Budget Affected Stocks

[wc2007]

The BEst bet of March 08 will be

Ansal Infra

 

[djsinha]

I think banks are also a no. because the 60,000 cr farmer loans canceled are now banks burdon and govt going to give them back to the bank in three years.

I think banks are going to be winners because these Rs 60,000 which the banks would have otherwise shown as bad debt in their balance sheet will now appear as accounts receivable under the assets section.
This will increase the earnings of the banks in the coming quarters and hence decrease the valuation ratios (namely P/E, price/BV) of these banks and make these banks an attractive investment opportunity.

Cheers
djsinha

 

[Knil]

I think banks are going to be winners because these Rs 60,000 which the banks would have otherwise shown as bad debt in their balance sheet will now appear as accounts receivable under the assets section.
This will increase the earnings of the banks in the coming quarters and hence decrease the valuation ratios (namely P/E, price/BV) of these banks and make these banks an attractive investment opportunity.

Cheers
djsinha

I doubt. The picture is still not clear. How and when the banks will be reimbursed Rs.60,000/- crores. What about the interest component for the period from 1/4/2007 to 31/12/2007? Whether banks can take it to their P & L? Nothing is clear.