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Yes Securities has buy call on RBL Bank with a target price of Rs 126. The current market price of . is Rs 113.05. Time period given by analyst is one year when Ltd. price can reach defined target.
RBL Bank Ltd., incorporated in the year 1943, is a banking company (having a market cap of Rs 6684.58 Crore).
RBL Bank Ltd. key Products/Revenue Segments include Interest & Discount on Advances & Bills, Income From Investment, Interest On Balances with RBI and Other Inter-Bank Funds and Interest for the year ending 31-Mar-2021.
Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 2713.65 Crore, down -.50 % from last quarter Total Income of Rs 2727.28 Crore and up .32 % from last year same quarter Total Income of Rs 2704.90 Crore. The bank reported net profit after tax of Rs 164.77 Crore in latest quarter.
Investment Rationale
While margin benefited on sequential basis due to a one-off, loan mix evolution augurs well for structural margin expansion: Management stated that, over a period of time, share of non-wholesale loans would rise to 65% from 52% currently. Furthermore, while overall retail growth in FY22 is expected to be in the mid-to-high 20s, the growth for credit cards and microfinance is expected to be in excess of 30%. THe brokerage maintains ‘Buy’ rating on RBL with a revised price target of Rs 126: It values the bank at 0.6x FY23 P/BV for an FY23E/24E RoE profile of 9.5/11.2%.
Promoter/FII Holdings
Promoters held 0 per cent stake in the company as of 31-Mar-2022, while FIIs owned 30.59 per cent, DIIs 19.05 per cent.
RBL Bank Ltd., incorporated in the year 1943, is a banking company (having a market cap of Rs 6684.58 Crore).
RBL Bank Ltd. key Products/Revenue Segments include Interest & Discount on Advances & Bills, Income From Investment, Interest On Balances with RBI and Other Inter-Bank Funds and Interest for the year ending 31-Mar-2021.
Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 2713.65 Crore, down -.50 % from last quarter Total Income of Rs 2727.28 Crore and up .32 % from last year same quarter Total Income of Rs 2704.90 Crore. The bank reported net profit after tax of Rs 164.77 Crore in latest quarter.
Investment Rationale
While margin benefited on sequential basis due to a one-off, loan mix evolution augurs well for structural margin expansion: Management stated that, over a period of time, share of non-wholesale loans would rise to 65% from 52% currently. Furthermore, while overall retail growth in FY22 is expected to be in the mid-to-high 20s, the growth for credit cards and microfinance is expected to be in excess of 30%. THe brokerage maintains ‘Buy’ rating on RBL with a revised price target of Rs 126: It values the bank at 0.6x FY23 P/BV for an FY23E/24E RoE profile of 9.5/11.2%.
Promoter/FII Holdings
Promoters held 0 per cent stake in the company as of 31-Mar-2022, while FIIs owned 30.59 per cent, DIIs 19.05 per cent.
(Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.
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