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City Union Bank
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Face value of one equity share?
Posted by :
sandeep2004sTracked by: 0 Boarder
Instead of City Union Bank (CUB) one can try DCB Ltd (BSE Code--532772) which at the CMP of Rs.25.3 looks very attractive, especially considering that the facts that this scrip is available near its 52-week low price. The book value of the shares of the company is a whooping Rs.36.4. DCB Ltd is a small bank having market cap of only Rs.440.98 and hence it is prone to be taken over by some large banks. Off late many FIIs who were holding the shares of the company has exited indicating that further rout in the share price is minimum.
Besides the fact that State Bank of India (1%) and Housing Development Finance Corporation Ltd (2.32%) and Tata Capital Ltd (3.78%) are holding shares of the company could give confidence to the share holders and at the same time increase speculation as to whether it could be taken over by SBI or HDFC Ltd or whether Tata group will increase its stake in the company or not.
Therefore, though the management intends retaining the individual identity, the possibility of a merger with a larger bank cannot be ruled out in the long term.
Besides this Development Credit Bank Ltd. is one of the fastest growing private sector scheduled commercial banks in India. Its network of branches and ATMs are increasing at a good pace throughout India.
Besides the Price/BV is at only at 0.695 (1.1 in case of CUB), which is quite good comparing to its peers like Federal Bank, Karnataka Bank etc.
Moreover at the CMP of Rs.25.3, the share is available near the IPO price of around Rs.26. It is interesting to note that at that time it was valued at 1.4 times its Book Value, while it now valued at almost half (0.695) to its book value---hence gives tremendous scope for growth, considering the a slew of measures the company took in the last fiscal(whose fruits are expected to come in the days ahead).
The Bank provides the following Treasury Products to its customers with effective and customized solutions for their business:
## Rupee Options
## Currency Swaps
## Interest Rate Swaps
## Commercial Paper
## Certificate of Deposit
## Spot & Forwards
## Foreign Exchange Rates
## Foreign Currency Deposit (FCNR)
It can be purchased at the CMP of Rs.25.30 with a target of Rs.55--Rs.65, in the next 3 to 6 month time frame.
However, there are some negative factors as well:
(a) High equity capital of Rs.174.3 Cr (Rs.32 Cr in case of CUB)
(b) Low promoters` stake.
Thanks for reading my analysis but please buy the scrip only if you are convinced.
...
In reply to:
Face value of one equity share?
Posted by :
sakethraam
The face value of the share is Re.1 and the total dividend paid for the year 2007-2008 is 50% (0.50p per share) 
Face value of one equity share?
Posted by : sakethraamTracked by: 0 Boarder
The face value of the share is Re.1 and the total dividend paid for the year 2007-2008 is 50% (0.50p per share)...
In reply to:
Face value of one equity share?
Posted by :
Leave it.
What is the face value of one equity share ans dividend paid for each share for the current year ending 31-03-08.
v.krishnamoorthy
Face value of one equity share?
Posted by : Leave it.Tracked by: 0 Boarder
What is the face value of one equity share ans dividend paid for each share for the current year ending 31-03-08.
v.krishnamoorthy...
45% growth
Posted by : dr.nareshTracked by: 0 Boarder
look out!a bank with almost 45% growth and 50% div.one can expect a double rate from here,maybe a multi-bagger on a 3-4 yrs.outlook....
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