Thursday 17 September 2009

PNB an underperformer: Karvy

Karvy Stock Broking has rated Punjab National Bank (PNB) as an underperformer with a target price of Rs 755 in its September 17, 2009 research report.

"We revise our rating on Punjab National Bank (PNB) from 'Market Performer' to 'Under Performer' due to increase in stock price. We have not changed our earning estimates for FY10 and FY11; we expect the bank's net interest income (NII), operating profit and net profit to grow by 18%, 13.5% and 6.5% CAGR during FY09-11. We value the bank on DDM valuation methodology using cost of equity of 13.5%, we determine the bank's fundamental value at Rs 755 at 2.14 x FY11 adjusted book value," says Karvy's research report.

Source: Moneycontrol

Posted by Harsh at 07:21

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)
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.