Buy Andhra Bank With Stop Loss Of Rs 138

Buy Andhra Bank With Stop Loss Of Rs 138Technical analyst Hitendra Vasudeo has maintained 'buy' rating on Andhra Bank stock with a target of Rs 143.40.

After attaing the said target, the next target for the stock will be Rs 148.80.

According to analyst, the stock can be purchased with a stop loss of Rs 138.

The stock of the bank, on February 04, closed at Rs 140.70 on the Bombay Stock Exchange (BSE).

The share price has seen a 52-week high of Rs 190.15 and a low of Rs 96.26 on BSE.

Current EPS & P/E ratio stood at 24.63 and 5.68 respectively.

Andhra Bank has recorded an increase of 20.36% in its net profits for the three month period ended December 2010 to Rs 331 crore from Rs 275 crore during the same period of 2009.

Bank's overall biz grew by more than 25% to Rs 1,.47,682 crore for the period under review as compared to Rs 1,17,899 crore in the corresponding period of 2009.

The bank's total income during the period zoomed 27% to Rs 2,320 crore.

Whilst the Andhra Banks net interest income climbed sharply by more than 44% to Rs 840 crore, the bank registered its highest NIM ever of 3.91% in the third quarter of the existing financial year as against 3.35% during the similar quarter of fiscal 2009-10. Andhra Bank chairman and managing director R Ramachandran stated that this was mainly because of the bank's capability to professionally supervise its resources and keep the cost of funds low.

Andhra Bank 's priority segment lending surged 23% to Rs 21,585 crore in the third quarterly period as against Rs 17,548 crore, even as advances to farming section increased 21.87% to Rs 10,057 crore as against Rs 8,252 crore.