Short Term Buy Call For Andhra Bank

Short Term Buy Call For Andhra BankTechnical analyst Sharmila Joshi of Fairwealth Securities has maintained 'buy' rating on Andhra Bank Limited stock to achieve a short term target.

According to analyst, the investors can buy the stock to attain a target of Rs 195.

The stock of the company, on March 24, closed at Rs 141.55 on the Bombay Stock Exchange (BSE).

Current EPS & P/E ratio stood at 24.63 and 5.78 respectively.

The share price has seen a 52-week high of Rs 190.15 and a low of Rs 98 on BSE.

Mr. R Ramachandran, CMD, Andhra Bank stated that the Indian administration is all set to raise its equity stake in Andhra Bank to up to 58% as compared to 51.55% at present.

The equity stake increase is expected to take place before the month-end.

Mr. Ramachandran said, "This might result in a capital infusion in the excess of Rs 11 billion if the government stake is to be kept at 58%."

According to SEBI, the said deal would be accomplished in the form of equity plus premium.

The purpose behind the said augmentation in administration holding is to permit the banking institution to lift up more Tier-II capital and facilitate a follow-on public issue hereafter.