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Bank and finance sector - best potential counters

4 posters

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LoveMoney


Senior Equity Analytic
Senior Equity Analytic

I'm thinking of enter into this sector to hold until the beginning of the next year, this is going to be some millions of rupees. I would like to get your idea on this



Last edited by Quibit on Fri Jun 17, 2011 7:41 pm; edited 1 time in total (Reason for editing : Hi, Bye, Thanks removed!!!!)

Prince

Prince
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Best buy is SMLL

after their recent right issue break even is at Rs 63.00 but now its trading under 44.00

before the right issue it went up to Rs 120.00.

check their Annual Report in SEC site for financial stats.

LoveMoney


Senior Equity Analytic
Senior Equity Analytic

I was thinking of SAMP as a popular choice. Do u think SMLL outperform SAMP?

Prince

Prince
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Definitely..!!

kam2011


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Dear Love money,

I hope you have done some studies on individual basis and sectorwise. Eventhough banking and finance sectot companies performing well mylpresent price level is little high I believe. If you have analised this sector could you pl. share with us your findings..

My privious post under this subject is disappered. I dont know why?

cse_investor

cse_investor
Manager - Equity Analytics
Manager - Equity Analytics

Posting again as this seems to be a duplicate thread:

Personally I think that CDB has great potential for growth. I know about the previous discussions on the subject, but an analysis of their financials clearly shows proper business growth, not just capital gains. QoQ their net income from interest alone grew by 48%, YoY it grew by 69%. Deposits have increased, so have assets and its NAV. Kudos to Cse.see who did an interesting analysis last month which can be found here: http://investors.lk/12256/

I am convinced that most of the banking and finance stock will yield positive returns in time to come, the questions is which one will move first. CDB currently trades at a PE of around 6.5, which can be considered undervalued. With an aggressive top management tier running the show, I wouldn't even be surprised about seeing a rights issue take place soon to support further growth.

My money is on CDB (mid-term, it's not a speculative share), even thought a few forum members disagree, and I have already collected a few over the past few days. Please note that this is not a recommendation to buy CDB. Do your own research before buying or selling.

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