ICICI Securities Upgrades Equitas Small Finance Bank to Hold with Target of ₹57

Status: Pending

Age: New (14/08/2025)

TRACK

Brokerage

ICICI Securities

Analyst

Brokerage Team

Position

Bullish

Start Date

14/08/2025

Horizon

Mid Term

Target Price and Expected Returns

Start Price

Target Price

₹57

Expected Returns

Summary

ICICI Securities has recommended a hold rating on Equitas Small Finance Bank with a target price of ₹57.

ICICI Securities's justification for Equitas Small Finance Bank target price prediction

Equitas reported its first net loss in 2008 at ~INR 2bn in Q1FY26.
The bank's credit cost is elevated and the high-yielding MFI portfolio declined by >20% QoQ.
Despite this, management plans to focus on scaling the non-MFI book.
The downgrade is based on a revised target price of INR 57, 1x on Sep’26E.
There is an expectation for higher credit costs in FY26 due to up-front provisioning.

ICICI Securities downgrades Equitas Small Finance Bank to HOLD with a revised TP of INR 57, based on subdued profitability in the near term.

Sources:

https://www.moneycontrol.com/news/business/stocks/equitas-small-finance-bank-target-of-rs-57-icici-securities-13422587.html

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