Syndicate Bank - Q4FY13 Result Preview - Angel Broking

Syndicate Bank is scheduled to announce its 4QFY2013 results today. We expect the bank to report a moderate 8.1% yoy growth in Net Interest Income to Rs. 1,446cr. Growth in non-interest income is also expected to be moderate at 5.7% yoy to Rs. 317cr. Operating expenses are expected to increase by only 2.1% yoy to Rs. 863cr. While, provisioning expenses are expected to decline by 8.4% yoy, tax expenses are expected to remain negative at Rs. 43cr, as against Rs. 61cr in 4QFY2012. Consequently, net profit is expected to grow by 43.9% yoy to Rs. 445cr. At the CMP, the stock is trading at 0.6x FY2015E ABV.

We recommend Accumulate rating on the stock, with a target price of Rs. 130.

Source : Equity Bulls

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