The research house has set a target of Rs 725 per share for the stock, implying 19.3 percent potential upside over Thursday’s closing price.
Morgan Stanley expects the non-banking finance company to report strong growth and high profitability going ahead.
With effect from November 1, 2017, AU Small Finance Bank is a ‘Scheduled Bank’.
Meanwhile, its profit for July-September quarter increased to Rs 68 crore from Rs 62 crore and net interest income rose 12 percent to Rs 220 crore on year-on-year basis.
At 14:53 hours IST, the stock price was quoting at Rs 614.65, up Rs 6.85, or 1.13 percent on the BSE