172@29@17@242!~!172@29@0@53!~!|news|business|stocks|buy-rbl-bank-target-of-rs-582-hdfc-securities-2561801.html!~!|controller|infinite_scroll_article.php
Moneycontrol
Financial Freedom Offer: Subscribe to Moneycontrol Pro and grab benefits worth ₹15,000/-
Last Updated : May 03, 2018 03:31 PM IST | Source: Moneycontrol.com

Buy RBL Bank; target of Rs 582: HDFC Securities

HDFC Securities is bullish on RBL Bank has recommended buy rating on the stock with a target price of Rs 582 in its research report dated April 28, 2018.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

HDFC Securities' research report on RBL Bank


RBL  Bank  (RBK)  delivered  across parameters, again. Best-in-class growth (+37% YoY) and robust fees (+33%) drove net earnings (~Rs 1.8bn, +37% YoY). NIM  jumped  for  the  8th  successive  quarter, just shy of 4% (up 46/9bps YoY/QoQ) with the retail thrust. Asset  quality  healed, barring agri loans. RBK beefed up coverage (~57.6%, up  ~400bps  QoQ)  even  as  net  stress dropped 29bps to 0.86%. Solid CASA accretion  (+41%  YoY)  continued,  with  differential  SA  rates. Customer acquisition was robust (4.5mn total).

Outlook

As high-yielding retail loans rise  and the lucrative BBB vertical expands, an uptick in profitability is inevitable. We have factored in a 6bps jump in RoAA over FY18-20E. Maintain BUY with a TP of Rs 582 (3x Mar-20E ABV of Rs 194).

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 May 3, 2018 03:31 pm
Sections