Bank of America Merrill Lynch recommends buy on IndiaBulls Financial Services

BoAML (Bank of America Merrill Lynch) has recommended buy on IBFSL (IndiaBulls Financial Services) with Rs 400 target.

BoAML like IBFSL because of clear earnings visibility driven by volume growth, with upside risks to margins driven by rate cuts. Moreover, rate cuts could also spur demand for retail loans, which could further enhance the earnings profile. This visibility of earnings growth sustaining is also supported by high comfort on asset quality and being very well capitalized.

Indiabulls Financial (IBFSL) has delivered a return of +80% in last one year, amongst the best returns within financials. This is on back of sustained earnings performance, with quality. However, BoAML believe that there is room for further upside and hence we reiterate our Buy stance and raise PO to Rs400 (from Rs300).

Source : Equity Bulls

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