factoring business

factoring business
City Union-Catch The Cub Young
Target Rs 36

City Union (CUB) is geared for a significant re-rating. With a tier-I ratio at 13 per cent and a sub 70 per cent C-D ratio, we expect the bank to focus on growing it's assets more on growing it's assets more aggressively over the next few years.factoring business With a loan book of a predominantly lower-duration, we also expect the asset side repricing benefits to begin accruing from Q3FY10 onwards.

Initiate BUY with a target of Rs 36, a 44 per cent upside from current levels (excluding a dividend yield of 5 per cent).factoring business

Under-owned by Institutions
With FII ownership at 12 per cent and Institutional ownership at less than 8 r cent, CUB offers a compelling Buy opportunity to Institutional players.
factoring business

Capital Infusion
During November 2009, CUB raised Rs 48 crore through a rights issue. Subsequent to the Rights Tier I Capital has risen to 13 per cent positioning the Bank for a near 30 per cent growth in FY11.
factoring business

Superior Return Ratios
CUBs return ratios are amongst the best in class among domestic banks, factoring capital infusion the ratios should rise even further.

factoring business
Valuation
At Rs 25 CUB trades at 1.2 and 1.1 FY10 and FY11 ABVPS, which is the lowest amongst private sector banks. The stock could easily trade upto 3 times FY11 ABVPS,factoring business which could give it an extraordinary target of Rs 36 in the short term and Rs 60 by end FY11.


Safe Harbor Statement:

factoring business
Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations,factoring business tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.
factoring business

Nothing in this article is, or should be construed as, investment advice.

factoring business






factoring business
[Non-text portions of this message have been removed]

__._,_.___
factoring business
Reply to sender | Reply to group
Messages in this topic (1)
Recent Activity: New Members 18
Visit Your Group Start a new topic
********Join our discussion forum********
http://bazaarlive.factoring business info


Switch to: Text-Only, Daily Digest ? Unsubscribe ? Terms of Use.
factoring business

__,_._,___.