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Buy City Union Bank: Target Of Rs 180: Sharekhan

Sharekhan is bullish on City Union Bank recommended buy rating on the stock with a target price of Rs 180 in its research report dated November 02, 2020.

Nov 5, 2020 / 05:04 PM IST
 
 
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Sharekhan's research repor on City Union Bank


City Union Bank (CUBK) posted in-line with expectations results; asset quality was largely stable with improving PCR. Margin also improved on a sequential basis. Asset quality improved on a sequential basis, with GNPA at 3.44% and NNPA at 1.81% for H1FY2021, down 65 bps/48 bps from FY2020. Moreover, PCR improved by 200 bps q-o-q to reach 70%. CUBK’s management commentary was encouraging with management indicating better pickup in business volumes and indicated growth to return in Q4 (from Q1FY2022 guided earlier).



Outlook


CUBK currently trades at 1.8x/1.5x its FY2022E/FY2023E book value, which we believe is reasonable; We recommend Buy on the stock with a PT of Rs. 180.


For all recommendations report, click here


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Broker Research
first published: Nov 5, 2020 05:04 pm

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