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Last Updated : Feb 20, 2019 03:02 PM IST | Source: Moneycontrol.com

Buy Equitas Holdings; target of Rs 150: Motilal Oswal

Motilal Oswal is bullish on Equitas Holdings has recommended buy rating on the stock with a target price of Rs 150 in its research report dated February 04, 2019.

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Motilal Oswal's research report on Equitas Holdings


Equitas reported PPoP growth of 198%/14% YoY/QoQ to INR1.2b (largely in line with our estimates), driven by 37%/16% YoY/QoQ growth in NII. Lending spreads improved 49bp QoQ to 11.2%, while NIM stood at 8.98% (+128bp QoQ) on the back of 62bp improvement in cost of funds. Total opex grew 17%/12% YoY/QoQ to INR2.6b (5% above MOSLe) led by 40% YoY growth in other opex (paid PSLC premium of INR238m). Cost-income ratio, thus, remains elevated at 68.2% (39bp QoQ decline).


Outlook


We reiterate BUY with a target price of INR150, based on 1.9x Sep-20E ABV of INR81 per share.


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 Feb 20, 2019 03:02 pm
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