Buy Capital First; target of Rs 635: Geojit BNP Paribas
Geojit BNP Paribas is bullish on Capital First has recommended buy rating on the stock with a target price of Rs 635 in its research report dated November 25, 2016.
FY17E & FY18E book value estimates have increased by 13% & 8% factoring the proposed Rs 340 cr preferential equity issue at Rs 702/share. CAPF is currently trading at one year forward Adj. P/B of 2.1x, 6% discount to last one year average. Factoring headwinds from de-monetisation on earnings, we reduce our valuation to 2.5x FY18E adjusted book value with a revised target price of Rs 635, while upgrade to Buy.
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