Rbl bank is one of the new private sector banks who has recently launched its IPO in 2016. Today in this post we will discuss RBL bank and its performance and look closely why currently it’s a buy call.
Current price & P/E
As on today, 12/oct/2018 RBL bank share price is Rs 526/- per share with a market capitalization of 22,364 crores.
If we look for P/E of RBL bank then it is around 32 which is a bit high so valuation wise its not a must buy stock but we can grab the opportunity if it will come close to 500 also if you are looking for long term then you can buy it right now also for Rs 532/- per share but only if you are looking for long-term (at least 7-8 years).
Stock return over Last two years
The stock had done the fabulous performance over the last two years from its IPO launch in 2016.
RBL Bank share price has given the huge 68% return in two years which equates to 34% annually and this is even after a recent market crash in sept-oct 2018.
Net profit over the last five years
By seeing the below graph I think you got the idea of how the bank is performing and why its a buy call.
Actually, RBL bank has very good management and having good management is just like a strong backbone.
We can easily see that its net profit has increased from 141 crores to 190 crores in just five Quarters and I think it will increase more in the coming future.
Increasing Net profit of RBL bank is also one of the reasons for the surge of RBL bank share price over the last two years.
Investor and mutuals fund Holding
We can take an idea that how good the stock is by taking consideration that how many top investor and mutual funds have their holding in the stock.
Just take a look I am providing the name with the percent of holding in RBL bank
|Investor Name||% of Holding|
|Kotak Standard Multicap fund||3.84%|
|Asian Development Bank||3.38%|
|Motilal Oswal Multicap 35 Fund||2.71%|
|Cartica Capital Ltd||2.56%|
|Hdfc Trustee Company Ltd.||2.40%|
|Reliance Capital Trustee Company Ltd||2.00%|
|Government Pension Fund Global||1.98%|
|Aditya Birla Sun Life Trustee Pvt. Ltd||1.95%|
|DSP Blackrock Midcap Fund||1.81%|
|IDFC Sterling Value Fund||1.68%|
|Kotak Funds-India Midcap Fund||1.29%|
|Steadview Capital Mauritius||1.03%|
My Target Price
After analyzing all the above data Currently RBL bank is the value buy and if the growth continues at the same speed then My target price is 1000 rs per share in the next 4 years.
Please note that buying a stock is just like buying the business so please think long term if you really want to make money in the stock market from long-term I mean think for 5-10 years period, not 1-2 years.
if you have other thought about RBL Bank share price then please tell me in the comment box.
If you like reading above then please look to my other recommendation here is a link
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