AgenciesICICI Direct has buy call on DCB Bank with a target price of Rs 130. The current market price of . is Rs 111.9. Time period given by analyst is one year when Ltd. price can reach defined target.
DCB Bank Ltd., incorporated in the year 1995, is a banking company (having a market cap of Rs 3480.45 Crore).
DCB 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-2022.
Financials
For the quarter ended 30-06-2022, the company reported a Standalone Total Income of Rs 1041.69 Crore, up .67 % from last quarter Total Income of Rs 1034.71 Crore and up 7.87 % from last year same quarter Total Income of Rs 965.67 Crore. The bank reported net profit after tax of Rs 97.15 Crore in latest quarter.
Investment Rationale
Post caution in business growth and asset quality volatility amid Covid, the bank has remained an underperformer. However, the bank is well positioned to benefit from economic recovery in terms of pedalling higher business growth with stability in asset quality expected to act as a catalyst for improvement in return ratios and, thus, re-rating of valuations. Thus, the brokerage upgrades the stock from HOLD to BUY with a target price of Rs 130 (~1x FY24E ABV).
Promoter/FII Holdings
Promoters held 14.85 per cent stake in the company as of 30-Jun-2022, while FIIs owned 12.45 per cent, DIIs 37.62 per cent.
DCB Bank Ltd., incorporated in the year 1995, is a banking company (having a market cap of Rs 3480.45 Crore).
DCB 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-2022.
Financials
For the quarter ended 30-06-2022, the company reported a Standalone Total Income of Rs 1041.69 Crore, up .67 % from last quarter Total Income of Rs 1034.71 Crore and up 7.87 % from last year same quarter Total Income of Rs 965.67 Crore. The bank reported net profit after tax of Rs 97.15 Crore in latest quarter.
Investment Rationale
Post caution in business growth and asset quality volatility amid Covid, the bank has remained an underperformer. However, the bank is well positioned to benefit from economic recovery in terms of pedalling higher business growth with stability in asset quality expected to act as a catalyst for improvement in return ratios and, thus, re-rating of valuations. Thus, the brokerage upgrades the stock from HOLD to BUY with a target price of Rs 130 (~1x FY24E ABV).
Promoter/FII Holdings
Promoters held 14.85 per cent stake in the company as of 30-Jun-2022, while FIIs owned 12.45 per cent, DIIs 37.62 per cent.
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