Joined: 01/Jan/2006
Location: India
Online Status: Offline
Posts: 18403
Posted: 04/Jul/2009 at 3:06pm
Originally posted by ashishbarot
I too thought that DISH TV will b removed, basantji do you think in near future voltamp will give more returns than axis. coz currently its trading around 865.
DIsh should be EBIDTA positive by this quarter but yes, it has been a painful stock but the pain is relatively les since everything else has fallen. If the economy recovers then industrials will outperform the tricky part was that Voltamp moved up 150% very very fast.
Originally posted by shadows
Basant., is the bonus issue in NUCLEUS S/W factored in !!! I own this stock,bought recently
I think so but Nucleus is a cheap stock what we have to look at is the trigger that will make it expensive. WHen TCS is available at 7 times Fy11 the second liners will be under pain.
'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
Joined: 22/Jul/2007
Location: India
Online Status: Offline
Posts: 262
Posted: 04/Jul/2009 at 11:37pm
Originally posted by basant
Originally posted by nikhil090
basantjee,
why are we replacing Axis bank from equity desk 11? Is it to reduce the weightage to Financials or you feel that thermax/voltamp will provide better returns than axis bank over 2-3 years?
pl enlighten
Both. ALso if industry recovers the financials will lag the industrials. ALso most of the Private Banks appear fairly valued and as with most large caps we cannot have a significant earnings upgrade.
I thought you prefer Axis Bank over HDFC Bank from a valuation point.
Joined: 01/Jan/2006
Location: India
Online Status: Offline
Posts: 18403
Posted: 04/Jul/2009 at 7:56am
The best way to check any Bank stock is to see how many times it trades at above the Bank rate and equating it with the RoE so assuming a long term bank rate of 8% and Axis has a RoE of say 20% then 2.5 times price to book makes it fairly valued; HDFC Bank does 16% RoE so 2 times price t book is kind of ok valuation then for HDFC Bank you can give it one more time based on their 50 quarter history of relentless profit growth so 3 times is where we reach and there the stock becomes kind of fully valued.
'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
Joined: 22/Jul/2007
Location: India
Online Status: Offline
Posts: 262
Posted: 04/Jul/2009 at 10:00am
Originally posted by basant
The best way to check any Bank stock is to see how many times it trades at above the Bank rate and equating it with the RoE so assuming a long term bank rate of 8% and Axis has a RoE of say 20% then 2.5 times price to book makes it fairly valued; HDFC Bank does 16% RoE so 2 times price t book is kind of ok valuation then for HDFC Bank you can give it one more time based on their 50 quarter history of relentless profit growth so 3 times is where we reach and there the stock becomes kind of fully valued.
Basanatji, Thanks for the clarification. Axis Bank is trading at P/b of 3 times whereas HDFC bank is more that 4 times. But you have removed Axis bank from TED 11 retaining HDFC Bank. Could you please enlighten me the reason ?
Joined: 01/Jan/2006
Location: India
Online Status: Offline
Posts: 18403
Posted: 04/Jul/2009 at 10:50am
Look at Fy10 BV. Also HDFC Bank will get conversion from the parent with the present stcok price.
'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
You cannot post new topics in this forum You cannot reply to topics in this forum You cannot delete your posts in this forum You cannot edit your posts in this forum You cannot create polls in this forum You cannot vote in polls in this forum
Active Topics
Memberlist
Calendar
Search
Help
Register
Login
IP Logged
