Exit ING Vysya Bank around Rs 650: Tulsian

SP Tulsian of sptulsian.com told CNBC-TV18, “If you see FY13 earnings per share (EPS) of ING Vysya Bank at Rs 40, that is quite comforting and even the price to book is sub 2 timex, that also makes the stock quite attractive. But apart from that the management has decided to issue 3 crore shares for about Rs 2000 crore. So, that gives a per share valuation of about Rs 650-660. And any kind of these equity issues by banks are always seen very positive and more specially the private sector banking because that much fund infusion which comes with the interest free or without any obligations will obviously be increasing their results going forward – topline, bottomline, the NIM and everything."

He further added, “So, even if we hold it for a little longer time, doesn’t matter. But if shares are likely to get issued at Rs 650 or Rs 660 level or so, then one can look to exit at Rs 650. However if one has a longer term horizon both options exist, either remain invested for one year or look to exit at Rs 650 and again look to repenter the stock may be 10 percent lower.”