DCB Bank share price in consolidation phase after hitting 52-week high 106 on NSE in November 2021. It showed some upside signals after hitting 52-week low in April 2022 67.85 at the end of March 2022. However, the stock further came under selling pressure in June 2022 and was on the verge of breaking its 52-week low made in March. However, the banking stock bounced back from its recent lows and today DCB share price is approx. 86 Epic Levels. HDFC Securities believes the stock may go up Over the long term, 2126 provides approximately 45 percent returns to its shareholders, at each level.
Shedding light on the fundamentals that can fuel dcb bank share priceHDFC Securities’ report said, “DCB Bank earnings were well ahead of our estimates, primarily driven by strong traction in credit growth (+17 per cent YoY) and lower credit costs (50 bps – yearly), Partially offset by higher OPEX intensity. While the gross decline moderated to around 8.3 per cent driven by Gold Loan and KCC portfolio (Q4FY22: 5.5 per cent), healthy upgrades/recoveries led to a marginal 10bps sequential improvement in GNPA, to 4.2 per cent Gone.
“Stress pool remains sticky (NNPA+ restructured book at around 8 per cent debt); however, management has improved collection efficiency and a granular and secured loan book (around 95 per cent). Stubborn stress pool and business throughput to drive With higher OPEX intensity, we see limited near-term leverage for the reflation to return ratio,” the brokerage said.
On its suggestion to positional investors with regard to the share price of DCB Bank, HDFC Securities’ report says, “We will reduce our FY23/FY24 earnings estimates by 7%/5% to factor in NIM moderation.” and maintain the ADD with the modified TP. 126.”
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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