"NBP" is attractive at current levels to Accumulate
"NBP Current" Price Rs.110.91
"NBP FAir VALUE" Rs 207
Recent slide in the index has made NBP the most attractive scrip in the sector, trading even below its book value. NBP is currently trading at CY08E P/Bx of 0.75 (sector CY08E P/B: 1.4). NBP’s historical (CY06-CY07) P/Bx has averaged 2.0x. NBP’s intrinsic value arrives at Rs 207/share, offering 55% TSR (including 8% dividend yield) from the current market price of Rs. 110.9/share. National Bank of Pakistan is expected to post a decent 3-year CAGR of 12% in revenues, whereas net earnings are expected to increase at a rate of 14%, despite lower ROE of 18% for CY08E. We believe the scrip is attractive at current levels to Accumulate.
Thursday, July 31, 2008
"NBP" "FAir VALUE" Rs 207
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