Capital First Q3FY15 Result Update Research Report By Sharekhan

Capital First is likely to sustain a strong growth in retail and SME segments and is likely to benefit from a drop in interest rates and revival in consumption. Given the strong management bandwidth and stringent risk management procedures, the asset quality may remain healthy. We expect the earnings to grow at a CAGR of 57% over FY2014-17 and the return ratios to improve significantly from FY2016 onwards. We value the company at 2.5x FY2017E book value which results in a price target of Rs485. We maintain our Buy rating on the stock.

Download Capital First Q3FY15 Sharekhan