue delivering a strong credit growth of ~15-16% YoY in Q1FY24.For banks, Credit growth moderation was a central topic of discussions in Q4FY23.However, systemic data as published by the RBI (as of Jun’23) has a different story to tell. 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.

Equity Bottom-Up

Equitas Small Finance Bank  / Equity Bottom-Up

<ul><li>EQSFB reported a strong operational performance registering a robust advances growth of 36/13% YoY/QoQ, driven by strong disbursement growth of 81/23% YoY/QoQ.</li><li>Advances growth was driven by healthy growth in key focus segments of MFI/Vehicle Finance/SBL/Housing which grew by 34/38/28/75% YoY.</li><li>Thus, driven by healthy advances growth and stable NIMs (~9.1%, flat YoY, +10bps QoQ), EQSFB’s NII grew by 28/9% YoY/QoQ.</li></ul><p><em>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.</em></p>

EQSFB reported a strong operational performance registering a robust advances growth of 36/13% YoY/QoQ, driven by strong disbursement growth of 81/23% YoY/QoQ.Advances growth was driven by healthy growth in key focus segments of MFI/Vehicle Finance/SBL/Housing which grew by 34/38/28/75% YoY.Thus, driven by healthy advances growth and stable NIMs (~9.1%, flat YoY, +10bps QoQ), EQSFB’s NII grew by 28/9% YoY/QoQ.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.

Equitas Small Finance Bank Ltd - Robust Quarter

<ul><li>In Q4FY23, EQSFB reported a robust advances growth of 36/13% YoY/QoQ, which stood ahead of the management’s guidance of 25-30%.</li><li>We expect the bank to sustain this growth momentum and clock an excellent credit growth of ~27% CAGR over FY23-25E.</li><li>The said growth will be primarily led by the Housing, SBL, Vehicle Finance and Used Cars segment.</li></ul><p><em>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.</em></p>

In Q4FY23, EQSFB reported a robust advances growth of 36/13% YoY/QoQ, which stood ahead of the management’s guidance of 25-30%.We expect the bank to sustain this growth momentum and clock an excellent credit growth of ~27% CAGR over FY23-25E.The said growth will be primarily led by the Housing, SBL, Vehicle Finance and Used Cars segment.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.

Pick of the Week - Equitas Small Finance Bank Ltd.

<div><div><div><div><ul><li>Q4FY23 earnings season was marked by weaker macro, rising interest rates, banking challenges in the US and European markets, and moderation in discretionary demand.</li><li>On the positive side, earning season was led by the sequential margin expansion on account of moderation in commodity prices and the uptick in credit growth.</li><li>The export-oriented themes, however, are likely to laggard. </li></ul></div></div></div></div><p><em>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.</em></p>

Q4FY23 earnings season was marked by weaker macro, rising interest rates, banking challenges in the US and European markets, and moderation in discretionary demand.On the positive side, earning season was led by the sequential margin expansion on account of moderation in commodity prices and the uptick in credit growth.The export-oriented themes, however, are likely to laggard. 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

Equitas Small Finance Bank Limited operates as a bank. The Bank offers savings accounts, fixed deposits, loans, debit and credit cards, investment, insurance, online services, and other related activities. Equitas Small Finance Bank serves clients in India.

Equitas Small Finance Bank  (EQUITASB IN)

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Equitas Small Finance Bank (EQUITASB IN)

Utkarsh Small Finance Bank IPO- Forensic Analysis

Utkarsh demonstrated robust growth in loan portfolio, deposits and improved productivity in the last two years. However one must be cautious of the...

Nitin Mangal

BFSI Q1FY24 - Earnings Preview

Q1 is a seasonally weak quarter, despite which we expect banks under our coverage to continue delivering a strong credit growth of ~15-16% YoY in...

Axis Direct

Equitas Small Finance Bank Ltd - Robust Quarter

EQSFB reported a strong operational performance registering a robust advances growth of 36/13% YoY/QoQ, driven by strong disbursement growth of 81...

Axis Direct

Pick of the Week - Equitas Small Finance Bank Ltd.

In Q4FY23, EQSFB reported a robust advances growth of 36/13% YoY/QoQ, which stood ahead of the management’s guidance of 25-30%.

Axis Direct

Q4FY23 - Consolidated Earnings Preview

Q4FY23 earnings season was marked by weaker macro, rising interest rates, banking challenges in the US and European markets, and moderation in...

Axis Direct

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