Dhanlaxmi Bank
Market cap 550 crore, P/E ~5
Very beautiful set up on monthly chart. Can pick momentum if sustains above 23.
The fundamentals -
There have been a gradual reduction in nnpa and gnpa on qoq basis,
Book size is also increasing along with deposits
Continuous increase in reserves and surplus
Gold Loan Portfolio registered a growth of 25% to reach Rs.2451 Crore (y-o-y)
According to their presentation, “Share of Digital Banking Transaction @ 76.39% as on 30th June 2023 Compared to 69.23% as on 30th June 2022. 100% achievement in Digital Transactions & Merchant Acquisition in the Bank Score card for FY 2022-23 released by Ministry of Electronics & Information Technology (MEITY).” It shows that the bank have provided good e-banking infrastructure and have tech savvy customers.
One more comfort point is that their current MD, CEO who joined in 2021, has served as Chief General Manager of Stressed Assets Resolution Group of State Bank of India and worked with EY India as Senior Advisor.
I believe fundamentals have already shown a real turnaround, now only mcap have to follow.