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 52.45. 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 4104.71 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 31-12-2021, the company reported a Standalone Total Income of Rs 1600.12 Crore, up 2.50 % from last quarter Total Income of Rs 1561.05 Crore and down -.10 % from last year same quarter Total Income of Rs 1601.80 Crore. The bank reported net profit after tax of Rs 185.48 Crore in latest quarter.

Investment Rationale
The brokerage maintains Buy rating with a Dec’22 TP of Rs72, valuing the bank at 0.7x Dec’23E ABV, factoring in a better liability/capital profile, reasonable asset-quality performance in the current challenging times and prospects of a steady improvement in return ratios

Promoter/FII Holdings
Promoters held 2.28 per cent stake in the company as of 31-Dec-2021, while FIIs owned 15.45 per cent, DIIs 21.32 per cent.