HomeNewsBusinessStocksBuy Karnataka Bank; target of Rs 85: Anand Rathi

Buy Karnataka Bank; target of Rs 85: Anand Rathi

Anand Rathi is bullish on Karnataka Bank has recommended buy rating on the stock with a target price of Rs 85 in its research report dated January 13, 2021.

January 14, 2021 / 21:03 IST
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Anand Rathi's research report on Karnataka Bank

Lower treasury income and higher opex (one-time superannuation expense) led to a ~13% sequential decline in operating profit for Karnataka Bank. With the standstill on NPA recognition, asset quality and PCR improved.

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Outlook

With the expected pick-up in earnings in FY22 and limited downside from current levels, we maintain a Buy, at a TP of Rs 85 valuing it at 0.3x P/ABV on its FY23e book.