In the stock market, the loudest stories are rarely the most rewarding. Sometimes, the real opportunities are hidden inside businesses that look boring, move slowly, and stay away from daily headlines. Transrail Lighting Ltd is one such company. It doesn’t sell apps. It doesn’t chase trends. It builds power lines, substations, and transmission infrastructure — the kind the world simply cannot function without. And quietly, it may be setting up a long-term compounding story. A Public Listing, Then Silence Transrail Lighting Limited entered the stock markets in December 2024 , backed by strong institutional demand and high investor interest. After listing, the stock rallied — and then something interesting happened. It stopped being exciting. Prices consolidated. Volumes cooled. Most short-term participants moved on. For long-term investors, this phase matters the most — because this is where fundamentals, not hype, start driving returns. What Does Transrail Actually Do? (In O...
TOP 5 PSU BANKS STOCKS
Banking sector is quite robust and quite promising sector. The way the Indian economy will grow very fast to 4 trillion dollars and 5 trillion dollars and so on, all the money will be routed through banks. When we talk about 8 trillion dollars, we hear that it is 8 trillion but in rupee terms it is 85 trillion rupees. So from there, banks get a lot of growth opportunity. The banks we talk about today, whose market caps we talk about, it is difficult to predict at what market caps these banks will be after 10 years from now, The reason is the fast growing Indian economy. The growth of the Indian economy has broken all our estimates, whether it is the estimate of a national agency or the estimate of an international agency. Infect the government has defeated its own agency. With the speed at which the Indian economy is growing, by 2030 we can become the third largest economy in the world. As GDP will grow and its contribution to per capita GDP will increase, it is definitely difficult to predict at what level the bank will be seen 10 years from today. In this, I personally believe that the growth of the bank sector is still in its infancy. It seems to us that some banks have multiplied 5 times 10 times in a few years, but even today if we look at it we have seen a very big growth spark at the very beginning, just like the broad market indices. The banking sector as a whole has started to grow, and there has also been a lot of consolidation in banking. In 2019-20, many reforms were also brought in PSU banks, which were merged with other banks, their loan book was significantly expanded, and now RBI and government of India have complete control over it, The mistakes banks have made before should not be repeated. The banking sector has also accepted all these reforms very open heartedly and has also adopted them and now the focus remains on this point, that whatever bank runs, it will go a long way. PSU banks contribution Indian economy growth. This is very important, whether it is bank accounts, retail accounts, corporate accounts, retail loans, corporate loans or other financial products. PSU banks have quite a lot and are still competing with private banks in product range. To today we will discuss these 5 PSU banks which I feel can bring a lot of growth in the coming 10 years.
1. Bank of Baroda
BANK OF BARODA with a 63.97% stake by the GOI. In FY19, the bank was amalgamated with Vijaya Bank and Dena Bank and became India's third -largest PSU Bank.
BANK OF BARODA Operates a network of 8168 branches in India and 94 branches overseas and 11,475 ATMs located across India with the majority (35%) branches operating in across India. its branches increased from 5500 to 8262 in FY22 due to amalgamation with Vijaya and Dena Bank.
TOTAL INCOME BIFURCATION Q2FY23:-
Net Interest Income- 10,174Crs
Non -Interest Income - 1,826Crs
DOMESTIC LOAN BOOK Q2FY23:
The Co.'s loan book stands at 7.16,737Crs.
Corporate Loans -42% of the Loan book
Retail Loans -22%
Gold Loans-4.5%
Agriculture 14%
MSME-12%
Others 5.5%
RETAIL BOOK:- Home loans account for 56% of the retail book. followed by auto loans (18%), others (21%), and education loans (5%)
INTERNATIONAL BUSINESS:- International Loan Book stood at 1,56,759Crs as of Q2FY23 which is 18% of the total loan book. It has 94 overseas branches/offices across 17 countries. It operates in UK, New Zealand, Kenya, Uganda. Tanzania, Ghana, Zambia, Malaysia and other countries.
SUBSIDIARIES/ JV OPERATIONS:
1. BOB Financial Solutions Ltd - It is a wholly owned subsidiary of the company and its core business is credit card issuance. It was the first non-banking company in India to issue credit cards.
2. BOB Capital Market Ltd - It offers a wide spectrum of financial services. that include Initial Public Offerings. Debt Syndication. Stressed Asset Resolution. Business Valuation. Mergers and Acquisitions, and Stock Broking.
3.The Nainital Bank Ltd (98.5% stake) - The bank became a subsidiary in 1973. It has operations in five states namely, Uttarakhand, Uttar Pradesh, Delhi and NCR. Haryana, and Rajasthan. NBL has 141 branches as on March 31, 2020.
4. India-First Life Insurance Company Ltd (43.3% stake) - It is one of the country's youngest life insurance companies.
5. India Infradebt Ltd (41% stake) - India Infradebt Limited (Infradebt) is India's first Infrastructure Debt Fund (IDF) - NBFC. ICICI Bank Limited. Citicorp Finance (India) Limited and LIC of India are its other shareholders.
CURRENT PRICE-222 MARKET CAP - 115993CR.
HIGH/LOW- 227/146
STOCK PE -5.96 INDUSTRY PE-13.4
BOOK VALUE-203
ROCE- 5.17% ROE 15.1%
DIVIDEND YIELD-2.45%
FACE VALUE-2.00 EPS -35.6
NPM LAST YEAR -15.9%
PROMOTER HOLDING-64.0% PUBLIC HOLDING-7.64%
2.UNION BANK OF INDIA
UNION BANK OF INDIA is engaged in the Business of Banking Services, Government Business, Merchant Banking. Agency Business Insurance, Mutual Funds, Wealth Management etc.
BRANCH NETWORK:- Presently, bank has a network of 8580 branches and 10835 ATMs across India. Its network almost doubled from 4,281 branches and 6,895 ATMs before the merger with Andhra Bank and Corporation Bank.
CUSTOMER BASE: The bank has a customer base of 15+ crore customers post the merger with Andhra and Corporation Bank
INTERNATIONAL BUSINESS:- The bank has a minor presence outside India. The overseas business accounts for 2% of total business of the bank. The Bank has presence in the world's major financial centers of Hong Kong, DIFC, Dubai and Sydney.
CURRENT PRICE-117 MARKET CAP - 86837CR.
HIGH/LOW- 118/60.3
STOCK PE -7.29 INDUSTRY PE-13.4
BOOK VALUE-115
ROCE- 5.02% ROE 11.4%
DIVIDEND YIELD-2.56%
FACE VALUE-10.00 EPS -17.0
NPM LAST YEAR -10.5%
PROMOTER HOLDING-77.0% PUBLIC HOLDING-7.42%
3. CANARA BANK
CANARA BANK was founded in 1906 in Mangalore. Its segments include Treasury Operations, Retail Banking Operations, Wholesale Banking Operations and Other Banking Operations. It has completed over a century in the industry and occupies a premier position in the comity of Indian banks.
BRANCH NETWORK:- Presently, the bank operates 10,500 branches and 13.000 ATMs across India. It also operates 5 international branches in overseas countries. 45% of its branches are located in southern region of India and -60% of its branches are located in rural and semi-urban parts of India. Its branch network increased by 4,000 branches and 4,500 ATMs post the merger with Syndicate Bank.
INTERNATIONAL BUSINESS: The Bank has 5 overseas branches in UK, South Africa, USA and DIFC and UAE. Besides the 5 overseas branches, it has operations in Tanzania through wholly owned subsidiary Canara Bank Tanzania Lid. It also has operations in Russia through Commercial Indo Bank LLC which is a JV with State Bank of India. Presently, International business accounts for 5.6% of total business of the bank.
SUBSIDIARIES:-
1. Canara Robeco Asset Management Co Ltd (51% stake)
2. Canara Bank Securities Lid
3. Canara HSBC OBC Life Insurance Company Ltd (51% stake)
4. CanFin Homes Ltd (30% stake)
CURRENT PRICE-439 MARKET CAP - 79559CR.
HIGH/LOW- 441/269
STOCK PE -5.72 INDUSTRY PE-13.4
BOOK VALUE-430
ROCE- 5.33% ROE 14.8%
DIVIDEND YIELD-2.74%
FACE VALUE-2.00 EPS -76.6
NPM LAST YEAR -12.8%
PROMOTER HOLDING-62.9% PUBLIC HOLDING-12.0%
4. INDIAN BANK
INDIAN BANK is a medium-sized bank which was started in 1907. It offers deposits, loans and services. The Bank's segments include Treasury, Corporate/Wholesale Banking. Retail Banking and Other Banking Operations.
INTERNATIONAL OPERATIONS:- The Bank has three foreign branches located at Singapore, Colombo and Jalina. In the month of December, 2019 Bank had commenced its operations at IFSC Banking Unit (IBU) in Gujarat. International business accounts for 2% of total business of the bank.
DIGITAL ADVANCEMENT: The transactions through digital channels increased from 16% to 29% from FY19 to 20. The bank also enabled 100% of ATM's to accept EMV cards in FY20.
SUBSIDIARIES OPERATIONS:-
L. Ind Bank Housing Ltd (51% stake)
2. Indbank Merchant Banking Services Lid (65% stake)
MERGER WITH ALLAHABAD BANK: Allahabad Bank was merged with the Indian Bank w.e.f 1 April 2020. Shareholders of the Allahabad bank got 115 shares of Indian bank for every 1,000 shares held in it. The bank issued 520 crores worth of equity shares to the shareholders of the merged Allahabad Bank.
CURRENT PRICE-428 MARKET CAP - 53336CR.
HIGH/LOW- 463/252
STOCK PE -7.74 INDUSTRY PE-13.4
BOOK VALUE-398
ROCE- 4.55% ROE 11.8%
DIVIDEND YIELD-2.01%
FACE VALUE-2.00 EPS -55.3
NPM LAST YEAR -12.4%
PROMOTER HOLDING-79.9% PUBLIC HOLDING-4.05%
5.BANK OF INDIA
BANK OF INDIA is an India-based bank. The Bank's segments include Treasury Operations, Wholesale Banking and Retail Banking. The Treasury operations segment includes the entire investment portfolio, which is dealing in government and other securities, money market operations and foreign exchange operations.
BRANCH NETWORK: Presently, the Bank operates 5.083 branches and 5,690 ATMs across India. It also operates 23 branches in other countries.
INTERNATIONAL OPERATIONS: The Bank has 24 Branches (23 operational), representative Office, 4 Subsidiaries and 1 Associate Joint Venture spread across 20 countries of all time zones. Presently, foreign business contribute 12.5% to total business of the bank.
SUBSIDIARIES OPERATIONS:-
L. BOI Shareholding Lid
2. BOI AXA Investment Managers Pvt Ltd (51% stake)
3. BOI Merchant Bankers Ltd
4. STCI Finance Ltd (30% stake)
5. Star Union Dai-Chi Life Insurance Co. Ltd
(29% stake)
CURRENT PRICE-114 MARKET CAP - 46904CR.
HIGH/LOW- 118/66
STOCK PE -8.71 INDUSTRY PE-13.4
BOOK VALUE-147
ROCE- 4.42% ROE 6.33%
DIVIDEND YIELD-1.75%
FACE VALUE-2.00 EPS -13.1
NPM LAST YEAR -7.73%
PROMOTER HOLDING-81.4% PUBLIC HOLDING- 6.11
Whenever we invest in any stock, whether it is a banking stock or a non-banking stock, we should have a very solid reason and we should have a long-term vision as to why we feel that any stock will become a multi-bagger from here. So far as the question of banking is concerned, definitely banking is supported by economy growth and the focus of the government is also that no matter how much money is in circulation, maximum of it should route through banks. We may not be cash less, but we will move towards less cash economy from where digital transaction in banks and the usefulness of other digital products will increase significantly, whether it is retail depositors or corporate depositors, banks will be available to all. There is a need because whatever transaction is done can be handled safely through banks. To definitely, if we look at banking, we will see a lot of growth in the next 10 years. If PSU banks keep themselves updated digitally, keep their products also updated according to the customers of retail and corporate, then definitely there can be a lot of growth from here.