Buy DCB tgt Rs 142: ICICI Securities

ICICI Securities has recommended a buy rating on Development Credit Bank(DCB), with a target price of Rs 142 in its march 14, 2008 research report. "DCB's aggressive expansion, it's high yielding assets, improving CASA ( Current A/c Savings A/c), rise in other income, maintenance of asset quality and heathly earning's will have a positive impact on its share price"

" We estimate DCB to post strong three-year earnings CAGR of 164%; also, RoE would rise to 16.4% by FY10E driven by sharp improvement in RoA to 1%. We believe DCB could trade at FY10E BV of 2.85x, based on our estimated normalised RoE of 19%. Intermittent capital dilutions (not factored in our estimates) would be significantly book-value accretive. Initiate coverage with BUY recommendation and target price of Rs142/share. Management attrition and execution risks are key concerns." says ICICI Secuties.

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Source : MoneyControl