Limited downside seen in PNB, BOB: SP Tulsian

SP Tulsian, sptulsian.com is expecting bounce back or may be a sharp upmove of 5-8% in September series in all PSU banking stocks like PNB and BOB.

Tulsian told CNBC-TV18, “I am keeping my positive view on PNB because if you see the book value of about Rs 780 on March 31 and expected EPS of Rs 140 in spite of the asset quality. If you go by the pure fundamentals I don’t think that you can really get the stock at such a low PE multiple and such a low price to book.”
He further added, “PNB being the second largest after State Bank of India, in fact I am seeing very limited downside space specifically in PNB and Bank of Baroda. The kind of shorts which we have seen having created in the stock also gives a technical bounce back opportunity. That may not happen in this series. May be for next couple of days we may see all these PSU banking stocks, more specially the larger ones like PNB, Bank of Baroda, Canara Bank, they may remain range bound, but I am expecting a bounce back or may be a sharp upmove of may be anywhere between 5-8% in September series in all these stocks.”