Hem Securities has come out with its report on CSB Bank. The research firm has recommended to "Subscribe'' the IPO in its research report as on November 21, 2019
Hem Securities' IPO report on CSB Bank
CSB Bank is one of the oldest private sector banks in India with a history of over 98 years and have a strong base in Kerala along with significant presence in Tamil Nadu, Karnataka, and Maharashtra. Bank offer a wide range of products and services to its overall customer base of 1.3 million as on September 30, 2019, with particular focus on SME, Retail, and NRI customers. Bank deliver its products and services through multiple channels, including 412 branches (excluding three service branches and three asset recovery branches) and 290 ATMs spread across 16 states and four union territories as on September 30, 2019, and various alternate channels such as micro ATMs, debit cards, internet banking, mobile banking, point of sale services and UPI.
Valuation and Outlook
Bank is bringing the issue at p/b multiple of approx. 2.1-2.17 at price band of 193- 195/share. Although bank has shown losses consecutively from FY17 to FY19 however it has turnaround on bottmline level in H1FY20. Also, bank has strong channel network and trusted brand in South India with strong capital base post FIHMs investment in bank. Bank has well established SME business with retail offering driven by strong gold loan portfolio as gold loan advances offer benefits of hassle-free lending and lower operational costs.. CSB with its stable and granular deposit base has professional and experienced management with strong and independent Board which infuse optimism in future prospects of bank. Hence we recommend “Subscribe” on issue for listing gain as well as long term investment .
For all IPO stories, 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.LIVE NOW... Video series on How to Double Your Monthly Income... where Rahul Shah, Ex-Swiss Investment Banker and one of India's leading experts on wealth building, reveals his secret strategies for the first time ever. Register here to watch it for FREE.