Friday, 18 September 2009

Invest in Axis Bank, says SP Tulsian

Tulsian told CNBC-TV18, "Capital is a lifeline for everyone but for banks it is more as a lifeline. Axis Bank would be looking for going into the PE and AMC business also, so that means they are trying to spread their wings in the new business because we have all being seeing quite a good comfort in the stock. They have been consistent performers and last couple of months back there were some disappointments on the change of the top managements and there were some discernments amongst the existing ones. But I don think that those things can come in the way, the bank will keep growing like this and if someone takes really good call on the time horizon of about six to twelve months, I think this is an ideal stock and there are three banks which you can go in comfortably in the private sector, HDFC, Axis Bank and ICICI Bank. With a fresh amount of about Rs 3,500 crore getting infused will definitely be growing, though we are talking about a 11% equity dilution but that will be EPS accretive, so with a 6-12 month horizon it is a very good stock to invest and even for the traders, I think this gives a good trading opportunity on an intraday basis of about 15-20 on a daily basis taking a long call those who wants to trade can buy and keep on exiting at a profit of 15-20 on a weekly basis on a trading horizon.”

Source: Moneycontrol

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