Indbank Merchantbanking ( BSE Code: 511473 ) - CMP Rs.45, Target Rs.150

[ram.ramanathan]

Just an introduction. I recommended Modern Dairies here for a Return on Investment of 530%. http://www.traderji.com/fundamental-analysis/11318-modern-dairies-good-value-stock.html

My next pick is: Indbank Merchantbanking ( BSE Code: 511473 ) - CMP Rs.39

Here is my analysis:

1. Indbank Merchantbanking is promoted by Indian Bank (that's why I mentioned excellent promoters). This is not some Benedict Arnold company or Munnabhai company. Solid promoters who hold around 65% equity.


2. Indbank Merchantbanking is involved in the following businesses: Merchant Banking, Stock Broking, Advisory Services, Depository Participant, Distribution of mutual funds and other financial products. Indbank is also looking at getting into Insurance business (article is in item number 5).


3. Indbank Merchantbanking is growing rapidly. The latest quarter results show a net Profit of Rs.16.86 crores on an equity of Rs.44.37 Crores. EPS just for the latest quarter is Rs.3.8 and forward annualised EPS is more than Rs.15.


Here are some excellent news articles that make Indbank Merchanbanking a solid investment. I always like to provide the exact weblinks so you get the unadulterated full story.


4. http://www.thehindubusinessline.com/2007/08/29/stories/2007082952521300.htm


5. http://www.business-standard.com/banking/storypage.php?tab=r&autono=296246&subLeft=1&leftnm=2


6. http://www.thehindubusinessline.com/2007/03/19/stories/2007031901911400.htm


7. In addition to all this: Indbank Merchantbanking has a solid portfolio of investments in companies it was the underwriter, for example: Punj Lloyd, Numeric Power Systems. These investments are to the tune of Rs.45 Crore.


8. Last but not least: Macro economics and the Banking sector looks extremely attractive. Indbank Merchantbanking fits all of that perfectly.


Now you know why I set the bar so high on myself. Now you know why I'm so confident of setting higher expectations.


Indbank Merchantbanking ( BSE Code: 511473 ) - CMP Rs.39

 

[biyasc]

U
Just an introduction. I recommended Modern Dairies here for a Return on Investment of 530%. You can read my previous recommendation at: http://www.traderji.com/fundamental-analysis/11318-modern-dairies-good-value-stock.html

My next pick is: Indbank Merchantbanking ( BSE Code: 511473 ) - CMP Rs.45, Target Rs.150
(I'm giving a higher CMP just in case the stock is locked in upper circuit for a few days. I'm confident that even if you use Rs.45 as CMP, this stock should give excellent returns)

Here is my analysis in my usual style (point by point):

1. Indbank Merchantbanking is promoted by Indian Bank (that's why I mentioned excellent promoters). This is not some Benedict Arnold company or Munnabhai company. Solid promoters who hold around 65% equity.


2. Indbank Merchantbanking is involved in the following businesses: Merchant Banking, Stock Broking, Advisory Services, Depository Participant, Distribution of mutual funds and other financial products. Indbank is also looking at getting into Insurance business (article is in item number 5).


3. Indbank Merchantbanking is growing rapidly. The latest quarter results show a net Profit of Rs.16.86 crores on an equity of Rs.44.37 Crores. EPS just for the latest quarter is Rs.3.8 and forward annualised EPS is more than Rs.15.


Here are some excellent news articles that make Indbank Merchanbanking a solid investment. I always like to provide the exact weblinks so you get the unadulterated full story.


4. http://www.thehindubusinessline.com/...2952521300.htm


5. http://www.business-standard.com/ban...eft=1&leftnm=2


6. http://www.thehindubusinessline.com/...1901911400.htm


7. In addition to all this: Indbank Merchantbanking has a solid portfolio of investments in companies it was the underwriter, for example: Punj Lloyd, Numeric Power Systems. These investments are to the tune of Rs.45 Crore.


8. Last but not least: Macro economics and the Banking sector looks extremely attractive. Indbank Merchantbanking fits all of that perfectly.


Now you know why I set the bar so high on myself. Now you know why I'm so confident of setting higher expectations.


Indbank Merchantbanking ( BSE Code: 511473 ) - CMP Rs.45, Target Rs.150

See you all at Rs.150. Note: All my picks are long term picks. But do your due diligence and those stocks might take off even sooner.


Good luck!!!

Regards
Ram

excellent analysis ram.

 

[ram.ramanathan]

Hi biyasc

Thanks for your comments.

Ram

 

[dinesh26]

Thank You. You have shown how a recommendation is supported by facts.

 

[AmoghG]

Could you post the links again... they are not opening.

 

[ram.ramanathan]

Hi AmoghG

The links are now opening, please check and let me know.

By the way, I remember your name from Modern Dairies thread (when I recommended it). You asked me some questions about it. Did you invest in it. Modern Dairies went up almost 600%.

Regards
Ram

 

[marcus]

Dear Ram,

I really appreciate your effort, more so for the fact you have presented the reasons with logical reasoning behind your analysis, we all really appreciate this, I only wish some of the so called other analysts will endeavor to emulate your fine example.

Good keep it up.

 

[dvinod76]

Dear Ram,

Fine. You have done a great job. continue this as many stock you can.
I also want to know about TA. Do you like that.

Regards
Vinod D

 

[Luckyboy]

Excellent Work Ram!!!.

One of the finest research i have come across.
Great going buddy, hope to see some more posts from you.

What is the timeframe you feel to reach this target?

I guess 5-7 months. is it?

 

[rkkarnani]

U
My next pick is: Indbank Merchantbanking ( BSE Code: 511473 ) - CMP Rs.45, Target Rs.150
(I'm giving a higher CMP just in case the stock is locked in upper circuit for a few days. I'm confident that even if you use Rs.45 as CMP, this stock should give excellent returns)

See you all at Rs.150. Note: All my picks are long term picks. But do your due diligence and those stocks might take off even sooner.


Good luck!!!

Regards
Ram

Sir, Market has obliged, I got entry on Friday at 38.50, though would have got it at 37 today.
So we are better off anyway. So wish all the enterants in this share and my self too : All the best.
Regards.
-R K Karnani