Buy Allahabad Bank, target of Rs 130: Emkay Global

Emkay Global Financial Services has maintained its buy rating on Allahabad Bank with a target price of Rs 130 in its July 18, 2008 research report. "Allahabad Bank reported a net profit of Rs 934 million for Q1FY09, inline with our expectations. However, the NII at Rs 5.0 billion was well above our’s as well as market expectations. The better than expected NII performance was driven by better yield on investments and lower contraction in advances yield. The other income at Rs 1.1 billion was in line with expectations."

"At the current valuations, the stock is quoting at 2.4x FY10E EPS and 0.5x FY10E ABV. We maintain our BUY recommendation with price target of Rs 130. We believe that the valuations of the stock are attractive looking at average RoE of 16.8% over FY08-10E," says Emkay's research report.

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