Oriental Bank of Commerce - Cautious approach continues - Kotak

Our recent interaction with the management indicated (1) mixed trends on loan impairment as stress remains high in the corporate segment but better trends visible elsewhere, (2) growth is a big challenge and (3) operating expenses ratio may not show medium-term improvement as retirement expenses remain high. Despite the recent strong rally in the stock, we find valuations inexpensive. Maintain ADD with TP at Rs. 240 (from Rs. 170 earlier).

Source : Equity Bulls

Keywords