Hold Dena Bank, says SP Tulsian

SP Tulsian of sptulsian.com told CNBC-TV18, "Dena Bank maybe be able to post an earnings per share (EPS) of close to about Rs 20, so that makes it ruling at a PE of less than 3. If I go by the book value, the book value as on March 31, 2014 will grow to about Rs 160 crore, so that makes it rule at a price to book of 0.4. However, if I go by the recent results which they have posted where we have seen the gross non-performing assets (NPA) rising by 50 basis point, net NPA rising by about 35-38 basis point, the asset quality concerns are there."

"The overall negative perceptions are building up on all the PSU banking stocks but I won't advice to exit from this stock because there are few stocks in the mid-size PSU bank like Dena Bank, Indian overseas Bank (IOB) and UCO Bank which swiftly moves up whenever we have the positive indications coming. So, I won't advice to book loss and exit now. For longer term, I will advice to remain invested with one year horizon on the stock," Tulsian said.