ICICI Direct is bullish on DCB Bank has recommended buy rating on the stock with a target price of Rs 215 in its research report dated April 16, 2018
ICICI Direct's research report on DCB Bank
DCB Bank reported a healthy set of Q4FY18 numbers with business traction and earnings coming in above our estimates Advances grew at a strong rate of 28.6% YoY (highest in the last six quarters) to | 20337 crore mainly led by the corporate, SME and mortgage book. Deposits increased 24.5% YoY to | 24007 crore with CASA ratio staying at 24%
OutlookWe expect RoA to improve gradually to 1.1% by FY20E and RoE to reach ~14%. With core fundamentals staying intact, we largely maintain our estimates. We revise our target price higher to | 215, valuing DCB Bank at 2.1x FY20E ABV. We have a BUY recommendation on the stock.
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