Monday, 27 October 2008

Buy Oriental Bank, target of Rs 224: Karvy

Karvy Stock Broking has maintained its buy rating on Oriental Bank of Commerce (OBC) with a target of Rs 224 in its October 27, 2008 research report. "In 2QFY09, Oriental Bank of Commerce reported NII growth of 31% (Y/Y) to Rs 5.2 billion compared to our estimates of Rs 4.2 billion; much higher than our estimates mainly due higher yield on advances and contained cost of deposits. We estimate that in FY2008-10, the bank's total business and bottomline would grow at 21% and 4.1 % CAGR respectively."

"We believe that the bank would report RoAA of 0.75-0.8% and RoAE of 13.2% in FY2009-10. Due to improvement in NII and fee income we increase our earning estimates for FY2009 and FY10 by 47% and 10% respectively and increase our target price by 24% to Rs 224. We reaffirm our BUY rating with a target price of Rs 224 at 0.86x adjusted book value FY2010," says Karvy Stock Broking's research report.

Disclaimer: The views and investment tips expressed by investment experts on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Source: Moneycontrol

No comments:

Post a Comment

DISCLAIMER: The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.