Bank of Maharashtra - 3QFY2013 Result Preview - Angel Broking

Bank of Maharashtra (CMP: Rs.59 / TP: Rs.64 / Upside: 7.9%)

Bank of Maharashtra is scheduled to announce its 3QFY2013 results today. We expect the bank to report a 13.9% yoy growth in Net Interest Income to Rs.735cr. Growth in non-interest income is expected to be moderate at 12.6% yoy to Rs.169cr. Operating expenses are expected to increase at a higher pace of 28.5% yoy to Rs.475cr. While, provisioning expenses are expected to increase by 7.2% yoy, tax expenses are expected to decline by 36.3% yoy, which would aid 12.6% yoy growth in net profit to Rs.153cr. At the CMP, the stock is trading at 0.7x FY2014E ABV.

We recommend Accumulate rating on the stock, with a target price of Rs.64.

Source : Equity Bulls

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