Moneycontrol Be a Pro
Get App
Last Updated : Nov 15, 2018 04:13 PM IST | Source: Moneycontrol.com

Hold City Union Bank; target of Rs 160: Centrum

Centrum recommended Hold rating on City Union Bank with a target price of Rs 160 in its research report dated November 02, 2018.

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

Centrum's research report on City Union Bank


We retain Hold on CUBK with TP at Rs160 (valued at 2.2x FY20E ABV). Q2’19 revenue beat estimates on strong margin performance; PAT though was as per expectations. Loan growth remains healthy (consecutive fourth quarter of 17%+ YoY growth); asset quality intact with coverage (incl. tech w/off) healthy at 65%; capital position remains strong (CAR / Tier-I at 15.1% / 14.7% respectively). We like CUBK for its business model and superior return ratios. Valuations at 2.4x FY20E ABV, however limit near term upside.


Outlook


We suggest accumulating CUBK at lower levels. Retain HOLD with TP Rs160. Key risks: lower growth / higher than expected margin compression.


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.



Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.
First Published on Nov 15, 2018 04:13 pm
Loading...
Sections
Follow us on
Available On