(BUY CALL FOR BOP)

(BUY CALL FOR BOP)

 

BUY CALL FOR BOP.

Despite the looming Panama verdict. We believe that there are just a few undervalued and suppressed stocks left in the markets which present a minimum downside risk and a maximum upside potential regardless of the verdict. Last time we had recommended BOP at Rs 11. It had gone up to Rs 19. Then came the rumours of a RIGHTS ISSUE and subsequent selling took place. The rights issue seems to have been settled and based on the market behaviour new buyers have entered with confidence that there is no rights issue coming up. BOP is one of the few banks left trading below its actual value. Results should be coming up for BOP and we expect the yearly earnings to clock in around Rs 3.45. Based on this and a PE ratio of just 7, which is still a very low calculated PE, the stock should be trading around 24 Rs. Which is an upside potential of 50% from today’s price. We are issuing a BUY CALL with confidence that it should reach its TP fairly comfortably.
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