DCB Bank Ltd.

NSE: DCBBANK | BSE: 532772 | ISIN: INE503A01015 | Industry: Banks
| Risky Value
122.2300 0.06 (0.05%)
NSE Aug 25, 2025 15:31 PM
Volume: 1.2M
 

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DCB Bank Ltd.
17 Jul 2019
122.23
0.05%
HDFC Securities
While DCBB's asset quality slip in 1Q exceeded seasonal trends, our faith is not fully shaken, given management's conservative stance and stellar record across cycles. Our earnings estimates fall by ~8% over FY20-21E to factor in slower growth and NIM compression, with no change in asset quality trajectory. However, valuations are ample at 2.1x FY21E ABV (RoAA ~1.1%). DOWNGRADE to NEUTRAL, despite DCBB's multi-year growth/compounding promise. Our stance is premised on (1) The substantial jump in stress (GNPAs up 8% QoQ), (2) Growth slowing, (unexpectedly) to 13/2% on a small base, and (3) NIM compression 11bps QoQ, that can linger. We are constrained to downgrade DCB Bank (DCBB) to NEUTRAL with a TP of Rs 234 (2x Jun-21E ABV of Rs 117) post a disappointing show in 1QFY20.
DCB Bank Ltd. is trading below all available SMAs
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