Dhanlaxmi Bank can touch Rs 150: Tulsian

Dhanlaxmi Bank can touch Rs 150, says SP Tulsian of sptulsian.com.

Tulsian told CNBC-TV18, "On the financials, Dhanlaxmi Bank has a book value of Rs 96 and it is ruling at a price to book of 1.1. If one sees the expansions made by the bank, out of the present 270 branches, 63 branches have opened in the last one year. For that reason, the bank has gone for its first round of funding in July 2010 where they issued 2.1 crore shares at Rs 181 and mobilized Rs 380 crore." He further added, "Now the board has decided to go for a second round of funding and proposes to issue 5.5 crore shares. Obviously, the share has corrected from about Rs 200 to Rs 100. The second round of funding is not likely to be made at an issue price of about Rs 100 or so. Hence, there is definitely going to be a price management and I won