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Buy DCB Bank; target of Rs 110: Anand Rathi

Anand Rathi is bullish on DCB Bank has recommended buy rating on the stock with a target price of Rs 110 in its research report dated May 09, 2022.

May 12, 2022 / 08:56 PM IST
 
 
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Anand Rathi's research report on DCB Bank


Higher margins and moderating credit cost led to a strong increase in profitability for DCB, with RoA at ~1.1%. Higher slippages kept asset quality under pressure. Key positives for the quarter were 1) collection efficiency near pre-Covid levels, 2) strong recoveries/upgrades, 3) decline in stress across core segments, 4) strong traction in retail deposits and 5) strong pick-up in disbursements in its core mortgage book. With credit growth expected to pick up and normalising credit costs, earnings would improve.



Outlook


We maintain our Buy rating, with a TP of Rs.110, valuing the stock at 0.7x P/ABV on the FY24e book.

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first published: May 12, 2022 08:56 pm
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