IIMA_Brat

Bullish DCB Bank on Bearish market!!

Long
NSE:DCBBANK   DCB BANK LTD
DCB Bank is 3.5% up in bearish market, This shows why you need to hold stocks with good factor of safety ( PB less than 1)

Even if this bank will go bankrupt, my capital will be safe..!! :D

Why I hold this bank stock ?
- It has PB less than 1 around (0.8)
- financing margin (operation margin) around 4% on average.. when for Kotak this stands at -8 to -10% :D
- Net NPA is less than 2% , which is very great from Indian banking standard.

Still if this doesn't convince you,
- Then, I have used their services while I was traveling to more than 22 EU countries. & Service was top notch, way better than Axis, SBI & Kotak bank (I had their Foreign cards as well)
Hence, first hand experience of their service with great fundamentals has convinced me to ride this bank till I get 200-300% returns! :D

(One more insider info - Blackrock (DSP) also holds this stock in major position)

Disclosure: Invested

~For educational purpose~

Comments

Freely falling from last 15-20 trading sessions. Should i exit my position? Stuck at an average of around 105
Reply
@Himalaya_Sudan:

Hey, to be honest my buying average buying is around 116. I'm holding this till target price of 150, then I will sell 50% of it. (this target is also confirmed by research desk of ICICI mutual funds)

You're seeing this fall just because of weak bank nifty. Check the relative fall of HDFC & Kotak Bank during the same time. so you can get an idea of the strength.

I have studied it's fundamentals & quite sure that it will reach to 150 mark once market stabilizes.

See stock go up & down, few chase momentum & few buy stocks based on fundamentals.

I was too momentum chaser, thus losing big profit chances
( Examples from last year:
1) brought RVNL at 19 sold at 17.5... now it's around before making a high of 34 approx.

2) brought TATA Steel at 320 & sold it at 280... now it's above 900)
lesson from these loss booking is that, never focus on prices going up & down. if you have purchased the stock based on some thesis then just wait once you have entered.
Reply
@IIMA_Brat, fine. I agree.
Reply
also see the 2016-2018 period chart of the bank. This is just the same time. if you will give it sufficient time. You will book decent gains.

but then, it's up to you. if you have faith on Bank's fundamentals then only wait or else, you can book loss to invest in other stock.

For me, I will wait till I found it overvalued (even if it takes 2-3 years!). :)

Hope it helps!!
+1 Reply
@IIMA_Brat, i know the fundamentals thats why still holding it ... but still we fear for the fall.... any expectations from the Q4 results??
Reply
IIMA_Brat Himalaya_Sudan
@Himalaya_Sudan, Check today's 7.5% up move in falling market (or w.r.t. even Bajaj Finance). Operators manipulate lesser know stock to capture bigger pies in market fall. learn to observe such buying pattern by big money. only this will bring conviction to hold on good quality stocks
Reply
Big money is only made by patiently waiting! ~Buffet

Banks are suffering due to moratorium, with recent lift of this rule. I'm expecting average next 2 Quarters.

Then, even with Covid 2nd wave but, with no moratorium moratorium banks with strong fundamentals will outshine all other Banks.

let's give this stock atleast 1-2 years to perform. Afterall, market is not a gambling arena.

This is my biggest conviction bet & I'm heavily invested, so I'm waiting for next 2 years for sure! :)
+2 Reply
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