Stock recommendations- Karnataka Bank & APL Apollo Tubes

Karnataka Bank

Karnataka bank is a class scheduled bank in India incorporated at Mangalore in 1924. Bank has 4.84 Million customers. Bank reported a sales turnover of near Rs 760 Cr in the second quarter FY 2012. Its sales turn over in the second quarter FY 2011 was near Rs 570 Cr. About 30% increase can be seen in the sales turn over. Bank reported a net profit of near Rs 41 Cr in the second quarter FY 2012. Its net profit in the second quarter FY 2011 was near Rs 29 Cr.  About 40% increase can be seen in the net profit.

Market cap of the bank is Rs 1400 Cr.  Book value is Rs 129.06. Price/Book ratio is 0.58.  P/E stands at 6. It is clearly below the industry P/E of 10. Bank reported annual sales of near Rs 2370 Cr in the FY 2011. Bank is now available at the half of its annual sales. The stock price created a 52 high of Rs 154 on 3 January 2011. The stock price also created a 52 week low of Rs 72 on 18 November 2011. The stock is now trading in the levels of Rs 75. It is a clever buying opportunity for long term investors. Long term target is Rs 130.

APL Apollo Tubes

Company is engaged in the manufacturer of ERW black trube sand pipes, Hot dipped galvanized and Pre galvanized tube. The brand APL Apollo is very popular in South India. Company reported a sales turnover of near Rs 240 Cr in the second quarter FY 2012. Its sales turn over in the second quarter FY 2011 was near Rs 150 Cr. About 70% increase can be seen in the sales turn over. Company reported a net profit of near Rs 5 Cr in the second quarter FY 2012. Its net profit in the second quarter FY 2011 was Rs 7.66 Cr.

Market cap of the company is Rs 300 Cr. Book value is Rs 106.83. Price/Book ratio is 1.38. P/E stands at 10. It is above the industry P/E of 6. Company reported annual sales of near Rs 590 Cr in the FY 2011. Company is available below its annual sales. The stock price is hitting new highs. The stock price is now trading in the levels of Rs 140. It is a tremendous buying opportunity for long term investors. Long term target is Rs 160/

Stocks recommended by San Joseph

2 Responses to Stock recommendations- Karnataka Bank & APL Apollo Tubes

  1. ravi S P says:

    Karnataka Bank is doing badly.Its Management is not professional in the last couple of years. Advances have a problem as their rate of interest is high amongst banks.Their advance quality is therefore bad. NPA is increasing at a very rapid pace. ,It is probably the only Bank to have an NPA level @4percent!
    with such a bad balance sheet,how do you predict a 40 percent increase in profit?

  2. San Joseph(Author) says:

    Hai, I am very happy to inform all viewers that the long term target has been achieved in this stock. How many of you made it? keep touching with us for long term stock ideas

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