Dalal Street Investment Journal — July 10-23, 2017

62 DALAL STREET INVESTMENT JOURNAL I JULY 10 - 23, 2017 DSIJ.in^

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Investment Horizon

Query-Specific

Readers are requested to send only one query at a time so that more readers get a chance. For complaints regarding non-receipt of

dividend, bonus, rights and other matters, investors may write to http://www.investor.sebi.gov.in

Company Name:

Query:

Name:

Address:

E-mail:

Vol. No. 31 No. 17

Send in your queries:

DSIJ Pvt. Ltd.

C-305, 3rd Floor, Trade Center,

North Main Road, Near Axis Bank,

Opp. Lane No. 6, Koregaon Park,

Pune - 411001

Email:[email protected]

DEMOCRATIZING WEALTH CREATION

I purchased 1200 shares of Bank of Baroda @

`186 for six months. Please suggest.

• Subhash Sethiya

I have recently bought IDFC Bank at `57 per share.

Is IDFC Bank Ltd a good buy for long term?

• Ajay Kapare

IDFC BANK BANK OF BARODA

BSE/NSE Code 539437 / IDFCBANK

Face Value ` 10

CMP `62.30

52-Week High 83.45 / Low45.50

Your Current

Profit/(Loss)

9.29 per cent

BSE/NSE Code 532134 / BANKBARODA

Face Value ` 2

CMP `160.85

52-Week High 202.45 / Low 136

Your Current

Profit/(Loss)

(15.63 per cent)

Readers are requested to send only one query at a time so that more readers get a chance. For complaints regarding non-receipt of

dividend, bonus, rights and other matters, investors may write to http://www.investor.sebi.gov.in

Company Name:

Query:

Name:

Address:

E-mail:

Vol. No. 32 No. 16

Send in your queries:

DSIJ Pvt. Ltd.

C-305, 3rd Floor, Trade Center,

North Main Road, Near Axis Bank,

Opp. Lane No. 6, Koregaon Park,

Pune - 411001

Email:[email protected]

DEMOCRATIZING WEALTH CREATION

B

ank of Baroda is a public sector bank involved in

providing various banking services such as personal

banking, corporate banking, international banking, small

and medium enterprise (SME) banking, rural banking,

non-resident Indian (NRI) services and treasury services. Bank

of Baroda operates a network of around 5,330 branches. On

quarter-on-quarter basis, Bank of Baroda’s net income stood at

`12,852.44 crore, up by 0.50 per cent in Q4FY17, as compared

to the same period last year. The operating profit of the bank

rose by 17.40 per cent to `3,020.17 crore in Q4FY17 as against

`2,572.46 crore in Q4FY16. The bank turned around from net

loss of `3,230.14 crore to the profit of `154.72 crore during the

quarter. On an annual basis, the bank’s net income stood at

`48,957.99 crore, down by 0.21 per cent in FY17. The Bank’s

operating profit increased 24.50 per cent to `10,975.07 crore in

FY17, as against `8,815.57 crore in FY16. The bank also turned

around from net loss of `5,395.55 crore in FY16 to net profit of

`1,383.13 crore in FY17. The bank’s trailing 12-month PE stood

at 27.86, which is high as compared to the industry P/E of 21.37

as well as in comparison with its peers such as Canara Bank,

PNB and SBI having P/Es of 18.81, 23.48 and 23.89,

respectively. Therefore, we recommend our reader-investors to

Hold the stock.

I

DFC Bank Ltd is an Indian banking company which started

its operations from October 1, 2015. The bank’s segments

include treasury, corporate/wholesale banking, retail

banking and others. The bank offers savings account, fixed

deposits, recurring deposits, debit card, home loans, payments

and online services, among others, and it operates with around

65 branches spread across India. On the financial front, IDFC

Bank’s net income increased by 16.71 per cent to `2,279.65 in

Q4FY17 on a Y-O-Y basis. The bank also posted an increase of

0.16 per cent in operating profit to `260.25 in Q4FY17 on a

yearly basis. It posted an increase in profit after tax by 6.60 per

cent to `175.95 crore in Q4FY17 as comparison to `165.06 crore

in Q4FY16.

On an annual basis, the bank reported an increase in net

income by 135.58 per cent to `9,545.83 crore in the FY17 as

against `4,052.03 crore in FY16. The operating profit of the bank

also increased by 136.97 per cent to `1,753.46 crore in FY17 on

a Y-O-Y basis. IDFC Bank posted PAT of `1,019.74 crore, an

increase of 118.43 per cent in the financial year. The financial

numbers of the company are quite good and this performance is

expected to continue in the upcoming quarter, hence we

recommend our reader-investors to Hold the stock.

HOLD HOLD