Buy South India Bank; target of Rs 20: Motilal Oswal

Motilal Oswal is bullish on South India Bank has recommended buy rating on the stock with a target price of Rs 20 in its research report dated December 13, 2018.

December 14, 2018 / 03:30 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Motilal Oswal's research report on South India Bank


Declining market share in its home state of Kerala has been a wake-up call for SIB. To recoup the recent loss in market share, SIB now aims to leverage its existing customer relationship by cross selling. The bank has constituted a separate ‘business development channel’ in addition to its existing branch network to speed up the sourcing of retail products. Also, the bank has centralized and automated its retail and SME lending operations, account opening operations and IT operations over the last two years.


Outlook


We thus, arrive at FY20E RoA/RoE of 0.5%/9.1%. Maintain Buy with a TP of INR20 (0.8x FY20E ABV).


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.

Broker Research
first published: Dec 14, 2018 03:30 pm

stay updated

Get Daily News on your Browser
Sections