Buy City Union Bank; target of Rs 225: Sharekhan
Sharekhan is bullish on City Union Bank has recommended buy rating on the stock with a target price of Rs 225 in its research report dated February 03, 2021.
February 09, 2021 / 10:48 PM IST
Sharekhan's research report on City Union Bank
Q3FY21 numbers were mixed; Reported asset quality improved sequentially; elevated provisions cause PAT to marginally miss estimates. Total SMA accounts constituted 0.85% of total advances; improving over the last nine months. Restructured standard advances to gross advances ratio stood at 2.21%. Stock trades at 2.0x/1.7x its FY2022E/FY2023E BVPS. Factors such as increasing retail focus, being adequately capitalised (Tier-1 at ~16.3%), and incremental lending to better-rated borrower(s) are positives; secured loans 99% of total loans.
We maintain a Buy rating on the stock with an unchanged price target (PT) of Rs. 225.
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