Stock tip: Buy RBL Bank shares for 23 pct gains in 12 months, say experts
RBL Bank fundamentals suggest upside potential of near 23 per cent and the RBL Bank share price may show Rs 834/stock levels in 12 months, say market experts.
RBL Bank stock is one of the strong shares that an investor can think of buying in the current market scenario, say share market experts. Dalal Street experts are of the opinion that strong fundamentals of the RBL Bank counter suggest upside potential of near 23 per cent and the RBL bank share price may show Rs 834/stock levels in the long-term perspective. Currently, the RBL Bank share price is oscillating around Rs 676/share levels.
Deepak Kumar, Research Analyst at Narnolia Financial Advisors said, "RBL Bank Reported the PAT growth of 39 per cent YoY led by strong NII growth of 48 per cent with NIM expanding 25 bps/11bps on YoY/QoQ due to higher yield on advance lead by MCLR reset and improved mix towards retail segment." Giving details about the fundamentals of the RBL counter Deepak Kumar further said that other income of the company continued its growth momentum rising 31 per cent YoY to Rs 409 Crore driven by the growth of 44 per cent in the core fee income.
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"Assets Quality remained stable, however, the agri portfolio continues to give pain. Slippages at the end of Q4FY19 stood at Rs 206 Cr (with 33 per cent agri portfolio) as compared to 211 Crore in the third quarter of FY19. GNPA stood flat YoY at 1.38 per cent while the NNPA improved by 9 bps YoY. Provisions for the quarter increased to Rs 200 Crore against 113 Crore in the fourth quarter of FY18," said Deepak Kumar.
Talking about the strong fundamentals of RBL Bank, a detailed research report by the Yes Securities says, "Ramping-up core profitability, accelerated franchise progress and a large capital raise announced; robust earnings growth over FY18-21 suggests an upside potential in the counter."
On the suggestion to the stock market investors in regard to the RBL Bank counter, Deepak Kumar added, "Strong fundamentals of the counter suggest upside potential of near 23 per cent and the counter may show Rs 834/stock levels in the long-term perspective." Generally, long-term perspective means a period of 12 months."