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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
 
 
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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.


Outlook


We maintain a Buy rating on the stock with an unchanged price target (PT) of Rs. 225.


For all recommendations report, click here


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first published: Feb 9, 2021 10:48 pm

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