Buy DCB Bank Ltd. target Rs 223 : Nirmal Bang Securities

Nirmal Bang Securities has Buy on DCB Bank Ltd. with a target price of Rs 223. The current market price of DCB Bank is Rs 201.2 Time period given by analyst is year when DCB Bank Ltd. price can reach defined target.
DCB Bank (DBL) reported 4QFY18 results with the key strategic pointers being: (1) Fee income growth is being driven by cross-selling across products; (2) Asset quality has remained under control while provision cover remains best in class; (3) Cost to income ratio has improved to 59.4%. Per se, on the results front, DBL posted NII growth of 20% YoY to Rs2,637mn, PPOP growth of 23% YoY to Rs 1,146 and PAT growth of 21% YoY to Rs642mn. Nirmal Bang marginally modified its estimates for FY19/FY20 and retained Buy rating on DBL, increasing the target price on it to Rs 223 (from Rs196 earlier) and valuing the stock at 1.9x FY20E P/BV.