Buy Andhra Bank; target Rs 85: Firstcall Research
Brokerage house Firstcall Research is bullish on Andhra Bank and has recommended buy rating on the stock with a target price of Rs 85 in its July 18, 2013 research report.
July 22, 2013 / 14:16 IST
Firstcall's research report on Andhra Bank
"Andhra Bank's Net Income has increased to Rs. 33589.90 million as against Rs. 29989.80 million in the corresponding quarter of the previous year. The growth rate is 12 percent for the quarter as compared to the previous year's quarter. Profit after Tax rose at 1.45 percent from Rs.3396.70 mn in March 2012 to Rs. 3445.80 mn in March 2013. Earning per share also increased by 1.45 percent for the quarter ended March 2013 from Rs. 6.07 to Rs. 6.16 per share."Outlook and Conclusion: "At the current market price of Rs.79.30, the stock P/E ratio is at 3.22 x FY14E and 2.98 x FY15E respectively. Earning per share (EPS) of the company for the earnings for FY14E and FY15E is seen at Rs. 24.64 and Rs.26.60 respectively. Net Income and PAT of the company are expected to grow at a CAGR of 13 percent and 3 percent over 2012 to 2015E respectively. The Debt Equity Ratio is estimated at 16.47 x for FY14E and 17.23 x for FY15E. Price to Book Value of the stock is expected to be at 0.45 x for FY14E and 0.39 x for FY15E respectively. We expect that the Bank will continue to improve its financial fundamentals in the coming quarters. We recommend 'BUY' in this particular scrip with a target price of Rs. 85.00 for Medium to Long term investment," says Firstcall Research report.Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. 
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