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Last Updated : Jun 14, 2020 03:12 PM IST | Source: Moneycontrol.com

Buy DCB Bank; target of Rs 231: SPA Securities

SPA Securities is bullish on DCB Bank has recommended buy rating on the stock with a target price of Rs 231 in its research report dated June 11, 2020.

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SPA Securities' report on DCB Bank


DCB reported advance degrowth of 0.37% for Q4FY20 on a QOQ basis while deposits registered a QOQ growth of 2.14%, even though Q4 usually has historically been the strongest quarter for the bank. NIMS for the quarter stood at 3.64% against 3.71%bin Q3FY20. GNPA's stood at 2.46% against 2.20% in Q3FY20 while NNPA stood at 1.16% against 1.03% in Q3FY20. The provision coverage ratio was at 70.81% against 76.99% in Q3FY20. Advances growth to pick up pace from Q3FY21 as COVID induced pain.



Outlook


Currently the stock is trading at 0.5x p/b of FY22E ADBV of INR 142.2. We retain our buy recommendation with a target of INR 231 in 18 months based on 1.62x p/adbv of FY22E.




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 Jun 14, 2020 03:12 pm
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