Thursday, August 7, 2008

Stock Idea: Allahabad Bank

Established in 1865, it is one of the oldest banks in India and though one of the profitable banks too, the first quarter ended 30th June 2008 financial performance of the company has not been too good. Its net profit for the period dropped by around 53%, YoY and this was mainly on account of the provisioning made for Rs 264.08 crore owing to the increase in yield of government securities (G-Sec). The yields went up due to inflation and hence it affected the margins. Apart from this major glitch, the rest of the performance was up to the mark.
Total income increased by 20.48 per cent at Rs (Rs 1,535.10 crore). The total business stood at Rs 1, 23,451 crore, up from Rs 1,03, 378 crore. Operating profit increased by 6.18% at Rs.306.73 crore.
Deposits grew by 16.53% at Rs.73,207 crore while advances went up by 23.87% at Rs.50,244 crore. Net NPA was at 0.75% as against 0.76% in Q1FY08. The total investment portfolio of the bank was at Rs 24,974 crore, of which 58% was in the Held-to-Maturity category while the rest was in Available for Sale category.
The Bank has squashed all rumours and stated categorically that it has no plans to raise capital in the immediate future. Though the Bank has the Boards approval to raise Rs.300 crore, it feels that the current market situation is not right and would prefer to wait out till things stabilize. It is yet to receive the nod from the Government for its proposed rights issue.
The Bank opened 12 more branches during the quarter taking total number of branches to 2165 (excluding 1 Foreign Branch). The bank plans to open a branch in Bangladesh and convert its representative office in China into a full-fledged branch. On the domestic front, it has received Reserve Bank of India’s approval to open 113 branches this year and has also applied to RBI for 180 more branches.
Currently quoted at Rs.64, it is closer to its low of Rs.53 than to its high of Rs.143. Stay invested.
Source: sptulsian.com

Intraday Trading Calls for 7th August

Indian Stock Market may open flat to nagetive. A flat to positive closing expected today.

Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):

GMR INFRA (101.50)
Buy Above 103.20 Target 106.60, 110.00
Sell Below 100.40 Target 96.50, 93.05
SUZLON ENERGY (241)
Buy Above 243.50 Target 247.75, 252.05
Sell Below 239.40 Target 235.05, 231.00
INDIA CEMENT (162)
Buy Above 163.55 Target 166.45, 170.00
Sell Below 160.50 Target 157.05, 153.00
MOSER BAER (97)
Buy Above 98.20 Target 101.20, 104.55
Sell Below 95.80 Target 93.05, 90.00
VOLTAS (138)
Buy Above 139.40 Target 143.05, 147.00
Sell Below 136.50 Target 132.45, 128.00
MERCATOR LINES (93.50)
Buy Above 94.70 Target 98.20, 102.00
Sell Below 92.10 Target 89.05, 86.00

Others for Intraday:
PRITHVI INFO, 3i Infotech, UNITECH, INDIABULLS REALEST, HDIL, DLF.

Med Term Delivery Buy Prithvi Information Solutions 532675 (147) Target 240.
Short Term Delivery Buy Prism Cement 500338 (37) Target 50+

Good Luck

Disclaimer

The information in this publication is provided by http://www.moneybazzar.blogspot.com/ is intended for use for Readers & Traders . Every effort is made to provide accurate information, but http://www.moneybazzar.blogspot.com/ cannot guarantee the accuracy of the information or of the market analysis. This is a newsletter and is for informational purposes only. It is not a solicitation or offer to buy or sell futures. There is a high risk of loss in trading futures. You should not trade with money that you cannot afford to lose. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this newsletter. The past performance of any trading system or methodology is not necessarily indicative of future results.



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