Fundamental Analysis: Bank of India, Apollo Tyres

SMC | March 4, 2015, midnight

Bank of India

Valuation: With inflation consistently declining and expect interest rates cut by RBI, the operating performance of the bank is likely to improve on all fronts including credit growth, asset quality and treasury gains. The bank has been focussed on recoveries and bringing the gross NPAs to 3 percent. However, the management expects the full year loan growth to be at 15-16 percent. It is expected that the stock may see a price target of Rs375 in one year time frame on three year target P/BV of 0.77x and FY16 (E) BVPS of Rs487.18.

Apollo Tyres

Valuation: Company's expansion plans for both Indian and global will help the company to increase its market share even as competition in its local market is increasing. With the company's strong fundamentals and the bright growth prospects for both the domestic and a price target of Rs287 in one year time frame on a target P/E of 12x and FY16 (E) earnings of Rs23.95.

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