- by Garima Mohta
- 30th Dec 2020
2 Bank Stocks Which can be Purchased:-
Since the economy is at a recession phase RBI could be interesting buy with a target price close to Rs300 for those who possess a higher risk profile. It is favourable to take the risk since the bank can take care of NPA and is on the leadership position among one of the leaders on the credit card side.
HDFC and ICICI bank should be a part of your core portfolio considering their weightage in terms of valuation. Investors are on hold since the commodity cycle is going up and for companies like Vedanta which are huge in such space. If the stock goes above Rs 200 level then one should start looking at partially booking the profit in the particular stock.
SAIL could be a big beneficiary going forward due to the huge amount of raw material infusion. It is currently available at around 2/3rd of the book value which reflects that a lot of steam is left.
Spandana Sphoorty got listed recently and the interesting point about this company is that their tier-1 capital adequacy is close to 45% which is highest among MFIs. The stock can easily reach the target of Rs 875 over the next 10-12 months.
In the housing finance space the players who are left now are PSU oriented guys or bigger ones like HDFC right now. As traction improves on the overall sector, liquidity is going to be a very important criterion. One winner could be Mahindra Holidays because since they have a business side of the basket and stocks have already moved up a lot over the last 2-3 months.
