Hold Karur Vysya; target of Rs 435:Axis Securities

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Axis Securities's research report on Karur VysyaKarur Vysya Bank (KVB) reported better operating performance delivering a PAT of Rs. 152 cr for Q3FY16 (34% YoY) against Rs. 114 cr YoY and Rs. 142 cr QoQ. Loan growth was muted as reflected in the advances which grew by only 6% YoY. During the current quarter, cost to income for the bank inched lower to 48% against 51% YoY (however higher 45% QoQ). Consequently, NIMs improved during the same period by 8 bps QoQ to 3.47% compared to 3.39% seen in the previous quarter. Also, asset quality remains stable, as stressed assets, as % of loans, declined by 40bps QoQ to 7.6% of loans.We like the bank considering its diversified asset book and gradual improvement in liability franchise, inclined towards retail deposits. However we remain cynical about bank’s revenue growth considering weak credit growth and higher stressed asset book. KVB is currently trading at 1.2x FY16 adj. P/ABV. Given the stress on asset quality, we continue to remain cautious. We value the bank at 1.1x FY17E adj. P/ABV and have a target price of Rs. 435. Thus we maintain a HOLD rating on the stock with a target price of Rs. 435 implying 2% upside.For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Read More