ICICI Direct is bullish on Indian Bank has recommended buy rating on the stock with a target price of Rs 350 in its research report dated April 26, 2017.
ICICI Direct's report on Indian Bank
Indian Bank is a mid-sized PSU bank with close to 2682 branches. In four years until FY15, credit traction has been strong at 19% CAGR, way ahead of the industry, growing at 17.4% CAGR. However, owing to a slowdown in corporate credit demand, advances remained flattish in FY16-17.
With better earning visibility (PAT CAGR estimated at 26% to Rs 2230 crore in FY17-19E), we remain positive on the stock maintaining our growth projection. Factoring in capital raising and moving to FY19E estimates, we revise our target price higher to Rs 350 (earlier Rs 305), keeping our target multiple at 1.25x FY19E ABV. We maintain our BUY recommendation.
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