Tuesday, May 02, 2006

The big bank theory

Bankex moved up by 4.02% today. That's huge. The major gainers were BoI, BoB, Andhra Bank, Indus Ind Bank, ICICI Bank Limited, Vijaya Bank and UTI Bank (all over 5% gains and all in BSE A segment)

Of all these, I like Bank of Baroda. At a fwdPE of 8.36, BoB is undervalued. I estimate a 1yr earning forecast of 800 crs+ given the legacy and advancements made by the bank. The current dividend yield is 2.20%, which is slated to increase given the rise in profits.

27 Comments:

Blogger Amol said...

Shankar,

Aftek is up 13%. CNBC has not reported its results. It reported them on 2nd may. currently its at 87. Finally its zooming. I am accumulating more.

-Amol.

12:32 PM  
Blogger Shankar said...

Dear Amol,

Aftek is a good buy till 100 rupees. Even at 100 rupees, it would have the lowest PE of all tier2 IT stocks. And .. it has an impressive NCAV aswell.

Warm Rgds
Shankar

1:01 PM  
Blogger Amol said...

Shankar,

I bought 100 more shares. Yes, The p/e is quite low. As the results are consistently good, it shows there is a lot of potential in this company.

Warm Regards,
-Amol.

2:40 PM  
Blogger Ravi Purohit said...

Hi Shankar,

Check Dena Bank. Looks like a turnaround story. Possible dark horse for 2006-07 in the banking sector.

--
Regards,
Ravi.

5:02 PM  
Blogger Rakesh said...

Shankar,

I read somewhere that Andhra bank has declared 35% dividend, which would mean (Rs. 3.50/sh). This is around 4% of its current CMP (Rs. 86). I have bought 100 shares but wanted to confirm the news before buying more.

-Rakesh

6:26 PM  
Blogger Rohit said...

shankar....
Oswal chemicals....sold off its fertilizer unit...it is said that the sale would give it a cash reserve of Rs 2,100 crores......and hence the fair value of the share should be Rs 90.....today it was at Rs 54.80 up 12.87%......
your thoughts....a good buy for short term.....play for the pop?????

11:04 AM  
Anonymous Anonymous said...

Is the EPS of RCoVL really 565??

http://sify.com/finance/equity/quotes/eqquotes.php?code=15200050.B

Even the economicstimes site gives the same EPS figure....any Fundamental Analyst here.. please clarify.

And if the EPS is indeed 565, why is the stock not hitting the upper circuits??

8:48 PM  
Blogger Rohit said...

shankar....
Mascon Global............Any Ideas.........

12:47 PM  
Blogger Rohit said...

This comment has been removed by a blog administrator.

12:47 PM  
Anonymous amit. said...

Hi shankar,

I have been following your blog from quite a long time,your analysis are great and they do pay, may be in a long run(a month or so).See bhagyanagar metals!!!!!u mentioned it when it was at a PE of 3 now it has run up too much.

Then gnfc also will give decent results,aftek infosys is other stock where i gained handsomely.

Keep sharing your knowledge.

Thanks and regards,
Amit.

6:23 PM  
Anonymous amit. said...

Hi shankar,

I have been following your blog from quite a long time,your analysis are great and they do pay, may be in a long run(a month or so).See bhagyanagar metals!!!!!u mentioned it when it was at a PE of 3 now it has run up too much.

Then gnfc also will give decent results,aftek infosys is other stock where i gained handsomely.

Keep sharing your knowledge.

Thanks and regards,
Amit.

6:23 PM  
Anonymous amit said...

Forgot to add sandesh,then jai corporation it has zoomed from 109 to 400 and is daily in circuits.

U r simply smart and great.

Thanks.

6:53 PM  
Anonymous Anonymous said...

on leave i think

enjoi

12:47 PM  
Blogger Shankar said...

no anonymous ... :-)

Wrok dude. Am now upto my neck with collections ... recoveries (in plain english, collecting money from customers delinquent for over an year)

Learnt some strong abusive language ... (seriously had to unlearn my wealth management professional habits)

But will be back this week on ...
Shankar

2:16 PM  
Anonymous Anonymous said...

cool cool,modesty is what you are all about.

7:15 PM  
Blogger Shankar said...

ya. whatever ...

8:27 PM  
Anonymous Anonymous said...

Hi, I was out blogging and found your site. It certainly got my attention and interest. I was looking for Quotes information and even though this isn't a perfect match I enjoyed your site. Thanks for the read!

10:14 AM  
Anonymous AJAI said...

Shankar ji where are you.

AJAI:)

11:59 AM  
Anonymous Anonymous said...

markets 850 points down.....
shankar we need ur shoulder:(

6:33 PM  
Blogger Prasanth said...

Anon,

Why do you need Shankar's shoulders? To stand on it and shout "Hurraaay"? Go ahead and picks the stocks you like - this is a golden opportunity.

Regards,

Prasanth

7:37 PM  
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3:50 AM  
Anonymous Anonymous said...

Hi shankar and prasanth,

Thanks to you guys,i was lucky enough to start my investing after going through your blogs.Earlier prasanth was more active but for some time now he has been dormant.
I learned the importance of value picks and conservative or say judicious approach early on from u guys.
Prasanth this is you who is saying to buy,i can't believe this,if i remember correctly you were one of those cautious guys,so well if you say that it is a chance to buy.I SHOULD BELIEVE IT.

Hope you are correct and the onslaught stops here.i have also lost some money in this 2000 point correction.Since i entered into the markets around january,my all gains as of now are zero:)Though was a bit lucky to sell some of those stocks on wednesday.The day of deceptive pullback.

At this juncture if you think that something can be bought in then please share.

Chalo fir thanks once again.

7:51 PM  
Blogger Prasanth said...

Hi Anon,

Thanks for the compliments - I have not posted because work has been hectic and only get to glance thru the blogs i frequent like this one. Don't worry about your investments - mine are in the negative territory !!. When i said go buy, what i meant was buy the ones you have been tracking and ones for which you feel the price is right.

Regards,

Prasanth

8:27 PM  
Blogger Prem Sagar said...

Hi anonymous (sounds crazy to address some1 like this),
Stocks have fallen.. pick good stocks.. and dont bother too much if the one you had purchased falls more..give 10% gaps and if you are confident enough and have money, buy more!!!
But without research, its difficult to hold onto falling stocks.. you would lack the confidence if you had purchased it on hearsay.
(and why do you think the onslaught should stop here? let it continue or let it not. If you get good stocks @ good prices, load onto them, if not, stay away....
remember, make the Market your slave and not your master..well, atleast, try to)
So research your stocks.. if you havent any clue yet, start with One up on Wall St by Peter Lynch.

12:21 AM  
Anonymous Anonymous said...

shankar markets itself in lower circuits?????????

where are you?????:(

7:02 PM  
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9:43 PM  
Anonymous rohan said...

hi dear,

hope that u will give some idea as to what to invest in
for the present situation.

thank you
rohan

6:27 PM  

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