please advise.. what should I do between federal bank, DCB bank and City union bank?

Discussion in 'Ask A Query About Your Stock Picks And Portfolio' started by Ansh - Analyst, Jul 11, 2016.

  1. Ansh - Analyst

    Ansh - Analyst New Member

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    I am aged 24.5 years. My current holdings are,

    DHFL - 203/- (200 shares) - confused about this stock - whether to hold or not? I think its priced too much and the price movements are haywire. I think this stock is too much manipulated by the big mutual funds, etc.
    suzlon - 17.6/- (1000 shares) - long term till 2023.
    granules - 133/- (200 shares) - long term till 2018.
    meghmani organics- 28.39/- (950 shares) - long term till 2019.
    SH Kelkar - 250/- (2 shares) - I love their business model and the kind of business they are in and the demand is going to increase but its quoted at a high price is what I believe.

    I want to invest in banking sector. I am considering federal bank, DCB bank, south india bank and City union bank. However, I am too confused to chose one among them. I think federal bank has a better scope but the valuation is high, as I was looking for around 40-50 levels.

    Please advise what to hold and what to sell.. I am thinking on divesting my holding in DHFL and move to any one of these banking shares? Any advise is appreciated? Thank you in advance.
     
    Last edited: Jul 11, 2016
  2. sandeep1802

    sandeep1802 Active Member

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    City union bank
     
  3. Ansh - Analyst

    Ansh - Analyst New Member

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    can u please give me reasons for that?
     
  4. New_Investor

    New_Investor Active Member

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  5. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    Congrats for young start :)

    How you can say that? Stock is at 1.20 PBV (trailing) which means it is cheapest in HFC space compared to Repco, Gruh, LIC etc.

    How price movement is relevant? What you have to see is movement of operation profits. Company is steadily growing at 20% then you have to worry about nothing because stock price will catch with earnings someday or other.

    Interim Growth Ratios (%)
    QoQ YoY YTD
    Quarterly

    Revenue 4.25 24.27 24.27
    Operating Profit 3.49 23.44 23.44
    Net Profit 2.02 16.87 16.87
    EPS 2.01 16.70 16.70
    TTM
    Revenue 5.54 22.28 22.28
    Operating Profit 5.34 21.89 21.89
    Net Profit 3.90 17.37 17.37
    EPS 3.86 6.77 6.77

    If you see figures DHFL is showing 24% growth in revenue 23.44% in op profit and 16.87% in net profit.

    Also stock has dividend yield of 3.2%.
    All three are good banks. You can look also to NBFC stocks like CAPF which are good with operating performance.
     
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