J&K Bank may test Rs 1700: Bhavin Shah

Bhavin Shah, CEO of Equirus Securities told CNBC-TV18, "We have a target price of Rs 1,700 on Jammu and Kashmir Bank. We like the quality of the business. Not only has it continued to have a healthy credit growth, but more importantly the asset quality is quite strong, especially if one compares to the rest of the public sector banks. Its numbers look similar to a good private sector bank as opposed to a public sector bank."

"The quasi-monopoly status that they enjoy in state of Jammu & Kashmir is very key to the fundamentals. So we see strong upside in the stock. It is trading at a very low valuation, reasonable dividend yield as well," he adds. Disclosure: He owns Torrent Power, J&K Bank and Senan Exploration in his portfolio.