NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Nirmal Bang Report
A rerating opportunity is emerging. As confidence builds around the sustainability of returns and the durability of the transformed franchise, domestic brokerage firm Nirmal Bang believes South Indian Bank is well positioned for a valuation rerating.
The brokerage has initiated coverage with a on the stock with a Buy recommendation and has set a target price of Rs 62, based on its excess return framework, implying 1.04 times Jun-28E forward book value.
Nirmal Bang believes South Indian Bank’s earnings profile is transitioning from turnaround-driven profitability to structurally-sustainable returns.
Benign ~50 basis points credit costs, gradual net interest margin recovery to above 3%, robust loan growth of ~15% (led by granular, higher-yielding segments), improving fee income, and positive operating jaws should enable the bank to sustainably deliver around 1.2% ROA through the cycle.
Unlike the previous earnings cycle, current returns are supported by a cleaner balance sheet, stronger liability franchise, enhanced technology capabilities, and a more resilient operating model.
Click on the attachment to read the full report:
ALSO READ: BEL To HAL: Defence Stocks In Focus After Rs 52,000-Crore DAC Approval — Check Target Prices
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence,
Sharp Market Insights,
Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
