Feb 17, 2017 02:39 PM IST | Source: Moneycontrol.com
Hold PTC India; target of Rs 40: ICICI Direct
ICICI Direct recommended hold rating on PTC India with a target price of Rs 40 in its research report dated February 16, 2017.
ICICI Direct's research report on PTC India
PFS had zero NNPA and marginal GNPA till Q3FY15. However, NPA unexpectedly surged post Q4FY15 owing to pains in certain accounts. In Q1FY17, asset quality deteriorated, led by higher slippage from already restructured accounts, resulting in surge in GNPA ratio at 5.83% (3.4% QoQ).
Going ahead, we do not see any sharp asset quality deterioration at least in the near term. Therefore, we revise our target price at Rs 40 per share, valuing the stock at 1.1x FY18E ABV at Rs 36.4. We maintain our HOLD recommendation on the stock.
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