If you are into IT/Software Sector or say in any sector and can bring overseas contracts (or any domestic business related to the software sector), with a stress on Digital Marketing/Content Writing/Website Development/Reputation Management/SEO/SMM, etc, then you can join me as a partner or associate.
We will give you, the business development portfolio and pay you handsome amounts for your efforts. It does not matter, in which part of the world you are, as long as you can bring businesses. If you are interested, please send me at mail at: email@example.com.
Wednesday, November 06, 2013
Allahabad Bank Ltd
Price target: Rs.109
Current market price: Rs.94
Allahabad Bank reported a net profit of Rs275.8 crore for Q2FY2014. The same was higher than our estimate largely due to higher recoveries from the written-off accounts (Rs468 crore vs Rs127 crore in Q2FY2013) leading to a 130.4% year-on-year (Y-o-Y) growth in the non-interest income.
Allahabad Bank’s results were better than expected though the concerns on the NIM and asset quality persist. In view of the higher non-interest income growth in Q2FY2014, we have revised our estimates and expect the bank’s earnings to grow at a compounded annual growth rate (CAGR) of 18.1% YoY. We also revise the price target to Rs109 (0.75x FY2015 adjusted book value). Though the valuation seems attractive at 0.65x FY2015 book value, but the subdued return ratios (return on asset [RoA ]of 0.6%), the equity dilution due to the capital infusion by the government and the volatility in the asset quality remain concerns. We maintain our Hold rating on the stock.