Allied Bank Limited (ABL): Attractive value play from the sector – By JS Research

<ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">We update our investment case on Allied Bank Ltd (ABL) where we flag our liking for the stock as an attractive value play.</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Given ABL&rsquo;s return generation potential standing at 18%, higher than sector average of 17%, we believe the current discount on multiples remains unjustified.</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">The stock currently trades at Jun-2019E P/B of 1.1x, which reflects 25% discount to sector multiples.</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">ABL has recorded 18% growth in asset base during 1H2018 as the bank opted to increas...