Is NSE:STAN a Great Stock or Not?

POSTED BY Rokhan ON January 30, 2014 9:22 am COMMENTS (5)

So we have Standard Chartered trading at Rs 120 in India when its EPS is Rs 123 and BVPS is Rs 640

Doesn’t seem like a killer price? Why is the stock price so low? Even the 52 week h/l is 135/96.

Other banks trade around P/E of 4

5 replies on this article “Is NSE:STAN a Great Stock or Not?”

  1. ashalanshu says:

    Dear Rokhan, nothing wrong in your thinking but be ready to wait for a very long time to reap the benefits of your hard work.

    Thanks

    Ashal

    1. Rokhan says:

      Thanks Ashal .. appreciate your advice.

  2. Sumit says:

    I think, STAN could be a very good value pick, but the holding period should be very long.

  3. Rokhan says:

    Thanks for the reply Ashal.

    In Nov 2013, RBI released new norms for foreign banks that if they set up wholly owned subsidiaries in India, they will be treated like “near national” banks when it comes to opening branches.

    Please see this: http://www.livemint.com/Politics/jwKt9QvETehG9bJVZ2tKrJ/Citibank-StanChart-HSBC-may-have-to-become-wholly-owned-su.html

    Worldwide, I think StanChart is a pretty good bank to own, and they already have the most number of branches in India (compared to other foreign banks). So I think for value investing, its a good stock to own. What are your thoughts?

  4. ashalanshu says:

    Dear Rokhan, there are restrictions in branch extensions (new branch opening), other issues from RBI, that’s the reason the IDR of STAN are listed with a discounted PE in comparision to pure Indian banks.

    Thanks

    Ashal

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