Equitas Small Finance Bank Ltd. (EQUITASBNK) AI Stock Analysis

• Market Cap: ₹76.39B
• Dividend Yield: 1.63%
• Average Volume (3M): 236.91K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.82
• Revenue Growth: 10.02%
• EPS Growth: -120.18%
• Country: IN
• Employees: 22,854
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.20
• Shares Outstanding: 1,140,719,800
• 10 Day Avg. Volume: 329,486
• 30 Day Avg. Volume: 236,913
• PEG Ratio: -0.54
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 0.90
• P/FCF Ratio: 3.83
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: ₹67.00 ▲(0.04% Upside)

The overall stock score of 56 reflects significant challenges in financial performance, particularly with declining revenue and profitability. While technical analysis shows positive momentum, the negative P/E ratio raises concerns about valuation. The lack of earnings call and corporate events data limits further insights.

Positive Factors

Stable Leverage Position

A stable leverage position with a moderate debt-to-equity ratio enhances the bank's financial stability, allowing it to manage debt effectively and focus on growth opportunities.

Efficient Cash Generation

Efficient cash generation supports the bank's ability to reinvest in growth initiatives, manage operational costs, and maintain liquidity, which is crucial for long-term sustainability.

Strong Gross Profit Margin

A strong gross profit margin indicates effective cost management and pricing strategies, providing a buffer against market fluctuations and supporting profitability.

Negative Factors

Declining Revenue Trend

A declining revenue trend poses challenges to maintaining financial health, potentially impacting the bank's ability to invest in growth and compete effectively in the market.

Reduced Profitability

Reduced profitability limits the bank's ability to generate returns for shareholders and reinvest in business expansion, affecting long-term growth potential.

Volatility in Cash Flow

Volatility in cash flow can hinder the bank's capacity to manage its operations smoothly, impacting its ability to fund new projects and meet financial obligations.

Equitas Small Finance Bank Ltd. Business Overview & Revenue Model

Company Description

Equitas Small Finance Bank Limited provides various banking products and services to for individuals and corporates, as well as micro, small, and medium enterprises. The company operates through Treasury, Corporate / Wholesale Banking, Retail Banking, and Other Banking Operations segments. It offers fixed deposit products; and savings, salary, business, current, and TASC accounts. The company also provides loans against property; gold, home, used car, business, and MSME loans; vehicle finance, merchant overdraft, MSME loans monitoring services; overdraft against deposits; financing products for agri business; investment services; general, life, and health insurances; pension schemes; payments and collection solutions; retail forex services; fund transfer services; and debit cards. In addition, it provides online, mobile, and doorstep banking services. It has 869 banking outlets and 339 ATMs in India. The company was formerly known as Equitas Finance Limited. Equitas Small Finance Bank Limited was incorporated in 1993 and is based in Chennai, India. Equitas Small Finance Bank Limited is a subsidiary of Equitas Holdings Limited.

How the Company Makes Money

Equitas Small Finance Bank generates revenue primarily through the interest income earned from its lending activities. The bank offers various types of loans, including microfinance loans, small business loans, and personal loans, which typically carry higher interest rates compared to traditional banking products. Additionally, Equitas earns interest from its investment portfolio and fees from services such as account maintenance, transaction processing, and other banking services. The bank also benefits from its growing customer base and the volume of deposits, which provide a low-cost source of funds for its lending operations. Strategic partnerships with fintech companies and other financial institutions further enhance its service offerings and customer reach, contributing positively to its earnings.

Equitas Small Finance Bank Ltd. Financial Statement Overview

Summary

Equitas Small Finance Bank Ltd. faces challenges with declining revenue and profitability, as indicated by the income statement. The balance sheet shows a stable leverage position, but the return on equity has decreased, reflecting lower profitability. Cash flow analysis highlights volatility, although cash generation relative to net income remains efficient. The company needs to address revenue growth and profitability to improve its financial health.

Income Statement

The income statement shows a declining revenue trend with a negative growth rate of -13.15% in the latest year, indicating potential challenges in maintaining revenue streams. The net profit margin has significantly decreased from 21.30% to 3.53%, reflecting reduced profitability. The gross profit margin remains strong at 100%, but the EBIT and EBITDA margins are not available for the latest period, which limits a comprehensive analysis of operational efficiency.

Balance Sheet

The balance sheet indicates a moderate debt-to-equity ratio of 0.35, suggesting a stable leverage position. Return on equity has decreased to 2.42%, indicating lower profitability for shareholders. The equity ratio is not explicitly calculated, but the company appears to have a solid equity base relative to its assets, which is a positive sign for financial stability.

Cash Flow

The cash flow statement reveals a concerning trend with a significant decrease in operating cash flow. However, the free cash flow to net income ratio remains strong at 87.37%, indicating efficient cash generation relative to net income. The free cash flow growth rate is not calculable due to previous negative values, which suggests volatility in cash flow generation.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	66.05B	71.26B	61.58B	46.66B	39.34B	35.94B
Gross Profit	41.34B	40.66B	37.52B	30.48B	25.13B	21.97B
EBITDA	-1.34B	3.47B	11.98B	8.53B	4.53B	5.88B
Net Income	-1.02B	1.47B	7.99B	5.74B	2.81B	3.84B
Balance Sheet
Total Assets	0.00	528.36B	453.04B	349.58B	269.52B	247.15B
Cash, Cash Equivalents and Short-Term Investments	0.00	55.36B	35.79B	12.44B	21.33B	5.94B
Total Debt	0.00	21.37B	17.88B	73.89B	45.48B	85.37B
Total Liabilities	-60.73B	467.63B	393.35B	298.00B	227.06B	213.19B
Stockholders Equity	60.73B	60.73B	59.69B	51.58B	42.46B	33.96B
Cash Flow
Free Cash Flow	0.00	16.92B	34.70B	-12.63B	667.13M	19.94B
Operating Cash Flow	0.00	19.37B	38.34B	-9.98B	1.59B	20.44B
Investing Cash Flow	0.00	-2.39B	-3.60B	-2.61B	-890.90M	-428.05M
Financing Cash Flow	0.00	2.59B	-12.10B	601.13M	-13.17B	-11.54B

Equitas Small Finance Bank Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 66.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:EQUITASBNK, the sentiment is Positive. The current price of 66.97 is above the 20-day moving average (MA) of 62.22, above the 50-day MA of 61.86, and above the 200-day MA of 60.78, indicating a bullish trend. The MACD of 1.58 indicates Negative momentum. The RSI at 71.20 is Negative, neither overbought nor oversold. The STOCH value of 89.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:EQUITASBNK.

Equitas Small Finance Bank Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CARERATING	75 Outperform	₹48.68B	31.76	―	1.23%	19.50%	33.27%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CSBBANK	65 Neutral	₹87.80B	14.14	―	―	32.90%	12.28%
UJJIVANSFB	60 Neutral	₹115.05B	27.55	―	2.82%	6.15%	-64.12%
SURYODAY	57 Neutral	₹15.09B	23.14	―	―	―	―
EQUITASBNK	56 Neutral	₹76.39B	-83.79	―	1.63%	10.02%	-120.18%
UTKARSHBNK	45 Neutral	₹25.46B	-2.47	―	2.82%	2.35%	-261.81%

Equitas Small Finance Bank Ltd. Corporate Events

Equitas Small Finance Bank’s Credit Ratings Affirmed by India Ratings

Equitas Small Finance Bank Limited has announced the affirmation of its credit ratings by India Ratings & Research Private Limited. The ratings, which include an issuer rating of IND AA-/Stable and a certificate of deposit rating of IND A1+, reflect the bank’s stable financial position and are crucial for maintaining investor confidence and supporting future financial operations.