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DENA BANK short term play








Company Profile:

 Dena Bank offers a wide range of financial services and banking services. Bank transactions include savings, current accounts and big votes; bonds, duplicates, and continuous consolidated loans; small savings schemes; and financial certificates. The company offers a wide range of loan sales, as well as housing loans, tuition loans, personal loans, car loan sales, solid shopper loans, financial transactions, mortgages, and gold pension loans, in addition to financing for rental property. in addition, Dena Bank offers finance, long-term financing, capital investment, pre- and post-sale finance, non-funded mainly credit-card funds, and credit to the company's customers. The company was founded in 1938 originally as a Devkaran Nanjee depository financial institution Ltd and has its own operating base based mainly in the metropolitan area.

 My Personal View: 

 Buy "Dena Bank"@57.10rs, RBI Today declare rate Cut before market opening,
What I have observed that Dena Bank is big beneficiary because this small size State Govt. Owned bank has more exposure in Infrastructure sector. if NPA will come down then this Bank Will Lead the Current price, I think it is undervalued stock at current market price of 57rs. It is My multibagger stock for coming months and years if everything will be fine with the economy. if there will be not much growth in the infrastructure sector then it is the biggest risk for this small psu bank. As it is a State owned govt bank so there is no chance of insolvency. After few years, We will see merger of small psu banks into big size nationalized bank of India. If PSU banks will not perform well then who knows that few of the name on the radar of the govt for selling its stake ? These all are the only prediction nothing is confirmed. We should stay in present. At present this bank looks promising and It may double from current levels.
The company share price is trading at average valuation. The demand for the product of the company will increase as the demand for loan  will increase in every sector. The growth story of the India is still good. Especially in Consumption sector & Infrastructure sector. Due to the modernization, India will give better opportunities to banking sector companies in their expansion plans. The govt has also focus on Disinvestment of the state owned banks .The banking sector will be more in focus in India in coming many years because of banking sector management’s strict actions for reducing NPA’s of the banks. There is no any question that the competition in the market will increase. In such scenario, The Company having Low NPA’s and loan book as well as strong management will win the race. Because the strong management know how to set achieve the targets. Banking sector offer loans to various industries like Agro, Manufacturing, Automobile, Construction etc. Once recovery will come into these sectors then these PSU banks will start performing.

Disclaimer:  Please do your own research before making any investment decision. My View may differ from others views. The company profile Data has sourced from company website but the view on company stock is personal.

 



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3 Comments
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  1. Hello Friends, Sorry For Late reply , i was out of Country for my business purpose, i will update my blog from today.

    For any Inqury, please call me on my mobile any time , = +91-9780038546

    ReplyDelete
  2. pushkar singh , u are very new for this blog and i think u have lack of knowledge about stock market and its price movement.. so my followers earned good profit and all booked profit. you joined very late and commented very late . anywz, you seem not professional in this market so you comment is casual for us.
    thanks

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