Buy Dhanlakshmi Bank; target of Rs 55: Joindre Capital

Joindre Capital's research report on Dhanlakshmi Bank

Incorporated in 1927, Dhanlaxmi Bank is one of the oldest mid-size private sector banks in India. The bank has a pan-India presence through a network of 260 branches, 371 ATMs covering 680 centers across 15 states. As on March 31, 2017, the bank had total deposits at Rs. 11294 crs with advances at Rs.6596 crs and an asset base of Rs. 12333 crs. DBL has a well diversi fied product basket and is present across the Personal Banking, Corporate Banking, NRI Banking, Micro & Agri Banking, SME Banking and other Financial planning verticals.

Outlook

Hence we believe that the DBL stock should be purchased at the current price for a price target of around Rs 55 over the next 12 to 18 months assuming that DCB could get a P/B multiple of 1.5x going ahead.