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Last Updated : Apr 17, 2018 03:33 PM IST | Source: Moneycontrol.com

Buy DCB Bank; target of Rs 216: HDFC Securities

HDFC Securities is bullish on DCB Bank has recommended buy rating on the stock with a target price of Rs 216 in its research report dated April 17, 2018.

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HDFC Securities' research report on DCB Bank


DCBBs 4Q numbers were brimming with positives as growth sustained (+29% YoY) and NIMs held up (4.16%, +4bps QoQ). Tight control on costs was evident as opex grew merely ~2% QoQ and core C-I dropped 330bps QoQ. Robust fee growth (+39%), timely reduction of the mortgage portfolio (down 200bps QoQ) and sharp rise in PCR (75.7%; +240bps QoQ) were a key positives. Asset quality was contained with lower slippages, better recoveries and healthy PCR.

Outlook

With steady NIMs, a tight grip on asset quality and oplev benefits, return ratios are set to improve hereon. Our conservative provisions cost (55bps over FY18-20E) provide further upside risk. Maintain BUY with a TP of Rs 216 (2.2x Mar-20 ABV of Rs 98.3).

For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

First Published on Apr 17, 2018 03:33 pm
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