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

• Market Cap: ₹65.59B
• Dividend Yield: 1.74%
• Average Volume (3M): 231.77K
• Price to Earnings (P/E): 44.9
• Beta (1Y): 0.97
• Revenue Growth: 13.47%
• EPS Growth: -115.98%
• Country: IN
• Employees: 22,854
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): -2.00
• Shares Outstanding: 1,140,504,300
• 10 Day Avg. Volume: 177,474
• 30 Day Avg. Volume: 231,770
• 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: ₹57.00
• Price Target Upside: -0.89% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: ₹59.00 ▲(2.59% Upside)

The overall stock score of 55 reflects significant challenges in financial performance, with declining revenue and profitability. Technical analysis shows mixed signals with short-term bullish momentum but longer-term bearish trends. Valuation is concerning due to negative earnings, despite a moderate dividend yield. The company needs to improve its financial health and address profitability issues to enhance its stock performance.

Equitas Small Finance Bank Ltd. Business Overview & Revenue Model

Company Description

Equitas Small Finance Bank Ltd. (EQUITASBNK) is a prominent financial institution in India that focuses on providing banking services primarily to underserved and unbanked segments of the population. Established as a small finance bank, it offers a wide range of products including savings accounts, fixed deposits, loans, and various digital banking solutions. The bank aims to enhance financial inclusion by catering to the needs of small businesses, micro-entrepreneurs, and low-income individuals across urban and rural areas.

How the Company Makes Money

Equitas Small Finance Bank generates revenue primarily through its interest income from loans and advances. The bank provides various types of loans, including microfinance, personal loans, business loans, and vehicle loans, which typically carry higher interest rates compared to traditional banking products. Additionally, the bank earns income from fees associated with its banking services, such as account maintenance fees, transaction fees, and charges for other services. Moreover, it also generates revenue through investments in government securities and other financial instruments. The bank's partnerships with fintech companies and other financial institutions help enhance its product offerings and reach, contributing to its revenue streams. Other factors contributing to its earnings include its strong focus on customer service and expanding its branch network to increase its customer base.

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	58.87B	72.23B	62.85B	46.66B	39.34B	22.00B
Gross Profit	41.34B	41.63B	38.78B	32.14B	25.76B	22.16B
EBITDA	-1.34B	3.47B	11.98B	8.53B	4.53B	5.27B
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	39.34B	-12.63B	667.08M	19.94B
Operating Cash Flow	0.00	19.37B	42.98B	-9.98B	1.59B	20.44B
Investing Cash Flow	0.00	-2.39B	-4.22B	-2.61B	-890.90M	-428.05M
Financing Cash Flow	0.00	2.59B	-16.12B	601.13M	-13.17B	-11.54B

Equitas Small Finance Bank Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 57.51
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:EQUITASBNK, the sentiment is Neutral. The current price of 57.51 is above the 20-day moving average (MA) of 56.53, above the 50-day MA of 55.45, and below the 200-day MA of 61.88, indicating a neutral trend. The MACD of 0.62 indicates Negative momentum. The RSI at 55.12 is Neutral, neither overbought nor oversold. The STOCH value of 53.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CARERATING	66 Neutral	₹45.67B	32.02	―	1.20%	21.24%	36.98%
UJJIVANSFB	58 Neutral	₹93.80B	17.73	―	3.07%	8.80%	-57.82%
EQUITASBNK	55 Neutral	₹65.59B	44.89	―	1.74%	13.47%	-115.98%
UTKARSHBNK	46 Neutral	₹24.02B	101.76	―	2.30%	12.40%	-166.78%