Mohnish Pabrai bought 196,06,634 shares of South Indian Bank in early July 2014 (see Mohnish Pabrai Ends Exile From Indian Stocks With Purchase Of South Indian Bank From Renuka Ramnath).
Jagannadham Thunuguntla, Head of Research at SMC Global Securities told CNBC-TV18, “I feel that for the banking it is a long way to go. In the midcap private sector banks I feel still in terms of valuation there is some catching up to do and influential names kept on adding South Indian Bank to their portfolios. I feel the stock should perform.”
“On top of that at some stage there maybe chances of consolidation game in private sector banking space. So, there is always a chance that some M&A opportunities may crop up at some stage. I am not talking about two to three weeks or months, I am talking about two to three years,” he added.
“So, buy South Indian Bank on dips; I feel that the stock may double in the next two to three years“, Jagannadham Thunuguntla said.