Brokerage house Firstcall Research is bullish on Bank of Maharashtra (BOM) and has recommended buy rating on the stock with a target price of Rs 44 in its August 12, 2013 research report.
Firstcall's research report on Bank of Maharashtra (BOM)
"Bank of Maharashtra's net profit jumps to Rs. 2663.30 million against Rs. 1086.60 million in the corresponding quarter ending of previous year, an increase of 145.10 percent. Revenue for the quarter rose 34.86 percent to Rs. 27492.10 million from Rs. 20385.00 million, when compared with the prior year period. Reported earnings per share of the bank stood at Rs. 4.03 a share during the quarter, registering 118.47 percent an increase over previous year period."
Outlook and Conclusion: "At the current market price of Rs.39.90, the stock P/E ratio is at 2.48 x FY14E and 1.90 x FY15E respectively. Earning per share (EPS) of the company for the earnings for FY14E and FY15E is seen at Rs. 16.06 and Rs. 21.02 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 25 percent and 48 percent over 2012 to 2015E respectively. On the basis of Debt-Equity Ratio, the stock trades at 21.44 x for FY14E and 19.85 x for FY15E. Price to Book Value of the stock is expected to be at 0.46 x and 0.37 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 44 for Medium to Long term investment," says Firstcall Research report.
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