One of the banking stock that has came in momentum after its Quartely numbers is Yes Bank. Recently, bank reported a jump of 6 percent in its Q1 profit in comparison of previous quarter. With support of good numbers, bank also approves sub division of its equity shares. Both news gave a boost to the stock to participate in market rally and now stock is quoting around its life-time highs. After such kind of interest of investors towards yes bank, i think stock can go for levels of around Rs.2000. Maybe, stock can even go for target of Rs.2100 in short-term. Both fundamentals and technical charts are in support of stock rally and therefore i think one can definitely hold the stock for next target i.e around Rs.2000.
Reliance capital is the next stock which came in momentum after its Quarterly results. Company posts a jump of 15 percent in its profit to Rs.238 crore supported by total income of Rs.4,857 crore for Quarter ended in June. Moreover, Reliance capital is soon bringing its subsidiary AMC IPO which has valuations of around Rs.18,000 crore means equal to current value of its holding company.
Although, one thing is clear from IPO that Reliance capital has much more value than its current value in market. And not only Reliance capital, other group companies i.e Reliance Infra, Reliance Power and Reliance com have also more values than their current valuations. Earlier, i suggested to buy all four major companies of Reliance Group for good returns. My great attention was towards Reliance Capital and Reliance Com. RCap from levels when i gave suggestion of buying has now grown almost 100 percent. But Reliance Com from the time of my suggested advice has felt almost 45 percent only because of Jio launch and its free services.
Now i think if group really wants to ensure its IPO to get good listing, they need to increase their other companies value having lower valuations. And therefore, i think rcom, rpower, rinfra may give good returns in short-term. Reliance capital can show some rally but majority of it should also come in three other stocks. Although from valuation wise, i think that rcom may give best returns from group in short-term. However, its your choice on what should you buy in group.
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