Buy PNB With Target Of Rs 1425

Buy PNB With Target Of Rs 1425Stock market analyst Alpesh Furiya has maintained 'buy' rating on Punjab National Bank (PNB) stock with a target of Rs 1425.

According to analyst, the stock can be purchased with a stop loss of Rs1350.

Furiya added said that the investors can achieve the said target within a period of 15 days.

The stock of the company, on Nov 05, closed at Rs 1376 on the Bombay Stock Exchange (BSE).

The share price has seen a 52-week high of Rs 1385 and a low of Rs 842.10 on BSE.

Current EPS & P/E ratio stood at 133.45 and 10.14 respectively.

On the back of sturdy net interest margin (NIM), the banking institution has recorded an increase of 15.9% in its net profit for the three month period ended September 30, 2010.

The bank's net profit during the period stood at Rs 1,075 crore as against Rs 927 crore during the same period of 2009.

PNB's net interest income during the quarter under review climbed 49.4% to Rs 2,977 crore as against Rs 1,992 crore.

For the first six month period ended September 30, NIM remained at 3.99%.

Moreover, the bank has made announcement about the launching of 2 new slabs of interest rate for domestic term deposits i. e. 7.50% for 555 days and 7.60% for 1000 days.

The bank also said that the novel interest rates would be effectual from Nov 01, 2010 to Dec 31, 2010 unless revised.