Hold Bank of Rajasthan: Dhawan

Excerpts from Your Stocks on CNBC-TV18 Watch the full show » RELATED NEWS Sell Bank of Rajasthan, says Sukhani Bank of Rajasthan to raise upto Rs 250cr via QIP ALSO READ See previous views by Sajiv Dhawan See what other Experts & Brokerages are saying about Bk Of Rajasthan See messages about Bk Of Rajasthan Bk Of Rajasthan BSE | NSE 01/01/70 Are Mutual Funds betting on Bk Of Rajasthan?

Hold Bank of Rajasthan , says Sajiv Dhawan of JV Capital Services.

Dhawan told CNBC-TV18, "At best Bank of Rajasthan is hold. It shows its contrast of the stock like SBI in the news for the wrong reason. Bank of Rajasthan under SEBI scrutiny because of some actions by its promoters. It is in the news again today with a QIP issue of Rs 250 crore and one can guarantee as far as QIP is mentioned the speculative traders latch on to the stock and you saw a 5% sort of an upmove today."

He further added, "Valuation wise its reasonable. It's one of the smaller banking stocks, so it probably suits a higher risk trader or investor. Personally I would stay clear but at current levels after the news flow which you have seen, I think a patient investor could probably hold on."

Yesterday the share closed at Rs 63.65, up Rs 3.65, or 6.08%. Market capitalisation stands at Rs 1,026.99 crore.

The company touched its 52 week high Rs 98.00 and 52 week low Rs 30.95 on 21 Oct, 2009 and 12 Mar, 2009, respectively. Currently, it is trading -35.05% below its 52-week high and 105.65% above its 52-week low.

The company's trailing 12-month (TTM) EPS was at Rs -0.43 per share. The stock's price-to-earnings (P/E) ratio was -. The latest book value of the company is Rs 39.88 per share. At current value, the price-to-book value of the company was 1.6. The dividend yield of the company was 3.14%.