Buy CSB Bank; target of Rs 292: Arihant Capital

Rama Steel Tubes: Nomura Singapore buys 1 lakh shares in Rama Steel Tubes. Nomura Singapore bought 1 lakh equity shares in the company via open market transactions on June 15. These shares were acquired at an average price of Rs 371 per share.

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

CSB Bank has posted 88% YoY jump in net profit at INR 115 cr sharply higher than our estimate of INR 72 cr driven by negligible provision. Provision for the quarter was negligible at INR 2 cr vs. INR 93 cr in Q1FY22. NII growth of the bank was strong at 16% YoY driven by 17% YoY growth in net advances. Asset quality remained largely stable with slippages ratio at 0.92% vs. 0.96% QoQ. Headline GNPA ratio declined marginally by 2bps QoQ at 1.79% and NNPA declined by 8bps QoQ at 0.6%. Bank has reported treasury gain of INR 13 cr as compared to INR 1 cr in the previous quarter. NIM declined by 25bps QoQ at 5.2% due to decline in yield. Business growth momentum of the bank started coming back with gross advances growth at 14.8% YoY/2% QoQ led by retail loan book growth of 24% YoY. Corporate and SME book of the bank declined by 2% and 3% respectively on a sequential basis.

We maintain our positive outlook on the bank backed by its stable asset quality, better margins, adequate capitalized level. We reduced our target multiple due to increase in risk free rate and value the bank at 1.6x FY24E ABV which yield a target price of INR 292. We maintain our Buy rating on the stock.

At 17:30 CSB Bank was quoting at Rs 204.85, down Rs 5.30, or 2.52 percent.

It has touched an intraday high of Rs 214.25 and an intraday low of Rs 203.25.

It was trading with volumes of 37,817 shares, compared to its thirty day average of 25,159 shares, an increase of 50.31 percent.

In the previous trading session, the share closed up 2.44 percent or Rs 5.00 at Rs 210.15.

The share touched its 52-week high Rs 361.90 and 52-week low Rs 178.00 on 27 July, 2021 and 20 June, 2022, respectively.

Currently, it is trading 42.11 percent below its 52-week high and 17.7 percent above its 52-week low.

Market capitalisation stands at Rs 3,553.86 crore.