Buy Karur Vysya Bank, target price Rs 72: Emkay Global

Emkay Global has buy call on Karur Vysya Bank with a target price of Rs 72. The current market price of Karur Vysya Bank Ltd. is Rs 57.65.

Time period given by analyst is one year when Karur Vysya Bank Ltd. price can reach defined target.

Karur Vysya Bank Ltd., incorporated in the year 1916, is a banking company (having a market cap of Rs 4628.07 Crore).


Karur Vysya Bank Ltd. key Products/Revenue Segments include Interest & Discount on Advances & Bills, Income From Investment, Interest On Balances with RBI and Other Inter-Bank Funds and Interest for the year ending 31-Mar-2021.


Financials
For the quarter ended 30-09-2021, the company reported a Standalone Total Income of Rs 1561.05 Crore, down -2.19 % from last quarter Total Income of Rs 1595.93 Crore and down -6.31 % from last year same quarter Total Income of Rs 1666.26 Crore. The bank reported net profit after tax of Rs 165.45 Crore in latest quarter.

Investment Rationale
The brokerage maintains Buy rating with a revised Dec’22 TP of Rs72 (Rs62 earlier), valuing the bank at 0.7x Dec’23E ABV, factoring in a better liability and capital profile; good/reasonable asset-quality performance in the current challenging times vs. peers; and an expected steady improvement in return ratios.

Promoter/FII Holdings
Promoters held 2.12 per cent stake in the company as of 30-Sep-2021, while FIIs owned 18.92 per cent, DIIs 19.69 per cent.