Gautam Sinha Roy, VP-Equity Strategy and Product of Motilal Oswal Securities is of the opinion that one may pick ICICI Bank as the stock is available at 1.5 times valuation, price to book, one year forward.
Gautam Sinha Roy, VP-Equity Strategy and Product of Motilal Oswal Securities told CNBC-TV18, "We have suddenly seen reversing of trend in the private bank space specially. These banks have underperformed massively in last one week post Reserve Bank of India (RBI's) curbs on rupee liquidity."
"I believe that the run on the banks has been a bit overdone and I would look to accumulate some of these stocks. Probably ICICI Bank, one of the leading names, is available at 1.5 times valuation, price to book, one year forward," he said.
Gautam Sinha Roy further said, "These banks are one of the most secular growth stories that India has to offer. Whenever, due to market concerns, if one finds opportunities to accumulate these banks at cheaper valuations then one should just go ahead with it. So that makes it an attractive opportunity to get into some of the private banking names from an investment perspective. So that is why I would like to pick ICICI Bank as a favored pick here."