Dena Bank has target of Rs 120, says Phani Sekhar, Fund Manager, Angel Broking.
Sekhar told CNBC-TV18, "Dena Bank - from a four month perspective it's a bit difficult because of the rally that most of these midcap PSU's have seen they might, their performance in the very short term might be a function of where the markets are headed. But I have been quite heartened by the results of many of these midcaps PSU's because they indicate that the worse might be over for them or at least they are very close to the bottom and Dena Bank is one of them."
He further added, "The kind of NII growth and more importantly steady NIM's coupled with very less incremental slippages and a relatively healthy NPL ratios shown where Dena Bank is quite a departure from its past. And to that extent the stock is up for some re-rating which it was enjoying maybe 6-9 months back. But because of the concerns with midcap PSU banks it got de-rated to 0.5-0.55. Now the stock is trading at around 0.78 adjusted book for FY13. From these levels over the longer term, I do not expect any structural de-rating. So it will be good idea if the investor were to hold on for maybe a year then he/she can look at a target price of close to Rs 120."
