DCB to remain in Rs 48-52 range: SP Tulsian

Expect Development Credit Bank (DCB) to remain in Rs 48-52 range, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, "I don’t think that you are really having too excitement on DCB. Profit after tax (PAT) is expected to be close to about Rs 25 crore or so. About the asset quality, I don’t think that the net non-performing assets (NPAs) are likely to increase. I think that was at around 0.7 percent for Q2 and it is likely to remain at the same level. I don’t think that much improvement is really likely to happen in that and that’s the reason if you really see the share price behaviour practically for the last one year it has been moving in the range of Rs 45-50, even if it corrects to Rs 40-41 or Rs 42 it quickly comes back within that range and whenever it moves to Rs 52-53, it is not able to breach that level of Rs 53 also."
He further added, "So more or less the performance will be flat with a bottomline of close to Rs 25 crore with asset quality as I said of net NPA remaining at 0.7-0.75 percent. But the market which earlier have been talking and seen this to be as a takeover candidate and people have started talking also that Housing Development Finance Corporation (HDFC) Bank is seriously looking into acquiring this company because they are very close to Aga Khan family and that is likely to happen. I don’t think that even that event is likely to happen in the near-term."
"The stock is likely to continue in the tight range, maybe even after the numbers also even if it disappoints the stock will correct to Rs 48 and even if it cheers it won’t move beyond Rs 52-52.50."