Buy CSB Bank, target price Rs 313: LKP Securities

LKP Securities has buy call on CSB Bank with a target price of Rs 313. The current market price of CSB Bank is Rs 251. Time period given by analyst is a year when CSB Bank price can reach defined target.
CSB Bank, incorporated in the year 1920, is a banking company (having a market cap of Rs 4346.69 Crore).

CSB Bank key Products/Revenue Segments include Interest & Discount on Advances & Bills, Income From Investment, Interest and Interest On Balances with RBI and Other Inter-Bank Funds for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-09-2022, the company has reported a Standalone Total Income of Rs 600.12 Crore, up 1.58 % from last quarter Total Income of Rs 590.78 Crore and up 8.01 % from last year same quarter Total Income of Rs 555.64 Crore. The bank has reported net profit after tax of Rs 120.55 Crore in latest quarter.

Investment Rationale
Factoring double digit advance growth, stable NIMs and lower credit cost; the bank may post 22% PAT growth in current fiscal year. Attractive valuation (1.2xFY24E Adj. BVPS) makes the stock rewarding factoring FY23E/FY24E ROA of 2.1%.

Promoter/FII Holdings
Promoters held 49.72 per cent stake in the company as of 30-Sep-2022, while FIIs owned 5.06 per cent, DIIs 10.49 per cent.