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Last Updated : Oct 26, 2016 03:34 PM IST | Source: Moneycontrol.com

Buy RBL Bank; target of Rs 365: Axis Direct

Axis Direct is bullish on RBL Bank has recommended buy rating on the stock with a target price of Rs 365 in its research report dated October 21, 2016.

 
 
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Axis Direct's research report on RBL Bank


RBL is a young ‘old-generation’ private bank with a differentiated distribution strategy. Strong management bandwidth will ensure successful execution of multi-channel network strategy and deliver best in class loan growth (33% CAGR vs. peers’ 13-24% over FY16-18E) at a relatively lower cost. No legacy issues, a well-diversified portfolio, increasing operating leverage and complete PSL-compliance are important competitive advantages. Valuations are lucrative vs. comparable peers (2.5x ABV vs. 3.1-3.8x for Kotak Mahindra Bank, IndusInd Bank, Yes Bank), and we expect the gap to narrow as execution of strategy translates to higher return ratios. Initiate with BUY and TP of Rs 365.

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First Published on Oct 26, 2016 03:34 pm
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