Buy Allahabad Bank, target of Rs 105: Maximus Securities
Maximus Securities has recommended a buy rating on Allahabad Bank, with price target of Rs 105, in its report dated June 18, 2009.
“At the current price of Rs 75.50 the scrip discounts its estimated EPS of FY10 by 3.08x. The scrip is currently trading at a PE ratio of 4.39x and P/BV ratio of 0.68x which is at a discount of 45% and 10% to the industry average respectively. With the pick up in credit demand particularly in infrastructure and home loan segment, the business of the Bank is expected to grow at 20-21% in FY10. However NIM is likely to be affected with reduced lending rates which may affect the profitability of the Bank in the coming year. But the Banks target of 40% CASA ratio will help to maintain NIM at 2.75% at the end of FY10. With restructured accounts in the balance sheet, rise in NPAs remains a concern. However the fact that the Bank is adequately capitalized, provides cushion in case NPAs rise. We recommend a “BUY” on Allahabad Bank with a target price of Rs 105 and an investment horizon of one year,” says Maximus Securities’ report.
source: Moneycontrol
Tags: allabhabad bank, best stock in banking sector, brokerage tips and calls, buy or sell banking stocks, maximus securities, top banking stocks
Similar Posts:
Latest Query
- by Sam
Market Stats
Search Our Archives
Research Desk
- Stocks Trading above their 50 day moving average - DMA In Stock Research
- Download free Ebooks based on Technical Analysis In Personal Training
- TOP 100 Stocks with the Highest P/E as on July 14th, 2013 In Stock Research
- TOP 100 Stocks with the Lowest P/E as on July 14th, 2013 In Stock Research
- Charting Pathsala - Your guide to Techincals In Technical Analysis
