Moneycontrol
Apr 19, 2017 01:58 PM IST | Source: Moneycontrol.com

Hold DCB Bank; target of Rs 165: ICICI Direct

ICICI Direct recommended hold rating on DCB Bank with a target price of Rs 165 in its research report dated April 17, 2017.

Hold DCB Bank; target of Rs 165: ICICI Direct

ICICI Direct's research report on DCB Bank


With a view to laying the foundation for a future endeavour and counter competition from MFI who have been awarded small bank licences, DCB in Q2FY16 announced a shift in its strategy from stable growth to aggressive expansion.


Outlook


RoA is expected to improve to 1% by FY19E. The stock has witnessed a sharp rally of 60% since January 2017. We revise our target price higher to Rs 165 (Rs 150 earlier) assigning multiple of 1.8x FY19E ABV of Rs 89. We maintain our HOLD rating on the stock.


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