18th October 2010 *EdelStar - Buy ALLAHABAD BANK LTD CMP: Rs. 237.4 Target Price: Rs. 275.0* <http://md2.maildirect.in/reports/link.htm?~ZGV2dWJsdEB5YWhvby5pbn4xMjg3MTQ2ODM0fjE1MjM4XzQxMX4yMDEwMTB+VA@@~http://www.edelweiss.in> Our EdelStar for the week is Allahabad Bank Ltd (Edelweiss. in Code: ALLBAN<http://md2.maildirect.in/reports/link.htm?~ZGV2dWJsdEB5YWhvby5pbn4xMjg3MTQ2ODM0fjE1MjM4XzQxMX4yMDEwMTB+VA@@~http://www.edelweiss.in/company/Allahabad-Bank.html>) - has a pan-India presence with the sixth largest network of 2,316 branches across India as on Q1FY10, and a strong presence in the eastern region. Nearly 70% of the bank’s branches are in Uttar Pradesh and eastern India. Its market share in advances and deposits was at 2% and 2.2%, respectively, as on June 2010, its market cap is Rs. 108.3bn and its balance sheet of Rs. 1.2tn. Allahabad Bank dominates the banking sector in central and eastern India. Its network, comprising 2,316 branches, is sixth largest in the country and accounts for 3% of the branch network all over the country. Even though UP and Bihar account for ~40% of its branch network, the contribution from these regions to the bank’s loan portfolio is less than 25%. The new management is increasingly focusing on expanding its reach in southern India, western Maharashtra and Gujarat, thereby lowering the concerns regarding its dominant presence in high risk, low returns states. Despite 20% plus RoE, the bank trades at significant discount to its peers, mainly due to technological backwardness and poor perception of its asset quality. In our view, with the change in management, technology initiatives (through CBS rollout), economic development in eastern states and inroads into other locations, the present discount is likely to narrow down in the future.
Click here to view the detailed EdelStar report on ALLBAN<http://md2.maildirect.in/reports/link.htm?~ZGV2dWJsdEB5YWhvby5pbn4xMjg3MTQ2ODM0fjE1MjM4XzQxMX4yMDEwMTB+VA@@~https://secure.edelweiss.in/?f=s&URL=strategies/strategydetails.aspx?stat=3544> - EdelStar reports have been consistent in giving returns to investors. Click here to view previous performance<http://md2.maildirect.in/reports/link.htm?~ZGV2dWJsdEB5YWhvby5pbn4xMjg3MTQ2ODM0fjE1MjM4XzQxMX4yMDEwMTB+VA@@~http://www.edelweiss.in/cas/images/pow/edelstar_Pr.html>. - EdelStar looks for opportunities in fundamentally strong stocks. Is EdelStar for you? Click here for EdelStar product note<http://md2.maildirect.in/reports/link.htm?~ZGV2dWJsdEB5YWhvby5pbn4xMjg3MTQ2ODM0fjE1MjM4XzQxMX4yMDEwMTB+VA@@~http://www.edelweiss.in/cas/images/pow/edelstar_PN.html>. *Ease of Execution on Edelweiss.in.* Edelweiss.in offers you to execute strategies easily. Visit the ALLBAN report on Edelweiss.in<http://md2.maildirect.in/reports/link.htm?~ZGV2dWJsdEB5YWhvby5pbn4xMjg3MTQ2ODM0fjE1MjM4XzQxMX4yMDEwMTB+VA@@~https://secure.edelweiss.in/?f=s&URL=strategies/strategydetails.aspx?stat=3544>and click on the BUY button. You can also call your equity advisor or 1800-102-3335 (toll-free) *OTHER HIGHLIGHTS* *EDELWEISS TOP PICKS* Monthly Report recommending our research team’s top picks – fundamental and technical. Click here<http://md2.maildirect.in/reports/link.htm?~ZGV2dWJsdEB5YWhvby5pbn4xMjg3MTQ2ODM0fjE1MjM4XzQxMX4yMDEwMTB+VA@@~http://www.edelweiss.in/Research/resdetails.aspx?rid=10000001>to download this month’s report *EDEL WTP* Identify three stocks every week on the basis of technical analysis. Click here<http://md2.maildirect.in/reports/link.htm?~ZGV2dWJsdEB5YWhvby5pbn4xMjg3MTQ2ODM0fjE1MjM4XzQxMX4yMDEwMTB+VA@@~http://www.edelweiss.in/cas/triggermailer/pdf/edel-wtp_PN.pdf>to view the product note. Call: 1-800-1023335 (Toll Free) SMS: EDEL to 5757590 Mail: [email protected]<http://in.mc950.mail.yahoo.com/mc/[email protected]&subject=EdelStar> <http://md2.maildirect.in/reports/link.htm?~ZGV2dWJsdEB5YWhvby5pbn4xMjg3MTQ2ODM0fjE1MjM4XzQxMX4yMDEwMTB+VA@@~http://www.edelweiss.in> *Disclosure:* The author of this report does not hold shares in the company. *Terms & Conditions apply. Broking services offered by Edelweiss Broking Ltd. under SEBI Registration No.: INB/INF/INE231311631 (NSE) & INB011311637 (BSE) Disclaimer: This e-mail message may contain confidential, proprietary or legally privileged information. It should not be used by anyone who is not the original intended recipient. If you have erroneously received this message, please delete it immediately and notify the sender. The recipient acknowledges that Edelweiss Capital Services Ltd. [ECSL] or its subsidiaries and associated companies, as the case may be, are unable to exercise control or ensure or guarantee the integrity of/over the contents of the information contained in e-mail transmissions and further acknowledges that any views expressed in this message are those of the individual sender and no binding nature of the message shall be implied or assumed unless the sender does so expressly with due authority of ECSL or its subsidiaries and associated companies, as applicable. The message is not intended as an offer or solicitation for the purchase or sale of any financial instrument/security or as an official confirmation of any transaction. Before opening any attachments please check them for viruses and defects. This service / information is strictly confidential and is being furnished to you solely for your information. This information should not be reproduced or redistributed or passed on directly or indirectly in any form to any other person or published, copied, in whole or in part, for any purpose. This service / information is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject ECSL and affiliates/ group companies to any registration or licensing requirements within such jurisdiction. The distribution of this document in certain jurisdictions may be restricted by law, and persons in whose possession this document comes, should inform themselves about and observe, any such restrictions. -- You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en.
