this is undervalued compared to its peers.... however dnt see it crossing 35...but i am still waiting for that big upmove in this script.. byoyant markets are supporting this at the moment -- needs to outperform
I am not saying that it will cross Rs 47. But coming to Rs 20 level is also impossible.If by any chance it comes to Rs 20 level, I would prefer to buy in bulk as it is a merit based share with L & T backing and L& T will certainly be able to take over it as RBI will be forced to relax. Or else some other bank will take over it. Lets not allow emotion to cloud our thinking.
Thanks for the clarification. But as an investor I am wondering about What is the reasonable price of this share compared to other opportunities in the stock market?
Please note that with a tiniest equity capital City Union Bank is doing wonderful job.See the balance sheet ratios and the amount of cash( reserves )sitting in the books.With Rights and QIP around the corner the scrip is set to cross at least rs.40-47 in a years time or rights may be offered at a very low premium. It seems some big corporates are eying a pie in this southern golden jewel. It is very very strong buy on a long term basis.
If you are looking for a very short term point of view you can exit around 31-32.If you just go beyond for some time you may have the chance to exit at 4o-47 level.Currently you should hold and seeit is crossing soon the year high level of 29 and hitting 31.
rightly said.. i donot rule out 40 - 47 levels..but the question is does ifty have legs over 5000...if markets are headed to 5300 - 5400 levels...CUB will surely test 40
the stock looks strong at the moment...once it closes above 28 it will make further upmoves...but it has consolidated nicely in the 22 price band and warrants an upmove over 30 anytime
Index movement is nothing to do with this share.CUB is having the smallest equity. For banks now a days huge capital is needed.Hence to pump more capital the management has to go in for Bonus,Rights and QIP. CUB has got long way to go. You buy the share with a longer term perspective you will have a Maidas touch in it. Further it is also ripe for new management take over.Even if the market tanks the share has got immense revival potential. Hence no more second thinking in accumulating this share.
Hi ramanji,
thanks for your views...i agree this share has not shown the kind of movement which would warrant it to be overpriced...however arnd 5200 if index corrects - mid cap banking will also correct....and i find it very unlikely that CUB will keep going up...i am waiting for the big pop in this if it closes above 32 then i expect a target around 40 on the higher side.
With the impending QIP the stock has got big potential to reach at least above Rs.35 then to Rs.40 and then to Rs.51.The Rs. 300crs qip issue and rights premium will enhance its reserves to over Rs.1000 crs.Then calculate the financial leverage the bank will get for future growth and big ticket expansion.
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