I have DCB but after their expansion plan I think there are many other companies in market which can give more and early returns than DCB...... I'm waiting for a little rally to sell it.....
If you compare both city union looks better, after new strategy, market is very suspicious about DCB..... but one should go with Axis or ICICI..... there are chances of early growth and returns....
Both are good stocks. Bad news about DCB is in price. so there may be good gains in future is expansion plan works well. Even if stock go back to original price there is 30-40% gain possible.
DCB i dont see any near term positives. also management did not stand by it's decision and based on the reaction they partially changed the strategy. i think DCB should head lower apart from relief rallies. the most difficult thing to resurrect is reputation.
If you look at ICICI bank then all of it's subsidiaries are under one roof. Some companies have demerged and unlocked value for shareholders. so may be in the very long run ICICI can unlock good shareholder value. However, the price at which it is available i am not conformable to enter .
While we are talking about banking Oriental bank of commerce recently made a 5 year low.. i don't know what's with this stock but it hits 300 once every two years. may be it will give 50% returns of not double. I don't think there was much to lose near it's 5 year low of 120's/130's and is a great price to pick up.
@nilesh67 I am agree with that DCB can head lower from here....DCB is a very high profile stock and people are ignoring the fundamentals of CUB...please keep a close watch on CUB and as far as I think it can be a multibagger....
I dont think their reputation has taken a beating...whats suprising is that the share did not react to their step back on their expansion plans... Maybe there is more to it than meets the eye...maybe somebody wants the price to be depressed The basic problem with banks like DCB, Laxmi Vilas, CUB is that soon they will face competition from the small and payment banks. payment banks will put pressure on the CASA and small banks on their small ticket lending. Even IDFC's Madhya Pradesh strategy may face competition