Buy Allahabad Bank for a target of Rs. 200
The Oldest Joint Stock Bank of the Country, Allahabad Bank was founded on April 24, 1865 by a group of Europeans at Allahabad. At that juncture Organized Industry, Trade and Banking started taking shape in India. Thus, the History of the Bank spread over three Centuries - Nineteenth, Twentieth and Twenty-First.
Allahabad Bank is currently trading at a price of 160. At this level, this counter is trading at a PE of 4.6 and less than its BV of 210. It has got the 52 week high of 211. Given the current strength of the market and a buzz in the market that Nifty can touch 6100 level in the current month, it is only a matter of days, when you will be seeing this counter touching Rs. 200.
Allahabad Bank has inked a pact with Piaggio Vehicles to increase its commercial vehicle finance portfolio. The bank has signed a memorandum of understanding with Piaggio for the same on December 3, 2012.This will start showing its impact in coming quarter.
Also, mostly banks gives good numbers in third quarter because of good business.
The market momentum is positive, which is further going to help it. It is only a matter of few weeks, when this bank start trading around Rs. 200.
Investors can take a position for 25% gains from current level.
Regards,
Value Stock Picker
Disclaimer: I have vested interest in the stock.
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