Initiating Coverage - Bank of India - KJMC Research - Sep’07
Dear Sir / Madam,
Please find attached Company Report on *Bank of India*
At CMP of Rs.242 (5/9/07), stock is trading at P/Adj.BV of 2.4x FY07, 1.9xFY08E and 1.5x FY09E Adj BV. On P/E multiple basis, it is trading at 10.5x FY07, 8.2xFY08E, 6.8x FY09E EPS. Bank’s stock has outperformed bankex and Nifty during past one year. Considering the overall performance and growth prospects, we are initiating coverage on the stock with a target price of Rs.316 (within 12months), which translates to P/Adj. BV and P/E of 1.9x FY09E Adj BV and 8.8x FY09E earnings respectively. Hence we recommend a “Buy” on the stock with an upside of 31% on CMP.
