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WHY TRADE BELOW BV
Posted by :
Guest
...because apart from being a small bank it also has little presence outside Kerala. Most other banks that you have mentioned are fairly well spread out in multiple states.
While by all accounts this is a well managed bank there have always been some concerns over some of its activities. The rights issue done at what was a mysterious price did not help.
Today the best hope for this bank is that it is trying to takeover CSB (No idea why that is taking so long) and that one day it will be a perfect candidate for a larger bank to takeover.
Once this takes over CSB it will have a larger balance sheet and one can look forward to some upside but the real kicker is when a foreign bank tries to enter by investing heavily at first and then making an open offer.
Meanwhile the price movement of this bank is good enough for traders to make regular profits. Recently it has consolidated at the 215 level and moved up to nearly 270 before coming all the way back to 220. Lots of money to be made for traders since it is by no means a sluggish stock....
WHY TRADE BELOW BV
Posted by :
mitseeCan anyone plssss. explain why this stock trades at book value when other banks like icici,hdfc,kotak,axis and evel smaller banks like indusind , south indian, yes bank and even psu banks trade 2-3 times BV.....i would be thankful if anyone would come up with a satisfactory reply.......
shame for the bank
Posted by : Guesteven small banks like south indian bank are performing well..no demand at all......
Citigroup maintaining buy
Posted by :
Target2012
FEDERAL BANK
RESEARCH: CITIGROUP
RATING: BUY
CMP: Rs 228
Citigroup maintains `Buy` rating on Federal Bank. Federal`s Q2FY10 profits were 20% below estimates largely due to asset delinquencies and higher loan-loss charges. Fundamentally, it was a mixed quarter with the gains offset by its continued high asset deterioration. Federal`s increasing loan losses overshadowed an otherwise good P&L - NIMs expanded 38 bps q-o-q and fee growth appeared to revive with a 20% q-o-q rise. Pre-provisioning profits increased 24% q-o-q. Federal`s loan growth increased sharply and management targets 25-30 % for FY10E - well above industry levels. Federal`s slippages have increased sharply and meaningfully increases its leverage to the macro outlook given its mid-market focused loan book. High coverage levels (83%) however, provide some downside cushion. Citigroup expects the stock to remain weak in the near term - however, the downsides will be limited given Federal`s : a) Large capital base (17% Tier 1 ratio); b) Niche positioning ; and c) Relatively inexpensive valuations (0.7x 1-year fwd P/BV) - the cheapest amongst Indian banks. ...
buy buy
Posted by : Target2012You are right. That is why probably this was highly recommended by peopl in banking industry in the past. But it doesn`t look like it will continue that kind of growth going forward. Anyhow still i think it is one of the very well managed private banks. There won`t be much increase in stock price in near term. I am holding this mainly because i liked their annual report actually. Felt like they try to give all information to share holder. I will hold until next april and decide whether to shift to any other private banks or PSU banks like Andhra Bank/BOB....
worst performing stock
Posted by : Guestit is the worst performing banking stock...clearly seen tat no demand for the stock......
buy buy
Posted by : Target2012I am also still holding this stock for last 2 years. Appreciated very well from march this year. But stuck between 220 to 250 for almost 3 to 4 months. Merger will be only trigger point in near term. From long term higly recommended. Even other bank managers recommend this stock. That is i bought this in the begining....
investors not happy
Posted by : Guestfall of 8% and rise of a mere 2% clearly shows the actual investors r not happy wit the results...and there is no demand for the stock.....
the boarders have run away..
Posted by : Guestchurch is doing watever it can to stop the merger..so if the merger happens after so many problems it better not happen....do you know y the bank went for right issue at 240 when the mp was itself above 300...and y did the eps last year fell despite rise in profit and no fresh issue of shares.......
the boarders have run away..
Posted by : smartakkaMerger with CSB will take place. With the interest rates falling, fall in income was expected but not in profit. Agreed resukts are disappointing but the share is not over valued and hasa potential to go up. emeber ICICI bank posted March qter esults with fall in profit and with FIIs buying it shot up from Rs 440. Now also if any FII buys it it will jump. Even other wise instituional hlding is good ...
the boarders have run away..
Posted by : Guestthe boarders on this stock have run away after results...merger is not going to happen in this decade......
NOW IT IS CLEAR
Posted by : joyanthonySales and Gross profit has increased quarter to quarter and it is only the Net profit that has come down. This will not affect the long term performance of this bank. The net provisons made during this quarter is 150 crores against 52 crores made during last quarter. This is a difference of 98 crores during this quarter. The profit has increased by over 64 crores if you omit the provisions. It is in line with expectations....
