Motilal Oswal is bullish on Yes Bank and has recommended buy rating on the stock with a target of Rs 327, in its November 30, 2009 reports.

“Despite 76% CAGR in assets over FY06-09, Yes Bank’s market share is a mere 0.55% as of September 2009. Rapid branch network expansion, acquisition of new customers and deepening of existing customer relationships would help ensure that its asset growth remains higher than industry. With likely capital raising in next one year (we have factored in USD 235 million at Rs 250 per share), tier-I CAR would improve to ~12% and support asset growth over the next 2-3 years. We expect loan CAGR of 37% and PAT CAGR of ~32% over FY09-12.”

“We expect RoA of 1.5%+ and RoE of 17%+ over the next three years, despite equity dilution. Given the superior return ratios, superlative growth and a competent management, we believe Yes Bank deserves premium valuations. The stock trades at 2.3x FY11E BV and 15.7x FY11E EPS. We initiate coverage with a Buy recommendation and a target price of Rs 327 (3x FY11E BV).”

Related posts:

1. Bank of Baroda : Buy @ 327 Fresh investments can be considered in the Bank of...
2. Motilal Oswal Financial Services Q3 FY10 : Net up 0.57% Motilal Oswal Financial Services is in marginal profit for...
3. Yes Bank, BUY call for target 60. Yes Bank is in retail business and increasing very rapidly....
4. Bank of India Bank of India Bank of India (BoI) is considered...
5. Bank of India : Buy @ 337 Banking Sector growth is very comfortable. BANK OF INDIA out-performar...

Related posts brought to you by Yet Another Related Posts Plugin.