Bluechip stock State Bank Of Bikaner & Jaipur CMP : 572

As promised a blue chip stock most undervalued Bank State Bank Of Bikaner & Jaipur is SBI associate bank and has 75% holding by SBI. In a long run it will ultimately get merged with SBI.

With anticipated growth in economy the stock should do well going forward.

Key Positives for stock

1. Undervalued at Forward PE multiple of 5-6
2. Excellent consistent dividend record
3. true value will get unlocked when it merges with SBI
4. Chances of stock split into 2 rupees face value very high to improve liquidity
5. Right issue could come in next 1-2 year
6. Safe ,strong fundamentals and scope of merger can take the stock very high into 4 digits.

Long rem investors (2-3 years) are advised to buy at current levels