Despite gloomy stock market mood, Equitas Small Finance Bank shares reached fresh highs. Purchase, sell, or hold?

 Despite gloomy stock market mood, Equitas Small Finance Bank shares reached fresh highs. Purchase, sell, or hold?

Equitas Small Finance Bank shares have been on the rise since the release of the Q2 2023 results on Thursday last week, according to the stock market today. The previous two sessions have seen record highs for the small finance bank share. However, according to stock market analysts, the stock may continue its upward path since it has been able to increase its CASA and growth quarter after quarter. Interestingly, despite negative stock market sentiment, Equitas shares have been rising to new highs.

According to Avinash Gorakshkar, Head of Investigation at Profitmart Securities, "Equitas Small Finance Bank has managed to improve advancement on a regular basis, which led to continuous rise in Equitas Small Finance Bank shares in last year," when asked why Equitas Small Finance Bank shares are so high. Apart from that, this tiny finance bank managed to report better CASA, which caught the attention of stock market bulls since the cost of financing increased after the high interest regime topped out in the previous quarter. From these perspectives, the recent increase in Equitas Small Finance Bank shares should be viewed.

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Target price for Equitas Small Finance Bank's shares

Sumeet Bagadia, Executive Director at Choice Broking, predicted that shares of Equitas Small Finance Bank will continue to rise: "Equitas Small Finance Bank shares are looking optimistic on chart. Those who already own this company are encouraged to raise their trailing stop loss to 95, and new entries are also suggested below 100 with a target price of 110 in the short term. However, when opening a new trade in the stock, one must keep their stop loss at $95.

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Q2 results for Equitas Small Finance Bank

In its July-September quarter results for the fiscal 2023–24 (Q2FY24) announcement, Equitas Small Finance Bank (SFB) reported an increase of 70.2% in net profit at 198 crore, up from 116.4 crore in the same time previous year. The private lender's net interest income (NIIs), which is the difference between interest received and interest paid, increased by 25% from the same quarter a year earlier to 765.6 crore during the second quarter of the current fiscal.

Price history of Equitas Small Finance Bank shares

Equitas Small Finance Bank shares increased from around $85 to $100 during the course of the last month, giving its stockholders a return of almost 15%. The share price of Equitas Small Finance Bank has increased over the last six months from around 70 to 100 per piece, giving investors a return of almost 40%. The Equitas share price has given its shareholders a return of almost 60% so far this year, but over the last year, it has doubled their money by giving a return of 105%.