Leading brokerages Axis Direct and Bajaj Broking have provided their investment outlooks and target prices for DCB Bank Ltd and Eternal Ltd (formerly Zomato) shares, respectively. Both firms see potential for significant movement in these stocks over the near to medium term, citing a mix of fundamental strength and technical indicators.
DCB Bank: Positioned for Profitability Growth
Axis Direct has assigned a 'Buy' rating to DCB Bank, setting a target price of Rs 205 per share within a six to nine-month horizon. The brokerage highlights several key factors underpinning its positive view, including robust business growth momentum, asset quality at a multi-year low, and strategic liability repricing efforts.
According to Axis Direct, DCB Bank is well-positioned to deliver a steady improvement in profitability. They project a Return on Assets (RoA) of approximately 1 percent and a Return on Equity (RoE) between 13.5-14.5 percent over the fiscal years 2027-2028 (FY27-28E). This growth is expected to be driven by healthy high-teen credit expansion, particularly in mortgages, MSME lending, and agri-linked financing.
The brokerage also anticipates stability in the bank's Net Interest Margin (NIM) at around 3.4 percent, supported by a gradual strengthening of its liability franchise and a focused approach to optimizing the cost of funds (CoF). Controlled credit costs and disciplined expense management are further expected to contribute to consistent earnings growth. DCB Bank is currently trading at 0.8x its FY28E Book Value, according to Axis Direct's analysis.
Eternal Ltd: Consolidation Nearing Maturity, Uptrend Expected
Bajaj Broking has turned its attention to Eternal Ltd, projecting the stock to move towards the Rs 290 level in the coming months, with an expected timeframe of six months. The analysis indicates that Eternal shares have been consolidating within the Rs 235-265 range over the past nine weeks, a phase that Bajaj Broking believes is nearing its completion.
The brokerage identifies immediate support for Eternal around Rs 235-240, which corresponds to recent lows and a key retracement level. The anticipated move to Rs 290 represents a 50 percent retracement of a previous decline from Rs 368 to Rs 213, aligning with the implied target from the recent consolidation range.
Adding to the bullish outlook, Bajaj Broking notes that the daily Moving Average Convergence Divergence (MACD) has generated a buy signal, crossing above its 9-period average and sustaining this position. This technical indicator suggests improving momentum and reinforces the positive bias for Eternal's stock performance.
Disclaimer: This article 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.