DCB Bank Ltd.

NSE: DCBBANK | BSE: 532772 | ISIN: INE503A01015 | Industry: Banks
| Risky Value
125.4900 0.74 (0.59%)
NSE Aug 12, 2025 15:31 PM
Volume: 1.1M
 

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DCB Bank Ltd.
19 Apr 2019
125.49
0.59%
HDFC Securities
Despite macro challenges (Demon and GST), DCBB fulfilled its almost prophetic guidance of 1% RoAA. While loan growth disappointed in 4QFY19 (16%), stable margins, improving op-lev and asset quality impressed. With its core growth engine intact, we believe DCBB has the potential to grow at faster rates. Upgrade earnings by ~12/16% for FY20/21E. A significant improvement in resulting efficiencies (anticipated) drives up our RoAA estimate to ~1.2% by FY21E. 4QFY19 marked the fulfillment of dual commitments by DCBB, viz. (1) Achievement of 1% RoAA in FY19A, (2) A meaningful improvement in operating efficiency (C-I ratio lowest in 20 qtrs). We maintain BUY with a TP of Rs 228 (2x FY21E ABV of Rs 114).
DCB Bank Ltd. has an average target of 174.57 from 7 brokers.
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