Karvy Stock Broking has recommended a buy rating on Bank Of India with a price target of Rs 455 in its April 17, 2009 research report.
“In 4th QFY09, we expect the bank to record 24% (Y/Y) growth in deposits and 29% growth (Y/Y) in net advances and the bank’s NII is expected to grow by 34% (Y/Y) to Rs 16.3 billion. For FY09, we revise our earning estimates upward by 15% to Rs 31.5 billion to factor in higher NII growth and fee income and for FY10, we reduce our earning estimates downward by 18% to Rs 27.1 bilion to factor in lower business growth, pressure on margin and higher loan losses provisions. We decrease our target price by 5% to Rs 455. At current price, the stock quotes at 1.16x FY2010 adjusted book value; we rate the stock as a ‘BUY‘ with a price target of Rs 455 at 2.05x adjusted book value FY2010,” says Karvy Stock Broking’s research report.
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