This multibagger little risky but its has potential to 100%
Yes what i wrote in this title absolutely right.
DHANBANK or Dhanlaxmi Bank Ltd CMP 17.30 as on 20.06.2023
ABOUT :
Dhanlaxmi Bank Ltd was Incorporated in 1927 in Thrissur, Kerala is a publicly held banking company engaged in providing a wide range of banking and financial services including retail banking, corporate banking, and treasury operations with a major concentration in Southern states.
A. Business overview :
1. The bank provides its services through its primary 4 segments -
i)Treasury operations,
ii) corporate wholesale banking,
iii) Retail Banking ,
iv) other banking business.
2. Contribution to Revenue :
i) Retail Banking: ~39% in FY22 vs ~30% in FY 21
ii) Corporate Banking:~ 30% IN FY22 vs ~25% in FY21
iii) Treasury:**~ 31% in FY22 vs 30% in FY21
iv) Interest income increased from Rs.447 Crore to Rs.521 Crore, registering a growth of 17%.
3. Asset quality :
Asset quality improved significantly with Gross NPA coming down by 263 bps and Net NPA by
260 bps on YoY basis to 6.04% and 2.32% respectively.
3. Network Distribution
Bank already has over 520 customer touch points including 247 branches, 263 ATMs and 17 BCs
as on 31st March, 2022 spread across 14 States and 1 Union Territory,
Bank has received in-principle approval from the Reserve Bank of India for the opening of 20
new branches. It also opened a new Regional Office at Hyderabad w.e.f. March 16, 2022.
It entered into the Fintech Era for Micro Lending, Operation management & Technology
services under priority sector lending by associating with New Street Technologies Pvt Ltd.
Bank introduced “Dhanam Paddy Receipt Sheet Loan” in tie up with “SUPPLYCO”
Compounded Profit Growth
10 Years: 34%
5 Years: 32%
B. Technical important levels :
DHANBANK currently trading at a price of 17.25, stock gave breakout from its 13 years down
trend line at the price of 12.50 around early November of 2022 after that make a recent high
of 26.25 in the next month.
As well as the stock is currently trading above 19 year strong support @ 17.20 as per one
monthly time frame.
As per technical analysis my personal view that if the price action of this stock hold above
this support levels @ 17.20 then it can go upto 21.90/ 27.20 levels within a very reasonable
time frame, and 37.05/ 44.00 levels with a long period of time.
*Also remembers in the long run technical levels can be achievable only if the
company good with business and successfully make positive earnings YoY.
DHANBANK or Dhanlaxmi Bank Ltd CMP 17.30 as on 20.06.2023
ABOUT :
Dhanlaxmi Bank Ltd was Incorporated in 1927 in Thrissur, Kerala is a publicly held banking company engaged in providing a wide range of banking and financial services including retail banking, corporate banking, and treasury operations with a major concentration in Southern states.
A. Business overview :
1. The bank provides its services through its primary 4 segments -
i)Treasury operations,
ii) corporate wholesale banking,
iii) Retail Banking ,
iv) other banking business.
2. Contribution to Revenue :
i) Retail Banking: ~39% in FY22 vs ~30% in FY 21
ii) Corporate Banking:~ 30% IN FY22 vs ~25% in FY21
iii) Treasury:**~ 31% in FY22 vs 30% in FY21
iv) Interest income increased from Rs.447 Crore to Rs.521 Crore, registering a growth of 17%.
3. Asset quality :
Asset quality improved significantly with Gross NPA coming down by 263 bps and Net NPA by
260 bps on YoY basis to 6.04% and 2.32% respectively.
3. Network Distribution
Bank already has over 520 customer touch points including 247 branches, 263 ATMs and 17 BCs
as on 31st March, 2022 spread across 14 States and 1 Union Territory,
Bank has received in-principle approval from the Reserve Bank of India for the opening of 20
new branches. It also opened a new Regional Office at Hyderabad w.e.f. March 16, 2022.
It entered into the Fintech Era for Micro Lending, Operation management & Technology
services under priority sector lending by associating with New Street Technologies Pvt Ltd.
Bank introduced “Dhanam Paddy Receipt Sheet Loan” in tie up with “SUPPLYCO”
Compounded Profit Growth
10 Years: 34%
5 Years: 32%
B. Technical important levels :
DHANBANK currently trading at a price of 17.25, stock gave breakout from its 13 years down
trend line at the price of 12.50 around early November of 2022 after that make a recent high
of 26.25 in the next month.
As well as the stock is currently trading above 19 year strong support @ 17.20 as per one
monthly time frame.
As per technical analysis my personal view that if the price action of this stock hold above
this support levels @ 17.20 then it can go upto 21.90/ 27.20 levels within a very reasonable
time frame, and 37.05/ 44.00 levels with a long period of time.
*Also remembers in the long run technical levels can be achievable only if the
company good with business and successfully make positive earnings YoY.
Trade closed: target reached:
As per my technical levels my first target achieved @21.90, Stock made a recent high of 23.40 and currently it hold above @21 this going to be a good support next target would be 27.20.
For make a fresh position wait for some retracement, buy on every dip with multiple tranches.
For make a fresh position wait for some retracement, buy on every dip with multiple tranches.
Comment:
As per my technical levels stock is trading around 30.20 as on 20/09/2023 and made a high of 33.80 on previous trading day so as per now all the target achieved. almost 90 % return within 2.5 month so its better now to book profit.
keep learning and keep investing.
God bless us everyone.