The excel bank of india. Always gives consistence 18-20% rrtn at current rate annual profit of 50k per annum. why stock is not performing well?
Here’s how i broadly analyse bank nifty constituents.
I see three factors playing out mainly
How the sector has been performing as a whole - What are the headwinds and tailwinds? For eg: if NPA numbers are low or high, credit growth, inflation etc
There is an sub sector battle between private n public sector companies. From last 1.5-2 decades, it has all been about private players who dominated against public sector banks but recently, there has been a shift in the leadership. It is PSBs which are outperforming private sectors massively.
How the leadership changes in sub sector. For example: HDFC bank was the dominant force in pvt sector till almost covid times when the leadership baton changed to ICICI bank and the premium that hdfc bank was given as a leader got reduced from its peak and there was an increase in ICICI bank’s premium as bank was performing better in many parameters against its counterpart.
- To answer your question, If markets sees that hdfc bank is back to being the leader in terms of performance, it’s valuation premium shall go up and accordingly the share price too. So,let’s wait n watch for ICICI results too and if market is convinced in this quarter or next quarter, hdfc bank should start performing better in terms of share price appreciation.
There are many factors which influence the performance of a particular stock. Sometimes a company might not be earning profits every quarter and yet its stock price might keep on going higher and higher and vice versa.
HDFCBANK opened 1% up and closed 1% down.
ICICI bank results would set the tone for the sector