It seems to be a good buy, with a forward PE ratio of around 4, a dividend yield of around 2% and a price to book of just 1!!! Most of the other public sector banks are in the range of 1.5 Price / book, which means that there is scope for further upside. Also the stock has just made a 52 week high, and the charts are also looking good.
Also what i have observed is that these PSU stocks were 8-10 times cheaper in 2002-03, now this basically means that they have appreciated 8-10 times in 7-9 years!!! Now thats impressive performance, and yes not to mention that these stocks have given a constant stream of dividends, and add to it the stability offered by the govt.
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