Centrum Research has recommended hold rating on Bharat Financial Inclusion with a target price of Rs 1193 in its research report dated February 27, 2018.
Centrum Research's report on Bharat Financial Inclusion
Bharat Financial Inclusion Ltd (BFIL), for Q3FY18, reported good set of numbers with gross NPAs declining 60bps QoQ to 4.6%, along with a gross loan growth of 34.4% to ₹11,466 crore. The net interest income grew 41.4%. However, with the cost-income ratio (CI%) increasing 360bps YoY to 43.2%, the pre-provisioning profit grew at a slower pace of 16.8%. Net profit grew 13.9%.
OutlookWe maintain our hold recommendation on the stock valuing it at 3.5x its FY20E adjusted book value (ABV) and adding PV of DTA benefits, arriving at a target of ₹1,193.
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