IndiaNivesh Securities maintains accumulate on South Indian Bank, target price Rs 14

IndiaNivesh Securities has maintained accumulate rating on South Indian Bank in the long term with a target price of Rs 14. Shares of South Indian Bank ended up 0.2% at Rs 10.12 on Thursday while the BSE Sensex closed 163.37 points up (+0.40%) at 41,306.03.

Company Financials

For the quarter ended 31-12-2019, the company has reported a Standalone Interest Income of Rs 1556.82 Crore, up .42 % from last quarter Interest Income of Rs 1550.31 Crore and up 14.03 % from last year same quarter Interest Income of Rs 1365.33 Crore. The bank has reported net profit after tax of Rs 90.54 Crore in latest quarter.

Investment Rationale


The brokerage said its accumulate rating reflects the cautious stance on South Indian Bank though its valuation model assigns a 40% upside to the stock. Stable asset quality performance can lead to potentially sharp recovery in equity valuations over the next one year, it said.