RBL Bank shares climbed over 100% from 52-week low; can they cross Rs 300 mark?
RBL Bank share price today: RBL Bank stock hit a 52-week high of Rs 174.25 today, rising 4.62% intraday against the previous close of Rs 166.55 on BSE.
- Sep 18, 2023,
- Updated Sep 18, 2023 1:11 PM IST
Shares of RBL Bank have doubled from their 52-week low touched last year. The banking stock hit a 52-week low of Rs 108.50 on September 28, 2022. In the previous session, RBL Bank stock closed 2.01% higher at Rs 233.30 against the previous close of Rs 228.70 on BSE. The stock has surged 115% from its yearly low but it's still down 7.12% from its 52 week high. RBL Bank shares surged to a 52 week high of Rs 251.20 on July 27, 2023 on BSE.
RBL Bank stock has a one-year beta of 1.9. This signals the stock has very high volatility. A high-beta stock can rise much faster than the comparable index, but also decline much more steeply during corrections. In today's session, the stock opened flat at Rs 233.35. Market cap of the firm stood at Rs 13.925 crore.
Shares of RBL Bank are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The stock has gained 86.50% in a year and risen 28% in 2022. In six months, the stock has risen 64.54%. BOB Caps sees the RBL Bank stock hitting Rs 233 mark in a year. It has assigned a hold rating to the stock while stating that the upside is capped at current valuations.
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"Baking in sticky operational costs, we forecast a PPOP CAGR of 24% over FY23-FY25, mainly benefiting from a low base, and believe provisioning would be a drag on net profit. The stock is trading at 0.8x FY25E ABV, having rallied 40% over the past three months. Accounting for RBK's growth and profitability matrix, wherein we estimate muted ROA/ROE of 1%/9% each for FY24/FY25, upsides look capped at current valuations. We thus assume coverage with a HOLD rating and value the stock at 0.9x FY25E ABV for a target price of Rs 233, based on the Gordon Growth Mode," said the brokerage.
On the other hand, Centrum Broking expects the stock hit Rs 331 in a year. The brokerage stated that the current valuations (0.8x PB, 7x PE -1HFY26) offer enough margin of safety.
"We bake in strong numbers in advances, NII, and PAT, with CAGR of 23%/26%/36%, over FY23-26E. We believe that RBL is well-positioned to deliver average RoAA and RoAE of 1.1% and 12% over FY24-26, respectively. Current valuations (0.8x PB, 7x PE -1HFY26) offer enough margin of safety. Further, the long EPS downgrade cycle (which started from FY20) is finally bottoming out in our view. Looking forward to FY24-26, RBL will likely see the best earnings momentum in the sector with 36% EPS CAGR," said the brokerage while initiating coverage on the stock.
Brokerage Nirmal Bang expects the stock to hit the target of Rs 270 in a year. It has maintained a buy call on the banking stock.
"RBL Bank is on an improving earnings growth trajectory, driven by healthy growth, margin expansion and stable asset quality. We expect the bank to achieve RoA/RoE of 1.2%/10.9% by FY25-end. We maintain BUY with a target price (TP) of Rs 270(1x June'2025EABV)," said the brokerage.
The RBL stock has a Relative Strength Index (RSI) of 55.4. A value below 30 indicates that a stock is oversold and a value above 70 signals that the scrip is overbought. Hence, the stock has a neutral rating in terms of RSI.
The private sector lender reported a 43.2 per cent rise in net profit to Rs 288 crore for the first quarter ended June 2023, helped by lower provisions and higher interest income. Profit After Tax (PAT) also rose by 30 per cent on a quarter-on-quarter basis.
Operating profit climbed 22 per cent year-on-year and 9 per cent quarter-on-quarter to Rs 647 crore. The Mumbai-headquartered bank's total revenue increased 18 per cent year-on-year and 2 per cent quarter-on-quarter to Rs 1,932 crore.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Shares of RBL Bank have doubled from their 52-week low touched last year. The banking stock hit a 52-week low of Rs 108.50 on September 28, 2022. In the previous session, RBL Bank stock closed 2.01% higher at Rs 233.30 against the previous close of Rs 228.70 on BSE. The stock has surged 115% from its yearly low but it's still down 7.12% from its 52 week high. RBL Bank shares surged to a 52 week high of Rs 251.20 on July 27, 2023 on BSE.
RBL Bank stock has a one-year beta of 1.9. This signals the stock has very high volatility. A high-beta stock can rise much faster than the comparable index, but also decline much more steeply during corrections. In today's session, the stock opened flat at Rs 233.35. Market cap of the firm stood at Rs 13.925 crore.
Shares of RBL Bank are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The stock has gained 86.50% in a year and risen 28% in 2022. In six months, the stock has risen 64.54%. BOB Caps sees the RBL Bank stock hitting Rs 233 mark in a year. It has assigned a hold rating to the stock while stating that the upside is capped at current valuations.
ALSO READ: Stocks in news: Adani Energy Solutions, Vedanta, DB Realty, Sterlite Tech, Indian Oil and more
"Baking in sticky operational costs, we forecast a PPOP CAGR of 24% over FY23-FY25, mainly benefiting from a low base, and believe provisioning would be a drag on net profit. The stock is trading at 0.8x FY25E ABV, having rallied 40% over the past three months. Accounting for RBK's growth and profitability matrix, wherein we estimate muted ROA/ROE of 1%/9% each for FY24/FY25, upsides look capped at current valuations. We thus assume coverage with a HOLD rating and value the stock at 0.9x FY25E ABV for a target price of Rs 233, based on the Gordon Growth Mode," said the brokerage.
On the other hand, Centrum Broking expects the stock hit Rs 331 in a year. The brokerage stated that the current valuations (0.8x PB, 7x PE -1HFY26) offer enough margin of safety.
"We bake in strong numbers in advances, NII, and PAT, with CAGR of 23%/26%/36%, over FY23-26E. We believe that RBL is well-positioned to deliver average RoAA and RoAE of 1.1% and 12% over FY24-26, respectively. Current valuations (0.8x PB, 7x PE -1HFY26) offer enough margin of safety. Further, the long EPS downgrade cycle (which started from FY20) is finally bottoming out in our view. Looking forward to FY24-26, RBL will likely see the best earnings momentum in the sector with 36% EPS CAGR," said the brokerage while initiating coverage on the stock.
Brokerage Nirmal Bang expects the stock to hit the target of Rs 270 in a year. It has maintained a buy call on the banking stock.
"RBL Bank is on an improving earnings growth trajectory, driven by healthy growth, margin expansion and stable asset quality. We expect the bank to achieve RoA/RoE of 1.2%/10.9% by FY25-end. We maintain BUY with a target price (TP) of Rs 270(1x June'2025EABV)," said the brokerage.
The RBL stock has a Relative Strength Index (RSI) of 55.4. A value below 30 indicates that a stock is oversold and a value above 70 signals that the scrip is overbought. Hence, the stock has a neutral rating in terms of RSI.
The private sector lender reported a 43.2 per cent rise in net profit to Rs 288 crore for the first quarter ended June 2023, helped by lower provisions and higher interest income. Profit After Tax (PAT) also rose by 30 per cent on a quarter-on-quarter basis.
Operating profit climbed 22 per cent year-on-year and 9 per cent quarter-on-quarter to Rs 647 crore. The Mumbai-headquartered bank's total revenue increased 18 per cent year-on-year and 2 per cent quarter-on-quarter to Rs 1,932 crore.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.