Fundamental Call On May25, 09: Buy Indian Overseas Bank

Fundamental Call on May25, 09: By Praveen Kr sevak
Co Name:IoB (Indian Overseas Bank) Reco: Buy
CMP: Rs 85-88 (Buy in small Quantity at current level)
Best Buy level: Dip Around Rs 70 (accumulate at this level)
Target Price: Rs 98 (1-2 month), Rs 157 (6-12 months)

Investment Rational:
1. In Q4 of FY 09, IoB has registered 22% increase in its operating income and 5.37% increase in its net profit.
2. In the FY09, It has registered 10% rise in Net Profits and had come up with recoveries in its bad debts, which causes it profit to be up by this amount.
3. In a First of its kind deal, EXIM Bank and IoB have come together to co-finance Akshay Katrina Starer De Dhana Dhan produced by Venues Records and directed by Priyadarsan. The movie is expected to have a budget of Rs 70 cr and EXIM would give Rs 15 cr and IoB would give Rs 10 cr at a rate of 12.5-13%.
4. It is currently tradind at a PE multiple of 3.7 and PB of 0.80. It is expected to see Rs 157 level at a PE multiple of 6X at the EPS(E) Rs 24.5 of FY 10.

Comments

Post a Comment

Popular posts from this blog

Global Markets, RBI Policy Review Will Dictate Trend (Oct20-25)

Concerns about a Global Recession may continue to weigh on the domestic bourses, which have tumbled in a global equities rout in the past few days. Lack of buying support has accentuated the decline on the bourses Foreign institutional investors (FIIs) continue to press sales. They have sold shares worth Rs 46,661.20 crore in the calendar year 2008 so far (till 16 October 2008). Investors now await the Mid-Term Monetary Policy Review by the Reserve Bank of India (RBI) due on 24 October 2008. Some reports suggest that RBI is set to cut the repo (repurchase) rate by a steep 50 basis points, to signal a strong shift in policy focus to growth from inflation. Repo rate is the rate at which RBI provides funds to banks against the collateral of government bonds for a day to three days. On the inflation front, experts feel that the wholesale price index is expected to move downward, and will eventually come down to single-digit numbers by January 2009. Inflation based on the whole price index ...
Read more

Fundamental Call On Dec08,08

Buy Jhunjhunwala VanaspatiWith Short as well as Long Term View Co Name: Jhunjhunwala Vanaspati Ltd Reco: Buy CMP: Rs 72 (Dec05,08) Best Buy Level: Dip around Rs 65 (accumulate at or below this level) Target Price: Rs 82-85 (1-3 months), Rs 120(12-18) months Investment Rational: 1. Fundamentally, The company performance is quite consistant and it is registering very impressive growth in its Top Line ( Net Sales) and Bottom Level (PAT) of around 50% and 70% consequtively on average basis. It has EPS of Rs 48 (approx) so PE of 1.5 and BV = Rs 132. 2. 58% of its earnings comes from vanaspati oil and rest from soya, palm and Mustard oil. And, it has 35-40% market share in UP and Bihar. And, it has increased its market share over period of time. At the same time. the company has plans to increase its total capacity and to establish nes units in Bihar and West Bengal as well. Moreover, It has taken over a fertilizer comapany in Bihar to enter in Fertilizer segment.
Read more

Performance of Recommended Shares As on Dec01, 08

Here, one can find performance of Recommended shares and can see the my performance has out-performed the return from benchmark Sensex performance. Short Sell Recommendation Co Name Reco Reco Price Target Price(Rs) Lowest Level /Currnet Price* Remarks 1 Bajaj Auto Sh Sell Rs 444 Rs 350-360 Rs 305 Target Achieved 2 Welspun Gujarat Sh Sell Rs 139 Rs 85-90 Rs 73 Target Achieved 3 Bombay Dying Sh Sell Rs 630 Rs 144 Successful 4 NDTV Sh Sell Rs 314 Rs 74 Successful 5 Ambuja Cements Sh Sell Rs 80 Rs 52 Successful 6 UTV Sofware Sh Sell Rs 798 Rs 208.35 Successful 7 SRF LTd S...
Read more