Wednesday, 19 November 2008

Remain invested in ICICI Bank: Tulsian

Investment Advisor SP Tulsian is of the view that one can remain invested in ICICI Bank.

Tulsian told CNBC-TV18, "ICICI Bank is very aggressive in the retail or in the consumer credit finance and more especially on the home and auto finance. But if you see even 15% growth when we are talking of degrowth or banks not even able to maintain or hold their bottom line etc, but if you expect a 15% of growth also is feasible. Coming on the fundamentals, the share is ruling below book value, which we have seen in very rare instances that too in the case of leading frontline private sector banks can understand for the second run private sector banking stocks where they are ruling close to book value. But here the book value of the stock is about Rs 450 and its ruling at about Rs 375 and even scaling down the growth prospects and all that the bank should be taking cues from the first half results and should be able to post an EPS of Rs 30."

He further added, "If you see their consolidated valuation taking into account their insurance and other valuations also it has much more value than what it has been ruling on and this stock seems to be more a victim of the rumors and the fear, which is happening in case of this bank in front of deposit withdrawal and maybe the confidence crisis but we have seen Mr. Kamath and even the Finance Minister has said that there is nothing of a problem in case of this bank and all that. One can remain invested and this is more of a fundamental stock you cant really play in F&O except for a range of Rs 20 to Rs 30 but if you are a long term investor this is the very good stock. Once we come out of this liquidity crunch and probably they will again be able to bounce back and their net worth is over Rs 50,000 crore all this augurs well for the stock at these levels and if you are an investor remain invested and even one can make a buy at these levels."

Disclosure: Analyst holds DLF.

Source: Moneycontrol

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DISCLAIMER: The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.