PNB Gilts locked up on upper circuit

Only listed primary dealer in the government securities, which happens to enjoy a huge market share is PNB Gilts. Company stock hit yet another all-time high in early trade as it was locked up at upper circuit. Stock was up 10 % at Rs 51.30

The Company is engaged in the business of non-banking financial institution. The Company's segments include T-Bills/CP/CD, Corp. Bonds & Debentures, Govt. Securities, Derivatives, Fixed Deposits, and Mutual Fund Comm. As the company provides a gamut of services, it makes the company a good bet in this space.

One of the biggest beneficiary of the demonetisation move will be PNB Gilts as the company would benefit out of active trading that is likely to happen when the banks are full with funds and they would in more likelihood park their money funds in mutual funds, liquid funds, G-sec etc.

Since the demonetisation decision, shares of PNB Gilts have increased by more than 40 per cent in the span of 2 weeks.

The stock looks interesting from an investment point of view with improving financials and company turning profitable in Q2FY17.