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CUB Share Price Target
City Union Bank Ltd.
Sector: Banks
Sector: Banks
CUB Share Price *
199.9 +0.7 (0.35%)
* (quote may be delayed)
CUB Share Price Forecast - Consensus
| No. of reports in last year | 15 |
| No. of analysts | 8 |
| Average Consensus Forecast | 225.67 |
| Consensus Potential | 11.02% |
CUB Share Price Target - Broker Reports - 2019
Nirmal Bang
11-Aug-19
Price @ Call: 195.11
Target: 234
ACCUMULATE
No impact from concerns about the wider economy
City Union Bank (CUBL) reported 1QFY20 results with the key pointers being: (1) GNPA ratio moved up 39 bps QoQ to 3.34% but management retained prior slippage guidance of 1.75-2% for FY20 (2) Margin contracted 13 bps YoY to 4.11% and management guided for similar margin for FY20 plus or minus 20 bps (3) While loan growth dipped to 14% YoY, management reiterated loan growth guidance of 18-20% for FY20 (4) Management reiterated cost to income ratio of ~42% and RoA of ~1.5% for FY20 (5) There are incipient signs of management warming up to third party distribution fees (See comprehensive conference call takeaways on page 2 for significant incremental colour). We have revised our NII estimates by 0.0%/-1.8%, PPOP estimates by -0.4%/-3.2% and PAT estimates by -1.9%/-7.1% for FY20/FY21, respectively. We have retained Buy rating on CUBL, valuing the stock at 2.5x FY21E P/BV and revised our target price to Rs234 (from Rs248 earlier).
City Union Bank (CUBL) reported 1QFY20 results with the key pointers being: (1) GNPA ratio moved up 39 bps QoQ to 3.34% but management retained prior slippage guidance of 1.75-2% for FY20 (2) Margin contracted 13 bps YoY to 4.11% and management guided for similar margin for FY20 plus or minus 20 bps (3) While loan growth dipped to 14% YoY, management reiterated loan growth guidance of 18-20% for FY20 (4) Management reiterated cost to income ratio of ~42% and RoA of ~1.5% for FY20 (5) There are incipient signs of management warming up to third party distribution fees (See comprehensive conference call takeaways on page 2 for significant incremental colour). We have revised our NII estimates by 0.0%/-1.8%, PPOP estimates by -0.4%/-3.2% and PAT estimates by -1.9%/-7.1% for FY20/FY21, respectively. We have retained Buy rating on CUBL, valuing the stock at 2.5x FY21E P/BV and revised our target price to Rs234 (from Rs248 earlier).
ICICIdirect.com
9-Aug-19
Price @ Call: 195.11
Target: 240
BUY
The bank has consistently delivered healthy business growth along with keeping a tab on asset quality. CUB has guided at maintaining RoAs >1.5%+ and RoE ~15%, going ahead, on the back of healthy credit growth of 18- 20%, strong margins and controlled asset quality. Though, we remain cautious on MSME exposure from asset quality perspective, however, we continue to prefer CUB as it is well placed among regional players and comfortable on the capital front with tier-I ratio at 15%. CUB has historically traded at a premium to other regional banks due to better return ratios and a consistency in earnings. We maintain our BUY rating with unchanged target price of | 240 implying a multiple of 2.7x FY21E BV.
AnandRathi
8-Aug-19
Price @ Call: 193.9
Target: 226
ACCUMULATE
Core trends intact
The strong headwinds of rising costs and lower yields pushed down City Union’s NIM. However, with its asset quality more stable than its peers, sturdy capitalisation and focused SME and retail lending strategy, we expect its good profitability to endure in the medium term. We retain our Buy recommendation, with a lower TP of `226 (earlier `228).Our Aug’20 target of `226 is based on the two-stage DDM model. This implies a ~2.7x P/BV and ~3.0x P/ABV multiple on its FY21e book.Risks: Higher slippages, lower than-expected loan growth.
The strong headwinds of rising costs and lower yields pushed down City Union’s NIM. However, with its asset quality more stable than its peers, sturdy capitalisation and focused SME and retail lending strategy, we expect its good profitability to endure in the medium term. We retain our Buy recommendation, with a lower TP of `226 (earlier `228).Our Aug’20 target of `226 is based on the two-stage DDM model. This implies a ~2.7x P/BV and ~3.0x P/ABV multiple on its FY21e book.Risks: Higher slippages, lower than-expected loan growth.
Elara Capital
8-Aug-19
Price @ Call: 193.9
Target: 237
BUY
Change to Buy with a revised TP of INR 237
CUBK is well positioned to expand its credit book at a CAGR of 19% over FY19-21E coupled with a slight moderation in margin due to slow growth in CASA. On the asset quality, it is expected to post gross slippages and credit cost, well within guidance. As a result, we expect a ROA of 158bp in FY20E vs its past 10-year average of 155bp. We change our rating to Buy from Accumulate with a revised TP of INR 237 from INR 244 on 3.2x (from 3.4x) one-year forward P/ABV.
CUBK is well positioned to expand its credit book at a CAGR of 19% over FY19-21E coupled with a slight moderation in margin due to slow growth in CASA. On the asset quality, it is expected to post gross slippages and credit cost, well within guidance. As a result, we expect a ROA of 158bp in FY20E vs its past 10-year average of 155bp. We change our rating to Buy from Accumulate with a revised TP of INR 237 from INR 244 on 3.2x (from 3.4x) one-year forward P/ABV.
AnandRathi
11-Jul-19
Price @ Call: 200.1
Target: 228
BUY
Arihant Capital Markets
20-May-19
Price @ Call: 202.58
Target: 223
HOLD
We continue to maintain our positive stance on CUB, due to its sustainable performance. Our positive view on CUB is based on higher margins (best in banking sector), consistent superior return ratios (RoA: 1.64%, RoE: 15%) and strong CAR. We maintain our ‘Hold’ rating on the stock with a revised target price of Rs 223 based on P/ABV(x) of 2.8 (x) to its FY 21E ABV.
ICICIdirect.com
20-May-19
Price @ Call: 198.6
Target: 240
BUY
The bank has consistently delivered healthy business growth along with a tab on asset quality. CUB has guided at maintaining RoAs >1.5%+ and RoE ~15%, going ahead, on the back of healthy credit growth of 18-20%, stable margins and controlled asset quality. We continue to prefer CUB as it is well placed among regional players and comfortable on the capital front with tier- I ratio at 15%. CUB has historically traded at a premium to other regional banks due to better return ratios and a consistency in earnings. We maintain our BUY rating and target price of Rs 240 (earlier Rs 225) valuing at a multiple
HDFC Securities
15-Apr-19
Price @ Call: 198.74
Target: 236
BUY
Geojit Financial Services
8-Feb-19
Price @ Call: 189
Target: 168
REDUCE
Nirmal Bang
2-Feb-19
Price @ Call: 189.49
Target: 237
BUY
HDFC Securities
1-Feb-19
Price @ Call: 189.49
Target: 236
BUY
ICICIdirect.com
31-Jan-19
Price @ Call: 191.79
Target: 225
BUY
Axis Direct
8-Jan-19
Price @ Call: 192.96
Target: 228
BUY
CUB Share Price Target - Broker Reports - 2018
ICICIdirect.com
13-Nov-18
Price @ Call: 165.03
Target: 200
BUY
HDFC Securities
5-Nov-18
Price @ Call: 169.15
Target: 227
BUY
Geojit Financial Services
28-Aug-18
Price @ Call: 190.49
Target: 186
REDUCE
Cholamandalam Securities
10-Aug-18
Price @ Call: 178.1
Target: 203
BUY
ICICIdirect.com
9-Aug-18
Price @ Call: 176.25
Target: 200
BUY
Arihant Capital Markets
9-Aug-18
Price @ Call: 176.25
Target: 202
ACCUMULATE
HDFC Securities
9-Aug-18
Price @ Call: 176.25
Target: 210
BUY
AnandRathi
9-Aug-18
Price @ Call: 176.25
Target: 211
BUY
ICICIdirect.com
10-Jul-18
Price @ Call: 187.25
Target: 200
BUY
HDFC Securities
17-Apr-18
Price @ Call: 163.27
Target: 210
BUY
Geojit Financial Services
8-Mar-18
Price @ Call: 164.05
Target: 152.73
REDUCE
CUB Share Price Target - Broker Reports - 2017
HDFC Securities
11-Dec-17
Price @ Call: 162.73
Target: 195.45
BUY
ICICIdirect.com
15-Nov-17
Price @ Call: 147.36
Target: 163.64
BUY
ICICIdirect.com
30-May-17
Price @ Call: 136.36
Target: 152.89
BUY
HDFC Securities
30-May-17
Price @ Call: 136.36
Target: 147.93
BUY
Geojit Financial Services
10-Mar-17
Price @ Call: 138
Target: 162
BUY
Axis Direct
17-Feb-17
Price @ Call: 150
Target: 166
HOLD
Sushil Finance
16-Feb-17
Price @ Call: 153
Target: 168
HOLD
ICICIdirect.com
10-Feb-17
Price @ Call: 151
Target: 166
BUY
HDFC Securities
9-Feb-17
Price @ Call: 157
Target: 175
BUY
Arihant Capital Markets
9-Feb-17
Price @ Call: 150
Target: 173
BUY
CUB Share Price Target - Broker Reports - 2016
IIFL
29-Dec-16
Price @ Call: 129.3
Target: 156
BUY
ICICIdirect.com
11-Nov-16
Price @ Call: 150
Target: 166
BUY
Motilal Oswal
25-May-16
Price @ Call: 105
Target: 123
BUY
Arihant Capital Markets
24-May-16
Price @ Call: 103.08
Target: 116
ACCUMULATE