Renewed buying may occur in DCB around Rs 42: SP Tulsian

Renewed buying may occur in DCB around Rs 42, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, “I don’t see DCB crossing Rs 50 or so. We have definitely seen the good results, but if you see on net NPA there is an increase of about 15 basis point or so. Yes, there is a reduction on gross NPA. The bank has posted the better bottom line and all sorts of things, but the asset quality is not tolerable by the market. Even today when we have seen the results of the South Indian Bank, again the results have been very good, but increase in the gross NPA, increase in the net NPA.”
He further added, “The only bad things, which I have observed in the results of DCB is the increase in the net NPA by about 15 basis points and generally as I said on Friday also that we have been seeing the profit booking coming in at a level of Rs 50-51 because the big trigger for the stock would only be the takeover if the stake sale happens by the promoter, which we keep hearing in the past also that HDFC Bank is looking to acquire because of the close proximity to the Aga Khan family and all that, but expect for that the profit booking always comes into the stock and this time probably the trigger is the increase in the net NPA and I am expecting the stock to correct to about Rs 42-43 where again the renewed buying interest may come, so this is logical. I won’t be too surprised in spite of seeing the better numbers posted by the bank.”