Buy Bank of Maharashtra, target Rs 46: Sushil Finance

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Sushil Finance has recommended a buy rating on Bank of Maharashtra , with price target of Rs 46, in its report dated July 16, 2009.

"Bank of Maharashtra (BOM) has high CASA share of 35.7% will help the bank in maintaining its low funding cost (5.9% in FY09). Strong business growth, high CASA ( 36%), decent asset quality, sustainable ROE of about 16%, strong network base, comfortable CAR of 12% with finance ministry promising to infuse the required capital in BOM, scope for growing advances due to low Credit deposit ratio and decent dividend yield of +5% are the other key positives for the bank. Stock is trading at a valuation of 0.7x FY11E ABV and 3.3x FY11E Earnings. Buy with price target of Rs 46," says Sushil Finance's report.

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