Buy ING Vysya Bank, says Aashish Tater

One can buy ING Vysya Bank at current levels, says Aashish Tater, Head of Research at Fortunewizard.com.

Tater told CNBC-TV18, "The idea behind recommending ING Vysya Bank is that we have been bullish on this stock right from that Rs 310 odd levels and every year we were factoring in 30-35 percent net growth for the stock price in terms of appreciation and the worst case return was expected at 25 percent. In last three and half years the stock has doubled itself giving you an average return of 30 percent. What we are expecting is that going forward also the stock looks promising."
He further added, "The way the bank has positioned itself, it has stayed away from all the troubled sectors. It is luring for Current Account Savings Account (CASA) so that it maintains its growth momentum. Even on 550 branches and sitting on a Rs 9,000 crore odd of marketcap, we still feel there is a 20-25 percent return that can be made even for the next year and if you see there are few sectors where 20 percent growth is looking very promising for sectors."
"If you see the current situation the stock has run up almost Rs 60-70 in a very short span of time but still we feel that if someone holds it from next two years perspective he/she is likely to be rewarded 25 percent Year-on-Year for at least next two to three years. So it is a portfolio bet where we feel that whatever you hold should be a hold. If you want to add on something you should be adding on dips or even at current levels, because we see from technical snapshot perspective that Rs 570-575 where large players would definitely be interested in the stock and we have a Rs 1,000 plus target on the stock from next two to three years perspective."
"If you are holding something like Axis Bank or ICICI Bank where there has been some expose talked about and there are some concerns, you can easily switch to something like ING Vysya Bank where the price-to-book value is less than 2 times and you are getting the same comfort because the parentage is very strong and also the balance sheet looks very clean and given the growth strategy for the bank even going forward this is one bank where we feel safety as well as risk reward is favouring the investors."
"It moves very slowly. It is not that it will rocket, but the thing is it will gradually give you returns and as portfolio investors what else you want if your stock money doubles every three-three and half years." Disclosure: Safe to assume that the above stock recommended to clients.