Moneycontrol
Apr 17, 2018 03:28 PM IST | Source: Moneycontrol.com

Buy DCB Bank; target of Rs 247: Reliance Securities

Reliance Securities is bullish on DCB Bank has recommended buy rating on the stock with a target price of Rs 247 in its research report dated April 17, 2018.

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Reliance Securities' research report on DCB Bank


DCB Bank continued to deliver healthy performance on all major metrics in 4QFY18 as well led by (a) strong growth in loan book (+28.6% YoY & 9.4% QoQ); (b) all-time high NIMs of 4.16% in FY18 vs. 4.04% in FY17; (c) strong growth in other income (+33.4% YoY & 13.2% QoQ); (d) continued sequential improvement in C/I ratio to 59.4% vs. 62.3% in 3QFY18; and (e) lower fresh slippages of Rs805mn vs.

Outlook

As creditworthiness of its core client group from SME/MSME segment is steadily improving post GST roll-out, we expect further improvement in Bank’s operating performance. Rolling over our valuation to FY20E, we reiterate our BUY recommendation on the stock with a revised Target Price of Rs247 based on 2.4x FY20E Adjusted book value.

For all recommendations report, click here


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