Super bullish on Dena. Will take out the 80 level soon. My guess is 3 figures by year end. I am still expecting this stock to get into the blow out phase which it will sooner than later. I think Dena`s time has finally come and there is no way that it will trade at such depressed PE ratio`s. Right time for traders and long time investors to get in.
I waited two years for this. I kept on shouting on the top of my voice that this share is on the verge of a massive breakout. I was expecting consolidation to kick in in 2009 and bought in anticipation in 2007. Now 3 digits will come in sonner than i expected. Canara bank is a huge bank especially in the south with over 2500 branches. Just imagine what this will do to the balance sheet of DENA. It will reduce the loan requirements by upto 600 crores for the next 2 yrs as we have heard.Now it will be interesting to see what will be the swap ratio of the Canara-Dena Merger.
Again this rally has just only started investors need to get in asap and hold to realize the benefits pre and more importantly post merger. The blowout continues.......
dear money maker
you are no1 investor because identified the stock when nobody did and now enjoing the rewards of patience.what is the upside of stock now.for last week I estimated that it should reach upto 105 level on its own but the scenario changed now.it is added by another good bank Canara.Canara bank is now trading at 380 level.its PE is also low comapred to other banks like SBI PNB, and industry PE.there is scope for Canara to grow on merger news as it will give this bank grip on west INDIA.it is also sounding like wonderful story and I am not able imagine the rewards of this merger.I wish people think strongly about this mrerger and book some shares.It is natural tendency of people to say positive things when they hold share and start to spread gossip on booking profit.These people try to bring the share down with greed.I wish people imitate your philosophy buying in oppurtunity and sell when it is ripe or hold long term to be highest rewardeee..
Dear RK,
I have always been a value investor and have been repaid handsomely. Every penny i hold in my portfolio today is part of the profit i made by holding fundamentally good and under appreciated companies like Dena. Traders make money and lose money but savvy investors make a killing, by investing in undervalued stocks operating in growing industries. Such stocks give superb returns on a 5-10 yr basis not merely a few months or a year.
Ok so now to your question. Im not a valuation expert but heres a lil number crunching. Dena trades at a 4.5 PE as of today. If we assign Canara`s current PE of 5.27 to dena we come up with a price of Rs. 90. If we assign the industry`s PE of 9.71 to Dena we come up with a price of Rs. 166. My sense is that Dena trades anywhere between these two numbers in the coming days/weeks. Given the fact that its going to be a big bank post consolidation (rem. the small bank`s stock always benefits more) chances are that it trades closer to 166 rather tham 90. I would def. add more if you can. Hope this helps :)
Dena bank should be traded at Canara`s bank P/E of 5.27 and Price book value ration of 1.5 which means in between 92 -105. Don`t expect any price more than 105.
| NIFTY 
