1. You could call it an investor bias. But somehow, I believe that if the India growth story has to continue.. at whatever rate it may .. 5,6, or 9%, two sectors that will have to play a major role in it - Power & Finance.. the lifeline for any industry.
2. The last blog was about an industry that was into " Financing Power". This time it is a pure finance play... Corporation bank. The bank is currently quoting at 0.7 times its book value, has a PE of 3.5 and is available at a market cap of 5000 crores. 50 % stake is Govt of India, 25 % is with LIC. Yes.. NPAs remains an issue and rising interest rates a cause of concern. I still believe that it is available at a great discount. In addition a dividend yield of 6% .
3. More detailed analysis follows. Invest at your own risk. I am positive on this stock as its valuations are compelling vis s vis other PSU banks and have started taking small positions as and when I see small drop in prices. regards
2. The last blog was about an industry that was into " Financing Power". This time it is a pure finance play... Corporation bank. The bank is currently quoting at 0.7 times its book value, has a PE of 3.5 and is available at a market cap of 5000 crores. 50 % stake is Govt of India, 25 % is with LIC. Yes.. NPAs remains an issue and rising interest rates a cause of concern. I still believe that it is available at a great discount. In addition a dividend yield of 6% .
3. More detailed analysis follows. Invest at your own risk. I am positive on this stock as its valuations are compelling vis s vis other PSU banks and have started taking small positions as and when I see small drop in prices. regards
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