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Last Updated : Aug 10, 2018 04:32 PM IST | Source: Moneycontrol.com

Buy City Union Bank; target of Rs 210: HDFC Securities

HDFC Securities is bullish on City Union Bank has recommended buy rating on the stock with a target price of Rs 210 in its research report dated 09 Aug 2018.

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HDFC Securities' research report on City Union Bank

CUBK’s 1Q show mirrored its stable performance through FY18 as advances grew ~17% YoY and fee traction sustained (up 12% sequentially). While margins were down 12bps QoQ (4.24%) the dip was on expected lines. Though CUBK continues to prudently provide (~Rs 80mn) on O/S SR’s, overall provisions were down ~10% sequentially.

Outlook

Steady growth and a tight grip on asset quality will keep best-in-class return ratios steady. With a stable show yet again, CUBK remains a steady compounder in our view. Maintain BUY with a TP of Rs 210 (3x Mar-20E ABV of Rs 70).

For all recommendations report, click here

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First Published on Aug 10, 2018 04:32 pm
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