Reputed brokerage firm Motilal Oswal and Arihant Capital Are Bullish On Andhra Bank. While Motilal Oswal has set a price target of Rs 120 on the stock, Arihant Capital has set a target of Rs 90. The stock last closed at Rs 76 on the National Stock Exchange.
"With clarity emerging on the farm loan waiver scheme and management's focus on recoveries, we believe earnings would improve gradually going forward (INR5b+ of interest write-back and upgrade/recoveries of INR5-6b Agri related NPAs). We expect RoA/RoE to improve to 0.7%/14% by FY17E led by normalized tax rate and healthy margins. Maintain Buy with a target price of Rs 120," Motilal Oswal has stated in its report.
Arihant Capital on the other hand had this to say. "Clarity on farm loan waiver, moderating slippages and zero restructuring signals positive for bank. We recommend to Accumulate the stock with a price target of Rs 90 based on 0.9x P/ABV FY16E."