ICICI Direct is bullish on DCB Bank has recommended buy rating on the stock with a target price of Rs 250 in its research report dated April 19, 2019.
ICICI Direct's research report on DCB Bank
PAT growth came in higher at 50% YoY to Rs 96.3 crore in Q4FY19 (I-direct estimate - Rs 89.5 crore), led by steady provision and cost control. Slower branch addition and improved productivity led to an improvement of ~151 bps QoQ & 571 bps YoY in CI ratio at 53.7%. Higher recoveries of Rs 106.3 crore & stable slippages at Rs 100.7 crore led to ~8 bps QoQ decline in GNPA ratio to 1.84%. Advances growth remained slower at 15.9% YoY to Rs 23568 crore, led by repayment in corporate book and slower traction in mortgage & SME book. Retail term deposit accretion remained robust at 31.4% YoY.
Rolling our estimates to FY21E and maintaining our multiple at 2.1x ABV, we revise our target price upwards to Rs 250 per share. Hence, we maintain our BUY rating.
For all recommendations report, click here
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