English
Specials
    Go Ad-Free
    My Alerts
    Moneycontrol
    Moneycontrol PRO
    HomeNewsBusinessStocksBuy City Union Bank; target of Rs 166: Axis Direct

    Buy City Union Bank; target of Rs 166: Axis Direct

    Axis Direct is bullish on City Union Bank has recommended buy rating on the stock with a target price of Rs 166 in its research report dated February 17, 2017.

    February 20, 2017 / 15:43 IST
     
     
    live
    • bselive
    • nselive
    Volume
    Todays L/H
    More

    Axis Direct's research report on City Union Bank

    City Union Bank (CUB) reported PAT of Rs. 127 cr for Q3FY17 (up 12% YoY) against Rs. 113 cr in Q2FY16, this earning growth was mainly supported by 21.4% YoY growth in Net interest income. Loan growth for Q3 FY17 has declined to 13% YoY from 18% in Q2 FY17.

    Outlook

    CUB is currently trading at 2.3x FY17E P/ABV. The management targets credit growth of 15-18% in FY17E and 20% in FY18E; we expect credit growth at CAGR 16% for FY16-18E. We value CUB at FY18E P/ABV multiple of 2.5x to arrive at target price of Rs 166/share and maintain our BUY rating on the stock.
    For all recommendations, 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.

    Read More Read More

    first published: Feb 20, 2017 03:43 pm

    Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

    Subscribe to Tech Newsletters

    • On Saturdays

      Find the best of Al News in one place, specially curated for you every weekend.

    • Daily-Weekdays

      Stay on top of the latest tech trends and biggest startup news.

    Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347