Buy Oriental Bank of Commerce: Vaibhav Agrawal
Oriental Bank of Commerce does look reasonably good for about 12-15% upside.
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| Updated: Vaibhav Agrawal, VP Research, Banking, Angel Broking, in a chat with ET Now, shares views on banking stocks.
From the mid-tier lot, the smaller PSBs?
Almost most of smaller PSBs, we do not see more than 10% to 12% upside. We are in fact neutral on some of them as well right from a Vijaya Bank to a UCO Bank or a Central Bank where we do see a certain amount of headwind to earnings in the next couple of quarters. There are a few stocks which have really been battered down quite a lot in the last 5 to 6 months. For instance at these levels, Oriental Bank of Commerce does look reasonably good for about 12-15% upside. So that is one stock that one can look at, even Dena Bank is looking very cheap on the valuation front at least even if there is limited earnings visibility. So at least these stocks can be gone for but right now, our recommendation would be really to go for the strong large caps.
From the mid-tier lot, the smaller PSBs?
Almost most of smaller PSBs, we do not see more than 10% to 12% upside. We are in fact neutral on some of them as well right from a Vijaya Bank to a UCO Bank or a Central Bank where we do see a certain amount of headwind to earnings in the next couple of quarters. There are a few stocks which have really been battered down quite a lot in the last 5 to 6 months. For instance at these levels, Oriental Bank of Commerce does look reasonably good for about 12-15% upside. So that is one stock that one can look at, even Dena Bank is looking very cheap on the valuation front at least even if there is limited earnings visibility. So at least these stocks can be gone for but right now, our recommendation would be really to go for the strong large caps.
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