Bank Stocks

voight · 1 Bank Stocks Mon May 16, 2016 12:19 pm

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Why banks like SAMP, NDB which has strong fundamentals not moving ? Should we hold these for long term ?

fireshelter · 2 Re: Bank Stocks Mon May 16, 2016 12:31 pm

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samaritan · 3 Re: Bank Stocks Mon May 16, 2016 12:33 pm

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voight wrote:Why banks like SAMP, NDB which has strong fundamentals not moving ? Should we hold these for long term ?

Strong fundamentals means nothing in the present market. Bull is in the parliament toilet answering a call of nature after a heavy 5 star meal in the cafeteria. It has to come out and start running to see real movement. Till then keep fingers crossed. Bank Stocks Icon_smile

worthiness · 4 Re: Bank Stocks Mon May 16, 2016 12:43 pm

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As discussed in the forum before, SAMP selling pressure comes from scrip dividends being sold. SAMP has break 235-240 range. Low buying pressure keeps vlaued shares standstill.

SupunD · 5 Re: Bank Stocks Mon May 16, 2016 1:42 pm

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SAMP may take time to reflect the fundamentals. Specially with higher variable rate loans (~40% of loan book) SAMP should perform better compared to other banking stocks.

worthiness · 6 Re: Bank Stocks Mon May 16, 2016 2:29 pm

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@SupunD

What is your outllook on NDB?

Mega man · 7 Re: Bank Stocks Mon May 16, 2016 2:54 pm

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now is time to buy and hold bank side stock. there many valuable stocks in low price and low risk

voight · 8 Re: Bank Stocks Mon May 16, 2016 3:17 pm

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Thanks all. I think for CMPs NDB is way too low to trade at 180 levels.

Discl: Holding NDB @ 177

SupunD · 9 Re: Bank Stocks Mon May 16, 2016 4:27 pm

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worthiness wrote:@SupunD

What is your outllook on NDB?

I'm generally positive about NDB. Specially given their recent focus on retail banking. However, as most of the banking stocks are attractive in terms of the historical valuation multiple, we need to consider the firm specific factor to identify the future winners.

Banking stocks have their own characteristics. For example, SAMP is historically known to trade at lower PE & PB multiple compared to other big banks. COMB tent to be low volatile even in bad markets. We have to be patient with these stock.

Discl: Holding SAMP