Amid strong market sentiment in the stock market, private sector banking stock Karur Vysya Bank(NSE: KARURVYSYA) seems ready for a new boom.
A top brokerage firm has advised buying Karur Vysya Bank.
The brokerage says that the bank is going through a very important transformational journey on behalf of the current management.
The future outlook looks better. This stock has shown a rise of about 55 percent in a year.
Karur Vysya Bank: Price Will Go Up To ₹ 270
The brokerage has advised buying Karur Vysya Bank. Additionally, the target price for shares was set at Rs 270.
On 19 September 2024, the share price closed at 211. In this manner, the stock could rise around 28 percent.
In the past year, the stock increased by over 55%. In 2024, so far the stock has provided a 25 percent return to investors.
The 52-week high of BSE’s stock BSE can be found at 232.55 and the lowest is 125.20. The market capitalization of the company is ₹ 16,905 Cr.
Karur Vysya Bank: What’s The Brokerage’s Comment?
The brokerage was the host of Karur Vysya Bank (KVB) to overseas NDR.
It seems that investors have accepted the transformational journey of the bank led by the current management with stable and better ROA.
The bank acknowledged the challenges of systematic deposit growth, NIM, and credit cost, but also talked about the steps being taken to reduce it.
The bank management said that the bank has one of the lowest LDR (83%) and highest LCR (185%). Thus, the loan CAGR for FY 24-26E can be around 15%.
The brokerage expects KVB to maintain its leadership on RoA/RoE in the medium and small private banks segment.
Quick Fact
| Company name | Karur Vysya Bank |
|---|---|
| Current stock price (19 September 2024) | ₹ 211 |
| Possible target price | ₹ 270 |
| Increase potential from current price | 28% |
| Return in 2024 | 25% |
| Past 1-year return | 55% |
| Market capitalization | ₹ 16,905 crore |
| Loan growth (CAGR for FY 24-26E) | 15% |
| Loan-to-Deposit Ratio (LDR) | 83% |
| Liquidity Coverage Ratio (LCR) | 185% |
| Brokerage expectation | Maintain leadership in RoA/RoE among small and medium private banks |
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