Time period given by analyst is one year when Karur Vysya Bank price can reach defined target.
Karur Vysya Bank Ltd., incorporated in the year 1916, is a banking company (having a market cap of Rs 3768.80 Crore).
Financials
For the quarter ended 30-06-2021, the company reported a Standalone Total Income of Rs 1595.93 Crore, up 1.93 % from last quarter Total Income of Rs 1565.78 Crore and down -5.75 % from last year same quarter Total Income of Rs 1693.23 Crore. The bank reported net profit after tax of Rs 108.87 Crore in latest quarter.
Investment Rationale
The brokerage expects overall RoA/RoE to gradually improve to 0.9-1%/10-11% by FY23-24E, mainly driven by better growth, NIMs and lower LLP. It upgrade the stock to Buy from Hold, factoring in better asset quality performance in current challenging times and the recent stock correction leading to a significant upside to the TP (unchanged at Rs62 based on 0.7x Sep’23E ABV). The key risks to call/estimates include higher NPA formation (mainly in its SME portfolio) and delay in revival of credit growth.
Promoter/FII Holdings
Promoters held 2.1 per cent stake in the company as of June 30, 2021, while FIIs held 21.1 per cent, DIIs 20.1 per cent and public and others 56.7 per cent.
(Disclaimer: Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.
