AU Small Finance Bank share price hits new 52-week high; what's next target?

AU Small Finance Bank share price rose nearly 2% on Thursday, reaching a new 52-week high. Since the beginning of June, AU Small Finance Bank share price has been experiencing a bull run, where AU Small Finance Bank shares have hit fresh 52-week highs five times.

Anshul Jain, Head of Research at Lakshmishree Investments said that following a fresh 52-week high on 6th June, the stock entered a tight 6-day flag formation, which is now resolving to the upside. Both the consolidation and breakout volumes have remained supportive, suggesting healthy participation. The technical setup indicates strength, and a breakout above the recent flag pattern projects a target of ₹875 in the near term as momentum builds further.

Shares of AU Small Finance Bank reached record levels on June 18, 2025, June 9, 2025, January 4, 2024, July 7, 2023, and May 30, 2023.

Ruchit Jain, VP - Equity Technical Research, Motilal Oswal Financial Services Ltd, added that the broader trend for the stock has been positive as it has been forming Higher Top Higher Bottom structure and has been an outperformed since last few weeks. Investors can continue to ride the trend and look for buying opportunity on any declines.

AU Small Finance Bank share price today opened at ₹799.35 apiece on the BSE, the stock touched an intraday high of ₹808 per share and an intraday low of ₹795.05 apiece.

According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, the mid cap private banks have shown tremendous strength in last few sessions, and AU Small Finance Bank as well has outperformed. AU Small Finance Bank share price have now reached around it's all time high level and momentum is likely to continue in near term, ₹830 is seen as next resistance whereas ₹780 is seen as immediate support.

Should you buy or sell?

Recently, brokerage firm Mirae Asset Sharekhan has reiterated its 'buy' recommendation for the stock with an updated price target of ₹900. In its report, the brokerage noted the consistent growth and enhanced profitability outlook.

Additionally, the brokerage noted in its analysis that overall, FY25 has been challenging for the bank due to elevated interest rates, restricted liquidity, and significant pressure in unsecured loans. Profitability is anticipated to improve starting in H2FY26 as the adverse factors on margins and asset quality diminish.

The bank is fairly optimistic that enhancements will be primarily observed in H2FY26 driven by reduced policy rates and a return to normal credit costs. The growth guidance remains unchanged at 20-25%. Return on Assets (RoA) is expected to increase by 20-30 basis points from FY25 to FY27E, fueled by lower credit costs and slightly higher Net Interest Margins (NIMs).

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.