Buy CSB Bank; target of Rs 320: ICICI Direct
ICICI Direct is bullish on CSB Bank recommended buy rating on the stock with a target price of Rs 320 in its research report dated January 24, 2022.
January 31, 2022 / 12:30 PM IST
"India’s specialty chemicals industry is a decadal growth opportunity and it is still not too late to participate in the value creation process. We prefer CRAMS/CSM players Navin Fluorine (Navin) and PI Industries (PI) as they provide long-term earnings visibility. We also like UPL due to robust growth outlook and reducing debt concerns and SRF due to rising contribution from the chemicals business," JM Financial research report.
ICICI Direct's research report on CSB Bank
CSB Bank is a south based private sector bank with Kerala contributing ~50% of the total business. Changed strategy in various aspects of lending has led to transformation and improved performance in the past few years. Gold, SME key lending segments comprising 37%, 13%, respectively, of book • Liability franchise is healthy with loyal customer base of ~19 lakh.
We retain our BUY rating on the stock. We value CSB Bank at ~1.7x FY24E ABV and keep unchanged our target price at Rs 320.