July 29, 2021

The World Stock Markets Tips & Targets, News, Views & Updates

The World Stock Markets Tips & Targets, News, Views & Updates

Buy Indian Bank; target of Rs 225: Emkay Global Financial

Emkay Global Financial is bullish on Indian Bank has recommended buy rating on the stock with a target price of Rs 225 in its research report dated July 20, 2021.

Broker Research

July 21, 2021 / 01:31 PM IST

Emkay Global Financial’s report on Indian Bank

Indian Bank has benefited the most from the merger with Allahabad Bank([email protected]%) and has largely completed the integration process. It is now gearing up to accelerate growth with a strong capital buffer (CET 1 of 11.6% post recent QIP). We expect a sharp improvement in RoE to 13% by FY24E from 4% post-merger in FY20. We upgrade it to Buy with a revised TP of Rs225 (0.7x Jun’23E ABV). In Q1, the bank once again delivered a strong beat on PAT at Rs11.8bn (est. Rs7.7bn), mainly driven by better NIMs, higher other income, and tax reversal benefits from c/fwd accumulated losses. Despite higher slippages (mainly in SME), GNPA moderated further to 9.7% due to aggressive w-offs.

Outlook

We expect a sharp improvement in RoE to 13% by FY24E from 4% post-merger in FY20. We upgrade it to Buy with a revised TP of Rs225 (0.7x Jun’23E ABV).

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.

Broker Research

<!–

–>

Share This :