Anand Rathi is bullish on Karur Vysya Bank has recommended buy rating on the stock with a target price of Rs 49 in its research report dated June 29, 2020.
Anand Rathi 's research report on Karur Vysya Bank
Higher margins and lower credit cost led to a sharp ~40% y/y earnings growth for KVB. Asset quality and PCR improved. Given the bank’s strong capitalization, coverage and liquidity than its regional peers, it is better placed to withstand Covid’19-related stress.
However, with the anticipated slower growth and lower earnings in FY21, we cut our P/ABV multiple to 0.6x (earlier 0.8x), with a lower TP of `49 (earlier `66).
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