The shares of DCB Bank jumped nearly 7 percent on November 17 to hit a fresh 52-week high of Rs 187 apiece. This comes as brokerages remain bullish for the stock after the company’s management held the lender’s investor day on November 14.
After hitting a fresh record high, the stock pared some gains to close at Rs 186.34 apiece on NSE, marking a 6 percent rise from the previous closing price.
DCB Bank Investor Day:
In an exchange filling, DCB Bank said that the lender has seen consistent growth over 18 percent in the last six quarters, with balance sheet size crossing the milestone of Rs 75,000 crore in Q4 FY25, and Rs 78,890 crore in Q2 FY26.
The company added that it saw consistent increase in core free income, with highest fee income growth in the last 16 years being recorded at 58 percent YoY in FY25. It added that net interest margin has bottomed out, and it expects an uptick from now.
DCB Bank recorded highest business per employee in last 16 years, highest full year Return on Equity (ROE) in the last 10 years, highest EPS in last 16 years and most efficient capital utilisation in last 10 years.
JM Financial on DCB Bank:
JM Financial kept a ‘Buy’ rating on the stock, while raising the target price to Rs 210 per share from Rs 170 per share. This implies an upside potential of 20 percent from the stock’s previous closing price of Rs 175.5 per share.
The domestic brokerage said that its analysts attended DCB Bank’s investor day where the management reinforced its confidence in delivering approximately 18-20 percent growth with around 0.92-1.0 percent RoA and nearly 13.5-14.5 percent RoE for the next 2 years.
“The bank highlighted the last 6 quarters of consistent 18–20% balance sheet expansion, a sharper focus on secured/granular lending, and disciplined cost management. Improvement in RoA/RoE would be driven by NIM recovery, operating leverage, and a large cross-sell runway. While asset quality remains a risk, with GNPA at 2.9%, the management expects gradual improvement through stronger recoveries, enhanced underwriting and better portfolio mix. With deposit repricing benefits unfolding, we see improving visibility on earnings,” it added.
Motilal Oswal on DCB Bank:
Motilal Oswal Financial Services kept a ‘Buy’ call on the stock, with a target price of Rs 210 apiece. The domestic brokerage estimates DCB Bank to deliver a 24 percent CAGR in earnings over FY26-28.
“DCB Bank (DCBB) has been delivering healthy loan growth and has guided for a steady growth rate of 18-20% over the coming years. The bank continues to focus on granular retail loans with a retail mix (ex-Agri) at 65% of the total portfolio,” it said.
“DCBB has seen a healthy momentum in loan growth, supported by growing focus on gold loans and co-lending partnerships, and the bank expects annual growth of 18-20 percent. Despite repo rate cuts, NIMs expanded 3bp QoQ in 2Q and management expects further improvement on a calibrated basis. With healthy business growth, operating leverage and margin improvement, we expect DCBB to report steady traction in the balance sheet and earnings growth,” it added.
HDFC Securities on DCB Bank:
HDFC Securities upgraded the stock to ‘Buy’ from Add’, and increased its target price to Rs 220 per share. This implies an upside potential of 18 percent from the stock’s previous closing price.
Over the past 6 months, DCB Bank has demonstrated early signs of pricing discipline and improvement in operating metrics, the domestic brokerage said.
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