An Underpriced Stock!!!

I have found myself a hot stock...A bank owned by the Hindujas of London, and grossly underpriced even if i take into consideration last fiscals earnings. Whats more, it is heard that GE wants a stake in the bank. Thats already caused a lot of interest on the counters on the exchange.

The earnings per share have been as follows:
2001-02 ---> 3.17
2002-03 --->7.59 (Gain of 139% over last year)
2003-04 --->11.90 (Gain of 56% over last year)

Even at last years EPS and the current P/E of 8.4 which is pretty much the average for the banking industry at present the value of the stock is (11.90 x 8.4) = 99.96 ~100 bucks. At the time of writing this the stock is hovering around 66.50.

At current P/E ratio of it translates into an EPS of 7.91 which is highly unlikely.

This is of course the conservative estimate. Even if we assume that the earnings of the bank have flattened out and on reducing trend if we assume the bank to have a 25% gain in its EPS that will make the stock worth (1.25 x 11.90 x 8.4) = 124.95 ~ 125.

All this makes it a very attractive stock in an overvalued market. So before you pester me into revealing the name of the stock, here it is; its IndusInd Bank.