2 Dividend Bank Stocks To Buy After Healthy Q4 As Recommended By Prabhudas Lilladher

Prabhudas Lilladher in its brokerage report dated April 26, 2024 recommended traders two bank stocks after healthy Q4 results. These two bank stocks are IndusInd Bank and DCB Bank. The analyst has assigned buy call to DCB Bank with target price of Rs 180 apiece and gave buy call to IndusInd Bank with target price of Rs 1800 per share. IndusInd declared a dividend of Rs 16.5/share and DCB Bank announced a dividend of Rs 1.25 per share, respectively. More details below:

Buy IndusInd Bank Share: According to Prabhudas Lilladher, "IIB saw a stable quarter as core PPoP was largely in-line. Higher fees and lower opex were offset by softer NIM at 4.69% (PLe 4.83%). NIM decline QoQ was led by higher funding cost attributable to dearer external borrowings that replaced a bulky deposit outflow. Hence LCR reverted back to adequate level of 118%. We slightly increase TP to Rs 1,800 from Rs 1740. Retain BUY." NII growth was higher at 15.1% YoY. Other Income grew by 16.3% YoY led by higher fee income and treasury. Opex grew 25.6%YoY due to slightly higher other expenses, added the analyst.

IndusInd Bank Share Performance: Last trading price of IndusInd Bank share on BSE is Rs 1445.85 per share with intraday fall of 3.36%. The 52-week high price of IndusInd Bank stock on BSE is Rs 1694.35 apiece (as on 15/01/2024) and 52-week low price is Rs (as on 5/5/2023), respectively. The bank has a market cap of Rs 1,12, 533.39 crore. The PE of IndusInd Bank is 12.99. IndusInd Bank shares declined 9.65% year-to-date, soared 27% in last 1-year, and gained 47% in last 2-years. In last 3-years, IndusInd Bank stock offered return of 68%.

IndusInd Bank Recommended Dividend: Board of Directors of the bank also recommended a dividend of Rs 16.5 per equity share of Rs 10 each fully paid up out of the net profits for the year ended March 31, 2024, subject to the approval of shareholders at the ensuing Annual General Meeting (AGM).

Buy DCB Bank Share: The brokerage house said, "DCBB saw a strong quarter with beat on all fronts. Core PPoP was higher to PLe by 12.8% led by better NII and fees while GNPA too declined by 20bps QoQ to 3.2% driven by reduction in slippages. Reported NIM, that had fallen sharply by 21bps QoQ in Q3'24 to 3.48%, normalized to 3.62% due to better loan mix, collection efficiency, liquidity management and repricing of loans."

As we roll forward to Mar'26, our TP increases to Rs180 from Rs160. Retain 'BUY', asserted the analyst.

DCB Share Performance: Current market price of DCB Bank Limited share on BSE is Rs 138.80 per share with intraday gain of 1.72%. The 52-week high price of DCB Bank share on BSE is Rs 163.40 apiece (as on 08/01/2024) and 52-week low price is Rs 101.35 per share (as on 27/04/2023), respectively. The bank has a market cap of Rs 4,342.39 crore. The PE of the bank is 8.28. DCB Bank shares offered 15% return in last 1-week only, fell 4% YTD, gained 35% in last 1-year, and zoomed 71% in last 2-years. In last 5-years, DCB Bank stock declined 35%.

DCB Bank Recommended Dividend Too: The Board of Directors of the Bank at its meeting held today i.e. April 24, 2024 also recommended a dividend of Re.1.25/- (Rupee One and Paise Twenty Five only) per equity share of face value Rs.10/- each of the Bank, subject to requisite approvals. The Board of Directors fixed the record date for determining the eligibility of Members entitled to receive dividend on equity shares as Friday, May 10, 2024.

Disclaimer:

The stocks have been picked from the brokerage report of Prabhudas Lilladher. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.