Arvind Sirjee,
Any inputs from your side for Punjab and sindh bank IPO?
Go/No Go?
Also the future prospects for our Gitanjali..
Regards,
Harshad M
Invest in Punjab Sind Bank only if you are long term investor.
Pros:
Modest valuations, superior asset quality and high return on net worth make a good case for investment. Also the banks asset quality and return ratios remain healthy at current levels, making its valuation cheaper than those of other midsize PSU banks.
Cons:
An area in which the PSB is at a disadvantage is with regard to access to low-cost deposits. Despite wide spread presence in rural and semi-urban centres which are catchment areas for low-cost deposits, the CASA ratio for the bank stands at a modest 25 per cent, compared to between 35-40 per cent for peers.
Going ahead, the bank has a plan to open 100 new branches pan India and strengthen its business particularly in the corporate and retail loan segments. Being the smallest PSU bank, it may be a target during the consolidation phase in the sector. From the valuation perspective it is quite attractive as it will trade at 0.9 times of its post issue Book Value at a higher band of Rs 120
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Midcaps will outperform the markets in the coming days....
As far as Gitanjali, if trades above 224 we can see 258-285 soon.
Not only gitanjali...orchid, uflex, skumar, Jupiter, indusind bank....and many others....will do good