Please Share::
India Equity Research Reports, IPO and Stock NewsVisit http://indiaer.blogspot.com/ for complete details �� ��
Bank of India
Investment case: We are cautious on Bank of India as the bank’s exposure to
potentially stressed sectors is high compared to the other banks under our
coverage. Its volatile loan recovery trends and provisioning coverage of around
59% do not provide comfort on its ability to manage the potential stress ahead.
We expect loan loss provisioning to increase from 66bp in FY11 to 95bp in
FY12-13. We forecast an earnings CAGR of 5.6% in FY11-13.
Valuation: We value the stock using a residual income method. Our price target
implies 0.9x FY12E book and 6.7x FY12E earnings.
2012 Catalysts: We believe a sustained economic slowdown and higher loan
restructuring could pose further downside risk to the share price.
read details and other companies in list (click link below)
UBS India – Outlook 2012 ::Most & Least Preferred Stock Ideas for 2012
No comments:
Post a Comment