Penny stock: South Indian Bank rises by 26 per cent in just one month
The month of November turned out to be a historic one for the markets in many ways. For Sensex, it was the best November since 1993 while BSE Bankex witnessed the best ever performance since its inception. Banks dominated the markets in November and the outperformance of Bankex over Sensex was at its record best.
One bank that many investors may have ignored is South Indian Bank. This penny stock traded at Rs 9.21 per share on Thursday and has gained by more than 26 per cent in just one month.
Compared to its large-cap peers in the private banking space, South Indian Bank is trading at a P/E of 15.28. Axis Bank, with a P/E of 52, is one of the most expensive private banks.
The gross NPAs and net NPAs have declined for the bank marginally in the recent quarter even as FIIs and DIIs have been dumping this stock lately. Pre-COVID, i.e. in January 2020, the stock was trading near about Rs 11 per share.
The stock made a year low at Rs 4.93 per share and is up by 64 per cent from its lows in 2020.