Buy Dhanlaxmi Bank 75 Call: VK Sharma

Buy Dhanlaxmi Bank 75 Call, says VK Sharma, Head Private Broking & Wealth Management, HDFC Securities.

Sharma told CNBC-TV18, "Dhanlaxmi Bank can move or swim against the current. They are not the front line ones but they could have reasons of their own. While we did see the open interest going up by almost 25% but the open interest per se is very lower on Rs 40 crore. But nevertheless one need to take notice of this and the stock which quoted around Rs 75.7, the 75 call was available at around Rs 4.65 so I am suggesting buying that call at one rupee lower may be at Rs 3.75 with a tight stop loss at Rs 3 and hope to make almost Rs 3 on this."
The company's trailing 12-month (TTM) EPS was at Rs 3.06 per share. (Sep, 2011). The stock's price-to-earnings (P/E) ratio was 24.48. The latest book value of the company is Rs 99.21 per share. At current value, the price-to-book value of the company was 0.75. The dividend yield of the company was 0.67%.