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Buy CSB Bank; target of Rs 330: Dolat Capital Market

Dolat Capital Market is bullish on CSB Bank has recommended buy rating on the stock with a target price of Rs 330 in its research report dated April 09, 2021.

June 09, 2021 / 06:34 PM IST
An Edelweiss research report for Q4FY21 says road tonnage continued to improve, evident in e-way bill generation (up 6% QoQ) and improved core trucking rentals. “We estimate tonnage would increase by three–five percent for truckers. Asset-light plays Mahindra Logistics and TCI Express remain our preferred picks due to their ability to scale up/down as the environment demands,” the report said. Edelweiss is bullish on Blue Dart Express due to the pandemic-induced boom in e-commerce and its leaner cost structure. It has retained a ‘buy’ call on Mahindra Logistics, TCI Express and Blue Dart Express.

An Edelweiss research report for Q4FY21 says road tonnage continued to improve, evident in e-way bill generation (up 6% QoQ) and improved core trucking rentals. “We estimate tonnage would increase by three–five percent for truckers. Asset-light plays Mahindra Logistics and TCI Express remain our preferred picks due to their ability to scale up/down as the environment demands,” the report said. Edelweiss is bullish on Blue Dart Express due to the pandemic-induced boom in e-commerce and its leaner cost structure. It has retained a ‘buy’ call on Mahindra Logistics, TCI Express and Blue Dart Express.

 
 
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Dolat Capital Market's research report on CSB Bank


CSB Bank reported a good set of numbers with further improvement in NIM to 5.4%, sharp sequential improvement in pro forma GNPAs (down 70 bps), healthy loan growth (9% QoQ) and good traction in low cost liabilities (34% YoY CASA growth). However, one-time actuarial impact of revision in mortality assumptions (Rs381 mn) resulted in higher opex and weaker PPoP/PAT vs estimates.


Outlook


We maintain our BUY recommendation on the stock with a TP of Rs330, valuing the bank at 2.2x of FY23E P/ABV against RoA/RoE of 1.4%/15%. The stock currently trades at 1.7x FY23E P/ABV.


For all recommendations report, click here


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first published: May 14, 2021 03:30 pm

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