Beruflich Dokumente
Kultur Dokumente
g C ove ra ge 0 8 S e pte m b e r
t i n g C o ve ra ge 0 8 S e pte m b e r
rage 08 Septe m be r
Amongst the Private Banks we believe, ICICI Bank and HDFC Bank have attractive valuation. ICICI
Bank is trading at 11.9x and 10.1x its FY16 and FY17E EPS. Whereas, HDFC Bank is trading at 20.0x
and 16.2x its FY16 and FY17E EPS.
ber
ember
ptember
September
08 September
Having gone through a recent correction since last month, where the Bank Nifty was down 17% as
against a 12% decline in Nifty. Currently, most of the Banks are trading at the historical lower P/E
multiple, post correction the valuations of stocks in the Private Banking space looks attractive, with
limited downside from the current levels.
ge08 September
B a n k s Va l u a t i o n - I n
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Within in Public Sector Banks, SBI is trading at 8.5x and 7.1x its FY16 and FY17E EPS. Whereas, Bank
of Baroda is trading at 8.7x and 6.9x its FY16 and FY17E EPS.
Valuation Table:
Particulars
Private Banks:
HDFC Bank Ltd.
ICICI Bank Ltd.
Axis Bank Ltd.
Yes Bank Ltd.
IndusInd Bank Ltd.
The Federal Bank Ltd.
DCB Bank Ltd.
Public Sector Banks:
State Bank Of India
Bank Of Baroda
CMP
PE FY16E
PE FY17E
P/BV FY16E
P/BV FY17E
ROE FY16E
ROE FY17E
1,004
261
474
697
840
58
126
20.0
11.9
12.9
11.7
20.5
9.6
17.2
16.2
10.1
10.6
9.4
16.3
7.7
13.5
3.5
1.7
2.2
2.1
3.0
1.2
2.0
3.0
1.5
1.9
1.8
2.6
1.0
1.8
18.68%
14.90%
18.02%
19.72%
17.42%
12.65%
12.32%
19.83%
15.70%
18.88%
20.86%
16.84%
14.25%
13.92%
228
178
8.5
8.7
7.1
6.9
1.0
0.9
0.9
0.8
11.50%
11.04%
12.49%
12.52%
Source: Bloomberg
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C overage 08 Se ptembe r
g C ove ra ge 0 8 S e pte m b e r
t i n g C o ve ra ge 0 8 S e pte m b e r
01-Apr-09
01-Apr-10
01-Apr-11
Price
12x
01-Apr-12
15x
01-Apr-13
18x
21x
01-Apr-14
24x
01-Apr-15
600
400
200
0
01-Apr-09
01-Apr-10
01-Apr-11
Price
2x
01-Apr-12
2.5x
01-Apr-13
3x
3.5x
01-Apr-14
800
ber
800
1000
ember
1000
1200
ptember
1200
1400
P/BV - Forward
September
1400
1600
08 September
1600
P/E - Forward
ge08 September
HDFC Bank
rage 08 Septe m be r
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01-Apr-15
4x
Comment: Historically the share of HDFC Bank trades at 15x its EPS at the lower level and currently it is
trading at 16.2x its FY17E its EPS, which looks attractive.
ICICI Bank
P/BV - Forward
P/E - Forward
450
600
400
500
350
300
400
250
300
200
200
150
100
100
50
0
01-Apr-09
01-Apr-10
01-Apr-11
Price
4x
01-Apr-12
8x
01-Apr-13
12x
16x
01-Apr-14
20x
01-Apr-15
0
01-Apr-09
01-Apr-10
01-Apr-11
Price
0.5x
01-Apr-12
1x
01-Apr-13
1.5x
2x
01-Apr-14
01-Apr-15
2.5x
Comment: ICICI Bank bottom outs at sub levels of 9x its EPS at the lower level and currently it is trading at
an attractive level of 10.1x its FY17E its EPS.
Source: Company data, Nirmal Bang Research
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01-Apr-10
01-Apr-11
Price
Yes Bank
1200
1000
800
600
01-Apr-12
4x
8x
01-Apr-13
12x
16x
P/E - Forward
01-Apr-14
20x
01-Apr-15
01-Apr-09
01-Apr-10
01-Apr-11
Price
0.5x
01-Apr-12
1x
01-Apr-13
1.5x
2x
01-Apr-14
01-Apr-09
100
ber
100
200
ember
200
300
ptember
300
400
September
400
500
08 September
500
600
ge08 September
600
700
rage 08 Septe m be r
700
P/BV - Forward
P/E - Forward
800
C overage 08 Se ptembe r
Axis Bank
g C ove ra ge 0 8 S e pte m b e r
t i n g C o ve ra ge 0 8 S e pte m b e r
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01-Apr-15
2.5x
P/BV - Forward
1200
1000
800
600
400
400
200
200
Source:
data,01-Apr-11
Nirmal Bang
Research
01-Apr-09Company
01-Apr-10
01-Apr-12
01-Apr-13
Price
3x
6x
9x
12x
0
01-Apr-14
01-Apr-15
01-Apr-09
01-Apr-10
15x
01-Apr-11
Price
0.5x
01-Apr-12
1x
01-Apr-13
1.5x
2x
01-Apr-14
01-Apr-15
2.5x
IndusInd Bank
P/E - Forward
P/E - Forward
1200
1200
1000
1000
800
800
600
600
400
400
200
200
0
01-Apr-09
01-Apr-10
01-Apr-11
01-Apr-12
01-Apr-13
01-Apr-14
01-Apr-15
0
01-Apr-09
Price
4x
8x
12x
16x
01-Apr-10
01-Apr-11
01-Apr-12
01-Apr-13
01-Apr-14
01-Apr-15
20x
Price
4x
8x
12x
16x
20x
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10
01-Apr-09
01-Apr-10
01-Apr-11
Price
DCB Bank
200
150
100
50
01-Apr-09
01-Apr-10
4x
01-Apr-12
6x
01-Apr-13
8x
10x
P/E - Forward
01-Apr-14
12x
01-Apr-15
30
20
10
01-Apr-09
200
180
01-Apr-10
01-Apr-11
Price
01-Apr-12
0.8x
1x
01-Apr-13
1.2x
1.4x
01-Apr-14
1.6x
01-Apr-15
20
ber
30
40
ember
40
50
ptember
50
60
September
60
70
08 September
70
80
ge08 September
80
90
rage 08 Septe m be r
90
P/BV - Forward
100
P/E - Forward
100
g C ove ra ge 0 8 S e pte m b e r
Federal Bank
C overage 08 Se ptembe r
t i n g C o ve ra ge 0 8 S e pte m b e r
B a n k s Va l u a t i o n - I n
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P/BV - Forward
160
140
120
100
80
60
01-Apr-11
01-Apr-12
01-Apr-13
01-Apr-14
01-Apr-15
40
20
-50
0
-100
01-Apr-09
Price
4x
8x
12x
16x
01-Apr-10
20x
01-Apr-11
Price
01-Apr-12
0.5x
1x
01-Apr-13
1.5x
2x
01-Apr-14
01-Apr-15
2.5x
P/E - Forward
600
500
500
400
400
300
300
200
200
100
100
0
01-Apr-09
01-Apr-10
01-Apr-11
Price
01-Apr-12
3x
6x
01-Apr-13
9x
12x
01-Apr-14
15x
01-Apr-15
01-Apr-09
01-Apr-10
01-Apr-11
Price
01-Apr-12
3x
6x
01-Apr-13
9x
12x
01-Apr-14
01-Apr-15
15x
4|Page
0
Source:
Company data, Nirmal Bang Research
01-Apr-09
01-Apr-10
01-Apr-11
Price
4x
01-Apr-12
6x
8x
01-Apr-13
10x
01-Apr-14
12x
01-Apr-15
100
50
0
01-Apr-09
01-Apr-10
01-Apr-11
Price
0.5x
01-Apr-12
0.8x
01-Apr-13
1.1x
1.4x
01-Apr-14
150
ber
200
ember
50
250
ptember
100
300
September
150
350
08 September
200
400
ge08 September
250
P/BV - Forward
rage 08 Septe m be r
300
P/E - Forward
350
C overage 08 Se ptembe r
Bank of Baroda
g C ove ra ge 0 8 S e pte m b e r
t i n g C o ve ra ge 0 8 S e pte m b e r
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01-Apr-15
1.7x
Anupam Bafna
Research Associate
+91 22 3926 8186
anupam.bafna@nirmalbang.com
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ptember
September
08 September
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rage 08 Septe m be r
C overage 08 Se ptembe r
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Disclaimer:
Nirmal Bang Securities Private Limited (hereinafter referred to as NBSPL )is a registered Member of National Stock Exchange of India Limited,
Bombay Stock Exchange Limited and MCX stock Exchange Limited. NBSPL is in the process of making an application with SEBI for registering as
a Research Entity in terms of SEBI (Research Analyst) Regulations, 2014.
NBSPL or its associates including its relatives/analyst do not hold any financial interest/beneficial ownership of more than 1% in the company
covered by Analyst (in case any financial interest is held kindly disclose)
NBSPL or its associates/analyst has not received any compensation from the company covered by Analyst during the past twelve months. NBSPL
/analyst has not served as an officer, director or employee of company covered by Analyst and has not been engaged in market making activity of
the company covered by Analyst.
The views expressed are based solely on information available publicly and believed to be true. Investors are advised to independently evaluate
the market conditions/risks involved before making any investment decision.
This document, at best, represents Analyst opinion and is meant for general information only. NBSPL, its directors, officers or employees shall not
in any way be responsible for the contents stated herein. NBSPL expressly disclaims any and all liabilities that may arise from information, errors or
omissions in this connection. This document is not to be considered as an offer to sell or a solicitation to buy any securities.
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