See 25-30% returns in Karur Vysya Bank: Aashish Tater

Aashish Tater, Head of Research, Fortunewizard.com told CNBC-TV18, "Last time we recommended ING Vysya Bank even for two years. We have been recommending the stock as a portfolio bet for a 25-30 percent return year-on-year (Y-o-Y). We see no change in this particular strategy because the way the bank has shaped out, we feel there is likely 25-30 percent return even for this fiscal where we are pegging a target of Rs 630."

He further added, "If you see the strategy that the bank has chalked out, they are trying to double their business over the next three years from current Rs 58,000 crore of disbursement to almost 1.25. The bank is sitting on an ATM size of over 1,400 and more than 550 branches will do an earnings per share (EPS) of almost 1.5 times in next two years giving you a 25-30 percent growth Y-o-Y."

"There has been a very simple logic that we have been picking quality stocks where the asset quality is relatively safe. They have diversified into relatively stable areas. We feel these are stocks and banks where you can take a longer-term view rather than chasing some of the poor quality public sector undertaking (PSU) banks where the question on the quality of assets are very high. So, we are looking at strategic switch and still we feel these are stocks, which will definitely do well even in days to come."

"So, even from 2-3 years perspective if someone is looking for a portfolio bet for almost 25-30 percent Y-o-Y, ING Vysya Bank, Karur Vysya Bank all fit the bill. That is why we are recommending this stock as a portfolio bet."