Buy ING Vysya Bank; target of Rs 475: Motilal Oswal

5057 Investors following ING Vysya Bank. Share this News with them.

0

Like this story, share it with millions of investors on M3

Buy ING Vysya Bank; target of Rs 475: Motilal Oswal

Motilal Oswal is bullish on ING Vysya Bank and has recommended buy rating on the stock with a target of Rs 475 in its January 18, 2011 research report.

Post your opinion here

 

0

Tweet

Share on Tumblr

RELATED NEWS Buy Axis Banks; target of Rs 1630: Karvy Stock Broking Buy Kotak Mahindra Bank; target of Rs 531: P Lilladher Buy Yes Bank; target of Rs 400: Prabhudas Lilladher ALSO READ See previous views by Motilal Oswal See what other Experts & Brokerages are saying about ING Vysya Bank See messages about ING Vysya Bank ING Vysya Bank BSE | NSE 31/05/12 Are Mutual Funds betting on ING Vysya Bank?

Motilal Oswal is bullish on ING Vysya Bank and has recommended buy rating on the stock with a target of Rs 475 in its January 18, 2011 research report.

"ING Vysya Bank's PAT grew 37% YoY to Rs 8.3 billion in 3QFY11, led by strong growth in net interest income and fall in provisions. PAT was ~10% higher than we had expected due to higher than estimated non interest income. Positives: (1) Continued momentum in loan growth (+6% QoQ and +23% YoY), (2) QoQ decline of ~7% in GNPA in absolute terms and QoQ improvement in PCR to 76% v/s 73%, and (3) Fee income growth of 21% YoY and ~6% QoQ. Negatives: (1) Reported margins declined 24bp QoQ, led by 59bp increase in cost of deposits; however, adjusted for income from MF, NIM declined to 3.26% v/s 3.39% in 2QFY11 and 3.37% in 1HFY11, (2) Fall in core CASA ratio to 33.5% v/s 34.8% a quarter ago, and (3) Continued high cost to income ratio of 60%+."

"Over FY11-13, we expect operating profit to grow at a CAGR of 19% and PAT to grow at a CAGR of 28% on the back of (1) strong loan growth, (2) improving fee income growth, and (3) lower credit cost. RoA is likely to improve from 0.7% in FY10 to ~1% by FY13, and RoE from 11.6% in FY10 to ~18% by FY13. ING Vysya Bank (IVB) is a play on increasing return ratios backed by improvement in core operating performance and improving balance sheet profile. IVB trades at 10.7x FY12E EPS of Rs 32 and 8.2x FY13E EPS of Rs 41.6, and at 1.5x FY12E BV of Rs 235.1 and 1.3x FY13E BV of Rs 272. Strong growth coupled with improving return ratios could result in a re-rating. We reiterate Buy with a target price of Rs 475 (2x FY12E BV)," says Motilal Oswal research report.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management.Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click on the attachment