The DCB share price is in the base building phase since the beginning of June 2022. However, the banking stock has given some bounce in the last few sessions and Axis Bank Securities believes that the banking stock may continue to attract buyers’ interest every fall over the long term. , DCB share price may go up, says brokerage report 115 each level. DCB share price is around today 75 means that the brokerage is expecting an increase of around 55 per cent in this banking stock.
to speak on dcb bank share price Outlook, the brokerage said, “Despite primarily operating in the self-employed segment, DCB has been able to manage asset quality stress quite well. Collections have been conducted well and are likely to sustain the trend.” With the Reserve Bank of India, the restructured ledger shows signs of moderation in credit costs going forward. Positive trend in terms of a strong recovery pipeline and reduction in slippage will help in improving asset quality. With this approach, growth in the balance sheet and improvement in the return ratio should increase valuations for DCBs.”
Highlighting the key financial performance of DCB Bank, Axis Securities The bank’s focus on maintaining asset quality and improving collections, as well as a cautious approach to growth, slowed its disbursements, and resulted in growth, the research report said. Simultaneously, DCB picked up momentum in both advances and deposits. Growth remained sluggish at 6% YoY due to higher NII slippage and higher liquidity load on returns. However, this was partly driven by 46bps improvement in CoF on account of a benign interest rate environment. Thus, NIM remained largely stable at 3.56% in FY22, which were further supported by higher recovery in Q4FY22. While fee income growth remained healthy at 22% YoY, lower Treasury income contributed to non-interest Impacted earnings which remained flat YoY.
On the suggestion of positional investors with regard to the shares of DCB Bank, Axis Securities said, “We retain our estimates and maintain our buy recommendation on the stock with the target price. 115/share.”
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.