Fundamental Call On May25, 09: Buy Indian Overseas Bank
Fundamental Call on May25, 09: By Praveen Kr sevak
Co Name:IoB (Indian Overseas Bank) Reco: Buy
CMP: Rs 85-88 (Buy in small Quantity at current level)
Best Buy level: Dip Around Rs 70 (accumulate at this level)
Target Price: Rs 98 (1-2 month), Rs 157 (6-12 months)
Investment Rational:
1. In Q4 of FY 09, IoB has registered 22% increase in its operating income and 5.37% increase in its net profit.
2. In the FY09, It has registered 10% rise in Net Profits and had come up with recoveries in its bad debts, which causes it profit to be up by this amount.
3. In a First of its kind deal, EXIM Bank and IoB have come together to co-finance Akshay Katrina Starer De Dhana Dhan produced by Venues Records and directed by Priyadarsan. The movie is expected to have a budget of Rs 70 cr and EXIM would give Rs 15 cr and IoB would give Rs 10 cr at a rate of 12.5-13%.
4. It is currently tradind at a PE multiple of 3.7 and PB of 0.80. It is expected to see Rs 157 level at a PE multiple of 6X at the EPS(E) Rs 24.5 of FY 10.
Co Name:IoB (Indian Overseas Bank) Reco: Buy
CMP: Rs 85-88 (Buy in small Quantity at current level)
Best Buy level: Dip Around Rs 70 (accumulate at this level)
Target Price: Rs 98 (1-2 month), Rs 157 (6-12 months)
Investment Rational:
1. In Q4 of FY 09, IoB has registered 22% increase in its operating income and 5.37% increase in its net profit.
2. In the FY09, It has registered 10% rise in Net Profits and had come up with recoveries in its bad debts, which causes it profit to be up by this amount.
3. In a First of its kind deal, EXIM Bank and IoB have come together to co-finance Akshay Katrina Starer De Dhana Dhan produced by Venues Records and directed by Priyadarsan. The movie is expected to have a budget of Rs 70 cr and EXIM would give Rs 15 cr and IoB would give Rs 10 cr at a rate of 12.5-13%.
4. It is currently tradind at a PE multiple of 3.7 and PB of 0.80. It is expected to see Rs 157 level at a PE multiple of 6X at the EPS(E) Rs 24.5 of FY 10.
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