Buy IDBI Bank; target of Rs 131: Magnum

“IDBI Bank, net profit up 23.15% to Rs. 2,032 Crore (previous year Rs. 1,650 Crore). NII grew by 6.46% to Rs. 4,545 Crore (previous year Rs. 4,269 Crore). Business up 16.02% to Rs. 3,91,651 Crore (previous year Rs. 3,37,584 Crore). Deposits increased by 16.63% to Rs. 2,10,493 Crore (previous year Rs. 1,80,486 Crore). Advances up by 15.32% to Rs.1,81,158 Crore (previous year Rs. 1,57,098 Crore). Total assets grew by 14.78% to Rs. 2,90,837 Crore (Previous year Rs. 2,53,377 Crore)”

“The bank’s assets quality is still the matter of concern, the NNPA and GNPA of the bank increased by 55 and 73bps YoY to 1.61% and 2.49% respectively. Capital Adequacy Ratio (CAR) stood at 14.58%. The Board of Directors has declared Final dividend of Rs 1.50 per share for the financial year 2011-12. At CMP Rs 103 the stock is trading at a P/ABV of 0.8x and 0.7x for FY13E and FY14E respectively. We have valued the bank at 0.9x on FY14E ABV of Rs. 145, yielding a potential upside of 27% and recommend "BUY" rating for a target of Rs. 131 (12-15 months),” says Magnum research report.  

Public holding more than 90% in Indian cos

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