Indbank Merchantbanking ( BSE Code: 511473 ) - CMP Rs.45, Target Rs.150
- Thread starter ram.ramanathan
- Start date
Indbank Merchant Banking (BSE: 511473) Fundamentals look very good, I'll keep adding during dips. Indbank is headed a lot higher.
Here is my latest analysis:
1. Indbank Merchant Banking has paid all of its loans as of June 30, 2007
2. Indbank Merchant Banking has wiped out all its losses (accumulated during the years 2001, 2002 etc) using share premium account and profits.
3. Indbank's investments in shares such as Punj Lloyd, Numeric Power etc. is worth around Rs.10 a share. Moreover Indbank has quite a lot of investments that are currently not traded, but if the economy keeps doing well, those assets could be recovered as well. But I'm not counting on it.
4. CMP Rs.38 minus Rs.10 of investments (shares held by Indbank), you are paying only Rs.28 per share
5. For Rs.28 a share you are getting a company which made Rs.7 in the last 2 quarters and an annualised EPS of Rs.15
6. The best part is Indbank's brokerage business is doing extremely well, derivatives business added, number of branches doubled, they're also going to add trading terminals in Indian Bank locations. Note: cost of setting up these terminals are extremely low compared to other brokerages since Indian Bank is the parent company. Indbank is also entering Insurance business.
7. All these 1-6 points are in addition to my original analysis that Indian Bank holds 65% equity (positive), Macro economics for financial companies and investment banks look very attractive.
So I would just buy Indbank and keep it and not sell it until I feel the valuations are right.
If you have any doubts about the holding strategy, please read this thread where I posted my last recommendation:
http://forum.mumbaibull.com/viewtopic.php?t=888
Here is my latest analysis:
1. Indbank Merchant Banking has paid all of its loans as of June 30, 2007
2. Indbank Merchant Banking has wiped out all its losses (accumulated during the years 2001, 2002 etc) using share premium account and profits.
3. Indbank's investments in shares such as Punj Lloyd, Numeric Power etc. is worth around Rs.10 a share. Moreover Indbank has quite a lot of investments that are currently not traded, but if the economy keeps doing well, those assets could be recovered as well. But I'm not counting on it.
4. CMP Rs.38 minus Rs.10 of investments (shares held by Indbank), you are paying only Rs.28 per share
5. For Rs.28 a share you are getting a company which made Rs.7 in the last 2 quarters and an annualised EPS of Rs.15
6. The best part is Indbank's brokerage business is doing extremely well, derivatives business added, number of branches doubled, they're also going to add trading terminals in Indian Bank locations. Note: cost of setting up these terminals are extremely low compared to other brokerages since Indian Bank is the parent company. Indbank is also entering Insurance business.
7. All these 1-6 points are in addition to my original analysis that Indian Bank holds 65% equity (positive), Macro economics for financial companies and investment banks look very attractive.
So I would just buy Indbank and keep it and not sell it until I feel the valuations are right.
If you have any doubts about the holding strategy, please read this thread where I posted my last recommendation:
http://forum.mumbaibull.com/viewtopic.php?t=888
Dear Reji,
i believe you have not read ram's research report properly.
Remember It's a Long Term Script & it would take 8-10 months to reach this target. (if i am not mistaken, anybody please correct me if i am wrong).
Patience buddy, it takes time for a fruit to ripe.
Luckyboy
i believe you have not read ram's research report properly.
Remember It's a Long Term Script & it would take 8-10 months to reach this target. (if i am not mistaken, anybody please correct me if i am wrong).
Patience buddy, it takes time for a fruit to ripe.
Luckyboy
I know that it was a long term one, however slightly concerned, as it never moved upwards.{See the chart} As you mentioned, patiently waiting for the fruit to ripe.
Regards
Reji
Hi Ram Ramnathan,
First let me congratulate on your Modern Dairy call. Good work.
May I attach a chart of Ind Merchant Bank for the benefit of readers of this thread. Thank you. This is a Weekly chart.
Volume is less and looks like the stock is gonna react to the two blue lines region. My personal view. No offence meant.
Regards,
ss
First let me congratulate on your Modern Dairy call. Good work.
May I attach a chart of Ind Merchant Bank for the benefit of readers of this thread. Thank you. This is a Weekly chart.
Volume is less and looks like the stock is gonna react to the two blue lines region. My personal view. No offence meant.
Regards,
ss
Attachments
| Thread starter | Similar threads | Forum | Replies | Date |
|---|---|---|---|---|
| S | Did anyone trade with IndBank online trading facility | Brokers & Trading Platforms | 29 | |
| R | Indbank Merchantbanking ( BSE Code: 511473 ) - CMP Rs.45, Target Rs.150 | Fundamental Analysis | 9 | |
| R | My next pick: INDBANK MERCHANTBANKING ( BSE CODE: 511473 ) | Fundamental Analysis | 17 |
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