DCB Bank Q3 Results Review: IDBI Capital Maintains 'Buy' On The Stock, Sees 49% Upside — Here's Why

RBI approved Praveen Kutty as MD of the DCB Bank who has been part of bank leadership team for past 16 years; thus ensures continuity of the strategy..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..IDBI Capital Report.DCB Bank Ltd’s net interest margin improved by 3bps QoQ to 3.3% led by increase in yield on assets. Management believes that margins have bottomed out thus will show an upward trajectory going ahead. Asset quality improved with gross non-performing asset at 3.11% vs 3.29% QoQ led by higher write offs. Banks deposits growth remained strong at 20% YoY; credit growth too witnessed strong growth at 23% YoY. We expect 18% CAGR (FY25-27) credit growth. NII grew by 15% YoY led by decline in margins. Core fee income grew by 44% YoY; also management guided for sustainability which will drive return ratios higher. Pre provision operating profit grew by 28% YoY led by higher non-interest income. PAT grew by 20% YoY led by higher provisions (up 64% YoY). We largely maintained the estimates and rolled over to FY27E. We maintain ‘Buy’ with a target price of Rs 170 valuing it at 0.8x P/ABV FY27E..Click on the attachment to read the full report:.NTPC Q3 Review — Valuations Inexpensive But Execution To Watch Out For, Says Motilal Oswal, Retains 'Neutral'.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

DCB Bank Q3 Results Review: IDBI Capital Maintains 'Buy' On The Stock, Sees 49% Upside — Here's Why

DCB Bank's valuations seems quite comfortable at 0.5X FY27E adjusted book value, adds the brokerage.

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