DCB Bank Ltd. share price target and research reports

Latest analyst research reports with target prices and PDF download for DCBBANK, BSE:532772 DCB Bank Ltd.

DCB Bank Ltd.

25 Jan 2020

131.80

2.50%

PPoP in line; higher provisions drive earnings miss

Neutral: DCB Bank Ltd.

Target

Motilal Oswal

25 January 2020 DCBB reported in-line 3QFY20 operating performance, while higher provisions dragged earnings growth (5% miss), led by greater stress in a few business segments. Loan growth moderated further on continued sluggishness in the corporate banking portfolio. Maintain DCBB reported PAT of INR967m (5% miss), impacted by lower treasury gains and higher provisions (36% QoQ increase). NII growth slowed to 10% YoY to INR3.2b (in-line) due to moderation in loan growth (11% YoY) while margins improved 4bp QoQ to 3.71%, aided by reduction in cost of deposits. Other income declined 1.5% YoY (8% QoQ decline), mainly led by muted treasury gains of INR70m (72% QoQ decline), while core fee growth was also subdued at 5% YoY. Loan growth moderated further to 11% YoY, primarily led by continued sluggishness in the corporate banking portfolio; it now forms 12% of the book (v/s 15% in 3QFY19).

DCB Bank Ltd. is trading above its 200 day SMA of 126.8

DCB Bank Ltd.

13 Jan 2020

131.80

2.50%

Pick of the Week:13 JAN 2020

Buy: DCB Bank Ltd.

Axis Direct

...

DCB Bank Ltd. is trading below its 100 day SMA of 135.8

DCB Bank Ltd.

01 Nov 2019

131.80

2.50%

DCB BANK- 2QFY20

Buy: DCB Bank Ltd.

Target

Chola Wealth Direct

Sector: Banking /Mid-Cap | Earnings Update 2QFY20 Background: DCB Bank Limited (formerly Development Credit Bank Limited) has a deposit base of INR 293bn and advances of INR 248bn at the end of 2QFY20, making it the smallest bank in the listed private sector space, including both new and old generation private sector banks. Promoter group the Aga Khan Fund for Economic Development (AKFED) & Platinum Jubilee Investments holds ~15% stake. DCB services entail Corporate Banking - 12%, SME -12%, Agriculture 20%, Mortgages 41%....

DCB Bank Ltd. is trading above its 200 day SMA of 126.8

DCB Bank Ltd.

22 Oct 2019

131.80

2.50%

DCB Bank: Q2FY20 Result Review

Buy: DCB Bank Ltd.

Recommendation Target

IDBI Capital

DCB Bank's net advances growth moderated further to 12% vs 13% sequentially. NII grew by 11% YoY while PAT grew by 24% YoY led by higher other income (up 38% YoY). Loan growth ex-corporate segment is ~16% (19% in Q1FY20) vs. overall growth of 12%. Cost-to-income ratio on a QoQ basis has declined by 195bps on account of stable Opex sequentially. Fresh slippages continue to remain high at 1.6bn up 10% QoQ led by Mortgages/SME and CV portfolio. We maintain ACCUMULATE rating with a new TP of...

Number of FII/FPI investors increased from 133 to 143 in Jun 2025 qtr.

DCB Bank Ltd.

22 Oct 2019

131.80

2.50%

DCB Bank

Buy: DCB Bank Ltd.

Target

ICICI Securities Limited

NII came in line with our estimates at ~| 313 crore, up ~11% YoY, on the back of lower credit growth & steady margin sequentially. Other income growth came in higher than our expectation at ~38% YoY to ~| 101 crore led by multifold growth in trading income & steady growth of 6% QoQ in CEB book, which was at ~| 58 crore in Q2FY20 (~| 55 crore in Q2FY20). Accordingly, operating profit was at | 185 crore, up 26% YoY. Provision continued to remain elevated at | 43 crore, up 36% YoY. The bank also revalued deferred tax asset during the quarter leading to additional...

DCB Bank Ltd. is trading below its 100 day SMA of 135.8

DCB Bank Ltd.

22 Oct 2019

131.80

2.50%

DCB - 2QFY20 Result Update

Buy: DCB Bank Ltd.

Recommendation

Reliance Securities

A Weak Quarter; Performance Likely to Improve in 2HFY20 DCB Bank has delivered a weak performance in 2QFY20 led by elevated annualised slippages of 2.7% along with continued pressure on NIM (-25bps YoY) and weak loan growth (+12% YoY). PAT grew by 13% YoY (marginally ahead of our estimate), largely aided by higher treasury gains. Gross NPAs increased by 13bps QoQ and 25bps YoY, with rise in segmental NPAs across CV, MSME, mortgage and gold portfolio. CASA grew by a muted 7% YoY, though growth in retail deposits stood at healthy 26% YoY. The Management's endeavor to further granularise its deposit profile should aid the Bank's NIM over the longer-term. We believe unless the advances...

Number of FII/FPI investors increased from 133 to 143 in Jun 2025 qtr.

DCB Bank Ltd.

21 Oct 2019

131.80

2.50%

DCB Bank (2QFY20): Slippery Slope. Maintain BUY

Buy: DCB Bank Ltd.

Recommendation Target

HDFC Securities

Yet again, we are compelled to reduce our estimates for DCBB over FY20-22E, as we build slower loan growth and higher slippages. These do not worry us and we like DCBB's relatively conservative approach. Sustainability of oplev improvement seen this qtr (key for RoAA expansion) and the NIM impact of linking of fresh retail loans to external benchmarks, will be watched for. Maintain BUY with a TP of Rs 243 (2 X Sep-21E ABV of Rs 122), especially given the recent correction. DCBBs 2QFY20 disappointed with broad-based asset quality deterioration while sustained cost control and stable margins were silver linings. MAINTAIN BUY with a TP of Rs 243.

DCB Bank Ltd. is trading above its 200 day SMA of 126.8

DCB Bank Ltd.

18 Jul 2019

131.80

2.50%

DCB Bank : Q1FY20 Result Review

Accumulate: DCB Bank Ltd.

Recommendation Target

IDBI Capital

DCB's Q1FY20 numbers have overall come in weak and quite below our expectation. NII and PAT growth remained sluggish at 11.5/16.5% YoY vs. our expectation of +15/+24%. Loan growth ex-corporate segment is ~19% vs. overall growth of 13%. Interest expenses were a drag on the topline due to fixed rate refinance being garnered from NABARD and SIDBI. Cost-to-income ratio on a QoQ basis has increased by 370bps on account of salary hikes given. Over FY17-19, loan growth ex-corporate segment has been at 21%-27% which the management now expects at Q1 level of ~19% for FY20. Further, management has also highlighted risk of increased corporate slippages in the...

Number of FII/FPI investors increased from 133 to 143 in Jun 2025 qtr.

DCB Bank Ltd.

18 Jul 2019

131.80

2.50%

EARNINGS UPDATE-DCB BANK 1QFY20

Buy: DCB Bank Ltd.

Target

Chola Wealth Direct

Sector: Banking /Mid-Cap | Earnings Update 1QFY20 Background: DCB Bank Limited (formerly Development Credit Bank Limited) has a deposit base of INR 287bn and advances of INR 241bn at the end of 1QFY20, making it the smallest bank in the listed private sector space, including both new and old generation private sector banks. Promoter group the Aga Khan Fund for Economic Development (AKFED) & Platinum Jubilee Investments holds ~15% stake. DCB services entails Corporate Banking - 13%, SME -12%, Agriculture 20%, Mortgages ...

Number of FII/FPI investors increased from 133 to 143 in Jun 2025 qtr.

DCB Bank Ltd.

17 Jul 2019

131.80

2.50%

DCB Bank (1QFY20): Stumble, not yet a fumble Downgrade to NEUTRAL

Neutral: DCB Bank Ltd.

Recommendation Target

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. has an average target of 174.57 from 7 brokers.

Is DCB Bank Ltd. worth buying?

338 Votes:

Buy 81.66%

Sell 11.24%

Hold 7.1%

RESEARCH REPORTS

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