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BUY calls on ICICI Bank and Dena Bank

November 3rd, 2011

KR Choksey Integrated Financial Solutions in its post-results analysis report on ICICI Bank has given a BUY call to the script. They say that the results are in-line with expectations and offer a favorable risk-reward.”At Rs 886, the stock is trading at 15x FY13 earnings and 1.3x FY12 core book, favorable risk reward in our view. We reiterate our BUY rating on the stock with target price of Rs 1162.”

Nirmal Bang on Q2 FY12 Result Update on Dena Bank has given a BUY call on the script. Dena Bank’s performance for Q2FY12 was above our estimates. The bank reported a net profit of Rs.193.6 crs in Q2FY12 resulting in a growth of 20.5% on a YoY basis and a QoQ increase of 15.2%. The bank witnessed marginal increase in gross NPAs resulting from shift to system based NPA recognition system. Dena Bank is currently trading at a very attractive valuation amongst the banking business space. At CMP, the stock is trading at 0.77x and 0.65x FY12E and FY13E Adj BVPS respectively. We maintain our BUY rating on the stock with a target price of Rs 116.

Entry Filed under: Equity Markets, Banks & NBFC