Friday, 14 June 2013

BANKS FUNDAMENTAL ANALYSIS

Basic Fundamental analysis of bank stocks
              Here with we given some fundamental analysis of bank stocks and comparison between Public sector banks & Private sector banks. We produced these data just for awareness before investing. First see the both tables....


 ( In the above given chart, stock prices mentioned as per date on 14-june 2013, EPS & book value's are taken from 2013 financial balance sheet of those stocks)

Now we are rising lots of questions while seeing the above table.   
  • Why all public sector banks are trading below the book value except SBI???
  • Why private sector banks are trading above book value???
  • Why all investors & Traders taking risk by taking high PE value of private sector banks???  
  • Lots of public sector banks are trading with PE value of below 5.
  • But most of private sector banks are trading with PE value of above 10 some of them more than that.
  • If we consider these rates are running based on future means, why don't we consider like, public sector banks will not perform in coming financial years?
  • If public sector will not perform well in future, then where will see our country's economy???
                 Banks are back bone of Indian economy, so banks never go wrong. If banks making loss means all our Indian business & all sectors will get suffer. Even every single person will suffer. Also we are in growing country, so banks have to lead on any growing country. Then only economy will grow well. Now we have to come some conclusion about public sector banks.
  • Public sector banks are looking very cheap compare to their Book value.
  • Investors may start their investments in those banks.
  • Small investor or salaried persons may start to invest in public sector banks for long term by SIP ( Systematic investment plan ) will give good return.
  • Please avoid private sector banks for some days.
  • For long term investments we could see 3-4 times return from here.
  • EPS of each public sector banks are looking very attractive compare to private banks.
  • All public sectors banks are holding good dividend history to his share holders as of now.