Buy Karnataka Bank, DCB at current levels: Tulsian

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Buy Karnataka Bank, DCB at current levels: Tulsian

SP Tulsian, sptulsian.com advices investors to buy Karnataka Bank and DCB at current levels with couple of months time frame.

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Excerpts from Closing Bell on CNBC-TV18 Watch the full show » ALSO READ See previous views by SP Tulsian See what other Experts & Brokerages are saying about Karnataka Bank See messages about Karnataka Bank

SP Tulsian, sptulsian.com advices investors to buy Karnataka Bank and DCB at current levels with couple of months time frame.

Tulsian told CNBC-TV18, "Metal stocks have taken a lot of beating. I don't think that this kind of beating was really warranted because in some of the cases like Steel Authority the market has just taken one stand that Ivy cannot give the discounting more than on a earning multiple which is ruling at about 6-7% or maybe 8% maximum and taking that into account the share has beaten to as low as Rs 80. I don't think that that kind of valuation was really warranted. Same thing was in respect to Hindustan Zinc . I don't think that we had been seeing any kind of volatility in the non-ferrous metal. I don't think that zinc prices or lead prices have really softened in last 45-60 days. Conversely the rupee has really become weak in this period which has given them a large benefit. So taking all this into consideration still my buy call would be more on Hindustan Zinc and Steel Authority from the current level."

He further added, "Going for the banking stocks you have some ideas available maybe in the small cap or in the midcap private sector banks. One could be Karnataka Bank, second could be DCB. If somebody can buy them at the current level, have about couple of months view can expect a gain of about 15-20%. Even if the call is taken on the frontline leading private sector banks like ICICI Bank or HDFC, I may not be too positive on Axis Bank, but HDFC Bank and ICICI Bank looks also attractive. But I won't be too comfortable taking call on any of the public sector bank whether we talk of Bank of Baroda, SBI, Canara Bank. Some midcap PSU banks like Dena Bank, UCO Bank, Central Bank they have been giving sporadic news, but they are not very sustaining. So probably selective in banking stocks like Karnataka, DCB or maybe ICICI Bank and HDFC Bank."