PUBLIC SECTOR BANKS AT DIRT VALUATIONS!!!!

Company Name	Last Price	52 wk	52 wk	Market Cap		52 WEEK LOW	52 WEEK HIGH	Current P/BV
		High	Low	(Rs. cr)	Book Value	P/BV	P/BV
SBI	2,129.00	2,474.80	1,576.00	142,865.45	1,251.00	1.98	1.26	1.70
Bank Of Baroda	739.95	881	606.25	30,514.60	666.29	1.32	0.91	1.11
PNB	785.65	1,091.00	659	26,647.57	777.39	1.40	0.85	1.01
Canara Bank	382.8	566	306	16,958.04	465.57	1.22	0.66	0.82
Bank Of India	293.75	408	253.8	16,876.53	343.35	1.19	0.74	0.86
IDBI bank	96.25	121.5	77.15	12,304.77	151.97	0.80	0.51	0.63
Union bank	187.85	273.85	150.1	10,342.06	235.91	1.16	0.64	0.80
Oriental Bank	279.95	324	190.1	8,167.85	379.93	0.85	0.50	0.74
Idian bank	186.05	265	152	7,995.87	214.94	1.23	0.71	0.87
Allahabad Bank	140.45	211.4	103	7,022.87	192.92	1.10	0.53	0.73
Syndicate Bank	102.5	121	67.45	6,169.99	133.5	0.91	0.51	0.77
IOB	75.35	119	66.2	6,005.38	135.34	0.88	0.49	0.56
Corpoartion bank	403	528.45	335.5	5,969.61	558.7	0.95	0.60	0.72
Andhra Bank	103.5	138.5	79	5,791.66	133.66	1.04	0.59	0.77
Central Bank	70.7	111.8	62.3	5,204.34	121.42	0.92	0.51	0.58
Uco bank	74.45	95	44.8	4,948.78	94.72	1.00	0.47	0.79
Dena Bank	101.5	104	47.5	3,553.09	122.59	0.85	0.39	0.83
Bank Of Maharashtra	47.55	58.7	37.75	2,803.51	63.77	0.92	0.59	0.75
Vijaya bank	53.25	68.9	43.85	2,638.75	76.17	0.90	0.58	0.70
St Bank Of Bikaner	369	470	302.25	2,583.00	594.98	0.79	0.51	0.62
St Bank Of Travancore	510	671.35	451	2,550.00	773.23	0.87	0.58	0.66
St Bank Of Mysore	495.3	610	408.1	2,317.99	729.22	0.84	0.56	0.68
United Bank	61.5	87.15	45.55	2,220.14	114.65	0.76	0.40	0.54
Punjab & Sind	68.9	94.65	56.05	1,613.69	141.73	0.67	0.40	0.49
					WACC	1.02	0.60	0.78

Upside Potential Is 0.24 to the Current P/BV

Now its always heard that the PSU's are lagging behind and there is always a huge risk  for the increase in their NPA's . Now what made us to do valuation on the Psu banks as they are quiet undervalued to the CMP and compared to the Private Banks.For traders there is always an opportunity to mint money as well as for the investors. Now what is the strategy The most of the PSBUs they trade low as to 0.60 to the book value and the exit takes to around 1.25 max. this is a really a very good strategy to enter and exit in PSUs stocks. Now one has to ask question to themselves yesterday we saw a Rate cut by 25 BPS and SBI is the biggest beneficiary from it. why previously there were questions raised to the NPAS and deterioration in the asset quality of banks. NOW the countrys central government wont take any measure to revive the PSBUs banks they have to. one should always have the PSBUs in their portfolio at lower levels of their P/BV . with the recent lows. We recommend a buy in all the PSBUs Banks partially positions can be added. If Nifty has to Move up its the banking stocks that will have to participate in the rally. Its always said  Banks are the backbone of the Economy. The total contribution in the GDP of the service sector is around more than 50% which itself indicates this is it.banks will always move higher as for any transaction in by a common man and by different sectors in the economy they have to pass through these banks and thats what drives us to Quote buy when the Banks are near lows to P/BV of 0.70.............