Firstcall Research is bullish on Bank of Maharashtra and has recommended buy rating on the stock with a target of Rs 66 in its May 15, 2013 research report.
Firstcall Research's report on Bank of Maharashtra
"Commenced in 1936, Bank of Maharashtra has crossed many milestones in its journey of serving the nation. Bank is one of the few public sector banks who adopted latest technology more than two decades ago, to bring the benefits of IT to its customers. Bank has its presence in 26 states and 2 Union Territories across India. All the 1665 branches are under CBS, providing "any where any time banking". The Bank’s network of 501 ATMs has highest average daily hits proving that they are placed at most convenient locations of the customers. Bank secured ISO 27001:2005 certificate from Det Norske Veritas (DNV), an international certification agency, for its Information Technology division which establishes that it has complied with the international standards for security capabilities relating to processes, policies, practices and infrastructure. Bank has wide range of IT Enabled services such as "MahaConnect" (Internet Banking Service), Mobile Banking, Phone Banking and SMS Banking facility with online facility for funds transfer to give comfort of banking to its customers.”
“The Bank’s net profit jumps to Rs. 2589.90 million against Rs. 728.30 million in the corresponding quarter ending of previous year, an increase of 255.61 percent. Revenue for the quarter rose 46.52 percent to Rs. 27814.70 million from Rs. 18983.40 million, when compared with the prior year period. Reported earnings per share of the bank stood at Rs. 3.92 a share during the quarter, registering 216.96 percent an increase over previous year period.”
“At the current market price of Rs.59.70, the stock P/E ratio is at 3.96 x FY14E and 3.28 x FY15E respectively. Earning per share (EPS) of the company for the earnings for FY14E and FY15E is seen at Rs. 15.09 and Rs.18.21 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 27 percent and 41 percent over 2012 to 2015E respectively. On the basis of Debt-Equity Ratio, the stock trades at 21.68 x for FY14E and 20.58 x for FY15E. Price to Book Value of the stock is expected to be at 0.69 x and 0.57 x for FY14E and FY15E respectively. We expect that the company will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs 66 for medium to long term investment,” says Firstcall Research report.
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