DCB’s share price has been in a base-building phase since the beginning of June 2022. However, the bank’s shares have seen a turnaround in the past few sessions and Axis Bank Securities believes that the bank’s shares can continue to attract buyers every fall for a long time. . . A brokerage report says that DCB’s share price may rise up to 115 one level. today, DCB share price 75 that means the brokerage expects a 55 percent rise in this bank note.

Speaking about the outlook for DCB Bank’s share price, the brokerage said, “Despite operating mainly in the self-employed segment, DCB has been able to manage asset quality pressure well. Collections have continued well and are likely to continue, the safety of the bank’s adjusted book points to a correction in credit costs going forward. Positive trends in terms of a strong recovery pipeline and control in liquidity will help in improving asset quality. With asset quality stress and credit costs on the rise, balance sheet growth and improved return ratios should drive DCB’s valuation.”

Highlighting DCB Bank’s significant financial performance, the Axis Securities research report says, “The bank’s focus on maintaining asset quality and improving collections along with its cautious growth outlook slowed down its issuance, and thus growth. Even thus, on a normal basis, DCB NII growth remained subdued at 6% YoY due to higher volatility and excess liquidity weighing on yields. However, it was partially offset by a 46bps improvement in CoF due to subdued interest rate environment. Hence, NIMs remained broadly flat at 3.56% in FY22, which was further supported by higher returns in Q4FY22. While fee income growth remained healthy at 22% YoY, lower fund income dampened non-interest income which remained flat YoY.”

Regarding the recommendation for short-term investors on DCB Bank shares, Axis Securities said, “We maintain our rating and maintain our BUY recommendation on the stock with a target price of 115/share.”

Disclaimer: The opinions and recommendations given above are those of individual analysts or brokerage firms, and not of Mint.

Get all the Business News, Market News, New Events and Latest News on Mint Live. Download Mint News App to get Daily Market Updates.

More Less



Source link