Buy Bank of India; target Rs 183: Firstcall Research

Firstcall Research report on Bank of India

"Bank of India's net profit rises to Rs. 9641.80 million as against Rs. 8874.50 million in the corresponding quarter ending of previous year, an increase 8.65 percent. Revenue for the quarter rose 10.79 percent to Rs. 85412.40 million from Rs. 77091.70 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs. 16.16 a share during the quarter, registering 4.62 percent an increase over previous year period."

Outlook and Conclusion: "At the current market price of Rs.165.00, the stock P/E ratio is at 3.28 x FY14E and 2.99 x FY15E respectively. Earning per share (EPS) of the company for the earnings for FY14E and FY15E is seen at Rs. 50.36 and Rs.55.19 respectively. Net Income and PAT of the company are expected to grow at a CAGR of 10 percent and 7 percent over 2012 to 2015E respectively. On the basis of Debt Equity ratio, the stock trades at 17.88 x for FY14E and 17.95 x for FY15E. Price to Book Value of the stock is expected to be at 0.37 x and 0.33 x for FY14E and FY15E respectively. We recommend 'BUY' in this particular scrip with a target price of Rs 183 for Medium to Long term investment," says Firstcall Research report.

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