Karur Vysya Bank Ltd has been a stable performer in the Indian banking sector. Its share price has consistently shown growth over the years.
The bank's strong presence in the southern states of India has contributed to its stability. Karur Vysya Bank Ltd has a large network of branches and ATMs across these regions.
The bank's net profit has shown a steady increase, with a CAGR of 10.6% over the past five years. This growth is a testament to the bank's efficient operations and effective management.
Karur Vysya Bank Ltd's asset quality has also improved significantly, with a decline in non-performing assets (NPAs) over the past few years.
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Recent Performance
Karur Vysya Bank's stock price has been on a roll, reaching an all-time high on December 9th, 2024. The bank's consistent growth and outperformance of the Sensex make it a promising choice for investors in the midcap private bank sector.
The bank's financial performance in the September 2024 quarter was strong, with a score of 23 out of 25 and a decrease in gross NPA to 1.10%. However, non-operating income is a concern, indicating a need for sustainable business model.
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Karur Vysya Bank has received a 'Buy' rating from MarketsMOJO due to its strong lending practices and low Gross NPA ratio of 2.27%. The bank has also shown consistent growth and positive results, making it an attractive option for investors.
Here are the bank's share price returns over the past year:
The bank's stock price has also shown consistent growth over the past few months, with a 12.04% increase in its stock price on November 28, 2024. This strong performance is evident from trading above its moving averages and a remarkable 58.46% increase in the past year.
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Financial Analysis
Karur Vysya Bank Ltd has shown a decline in its Return on Capital Employed (RoCE) from 8.61% in 2015 to 5.06% in 2022. The bank's operational profit margin has been consistently 0% since 2015, indicating that it may not be generating sufficient profit from its operations.
The bank's Net Profit Margin (NPM) has fluctuated over the years, ranging from 7.76% in 2015 to 10.59% in 2022. However, its debt-to-equity ratio has been relatively stable, ranging from 12.5% in 2015 to 9.32% in 2022.
Here are some key metrics for Karur Vysya Bank Ltd:
Financial Insights
Karur Vysya Bank has seen a significant return on capital employed, with a 3-year return of 389.11% as compared to Nifty Midcap 100's 88.72%. This indicates a strong financial performance.
Their debt-to-equity ratio has been steadily decreasing over the years, from 12.5% in 2015 to 9.32% in 2022.
The bank's net profit margin has also shown some fluctuations, ranging from 3.11% in 2019 to 10.59% in 2022.
Here's a breakdown of the bank's financial performance:
Their stock returns have been impressive, with a 3-year return of 382.03% and a 5-year return of 272.72%.
Shareholding Pattern
The shareholding pattern of Karur Vysya Bank is a crucial aspect of its financial analysis. As of 30 Sep 2024, the bank's shareholding pattern shows a significant change in ownership.
Promoters held 2.13% of the bank's shares as of 30 Sep 2024, a decrease from 4.30% in June 2024. This indicates a reduction in the promoter's stake in the bank over the quarter.
The FII (Foreign Institutional Investor) category held 15.09% of the bank's shares as of 30 Sep 2024, a decrease from 30.20% in June 2024. This is a significant drop in the FII's stake in the bank over the quarter.
The DII (Domestic Institutional Investor) category held 36.98% of the bank's shares as of 30 Sep 2024, a decrease from 71.32% in June 2024. This is a substantial drop in the DII's stake in the bank over the quarter.
Here is a summary of the shareholding pattern of Karur Vysya Bank as of 30 Sep 2024:
Market Insights
Karur Vysya Bank Ltd's share price has seen a remarkable trend over the years, with only 1.49% of trading sessions witnessing intraday declines higher than 5% in the last 20 years.
The bank's loan book growth has been impressive, with a YoY increase of 16.68% in advances, surpassing its 5-year CAGR of 9.83%. This indicates a strong and consistent growth in the bank's lending business.
Net profit per employee has been on an uptrend, with a growth of 23.99% last year, marking a continuous increase over the last three years.
The bank's stock price has shown a slight decline, moving down by -0.05% from its previous close of Rs 222.79.
Here's a comparison of the bank's stock performance with the Nifty Midcap 100 and Nifty Bank indices over the last three years:
This data suggests that Karur Vysya Bank has significantly outperformed both the Nifty Midcap 100 and Nifty Bank indices over the last three years.
Investment Considerations
Karur Vysya Bank Ltd's stock price has reached an all-time high, outperforming the sector and Sensex. This is a strong indicator of the bank's financial health.
The bank's current TTM PE Ratio is less than its 3 Year, 5 Year, and 10 Year PE, which is a positive sign for investors. This is one of the 16 strengths of the company.
However, one weakness is that the promoter is decreasing their shareholding. This could be a concern for investors, but it's essential to weigh this against the company's overall performance.
Karur Vysya Bank has a strong 1-year performance, outperforming the Sensex by 58.26%. This is a significant margin, indicating the bank's potential for future growth.
Here's a summary of the bank's key statistics:
The bank's stock is currently trading above all its moving averages, indicating a positive trend. This, combined with its strong financials, makes Karur Vysya Bank Ltd a stock worth considering for investment.
News and Recommendations
Karur Vysya Bank Ltd has been a promising investment option for those interested in the banking sector, with a 'Buy' call from MarketsMOJO.
It has gained 5.59% in the stock market on October 17, 2024, outperforming the sector by 0.68%.
However, on October 7th, 2024, the stock saw a decline of -5.36%, underperforming the sector by -3.2%.
Several analysts have recommended buying Karur Vysya Bank, with Emkay Global Financial setting a target of Rs 300 and Asit C Mehta setting a target of Rs 265.
ICICI Securities has a recommended price of 223.55 with a target price of 265.
Here's a summary of the recommendations:
Peer Comparison
Karur Vysya Bank Ltd share price is influenced by its peers in the banking industry. The bank's stock performance is compared to other similar companies, providing valuable insights into its growth and stability.
In the past year, Karur Vysya Bank's stock has returned 32.42%, outperforming its peers such as Bandhan Bank, which returned -34.87%, and City Union Bank, which returned 15.62%. This indicates that Karur Vysya Bank has been a strong performer in the industry.
Here's a comparison of Karur Vysya Bank with its peers in terms of key financial metrics:
This comparison highlights the differences in profitability and valuation between Karur Vysya Bank and its peers. The bank's high return on equity (ROE) and return on assets (ROA) suggest its strong financial performance.
Investors can also evaluate Karur Vysya Bank's stock based on its discounted PE valuation compared to industry peers. The bank's price-to-earnings (PE) ratio is 9.83, which is lower than the industry average of 11.23. This indicates that the stock may be undervalued and presents a buying opportunity.
Frequently Asked Questions
What is the price target for KVB in 2025?
The estimated price target for KVB in 2025 is between 217.00 INR and 325.00 INR, with a median estimate of 259.42 INR. Analysts' predictions suggest a potential price range for KVB in 2025.
Can we buy Karur Vysya Bank shares?
Yes, you can buy Karur Vysya Bank shares. Create a demat account and verify your KYC documents online to get started.
Sources
- https://blinkx.in/insights/history/karur-vysya-bank-ltd-share-price-history
- https://www.indiainfoline.com/company/karur-vysya-bank-ltd/futures
- https://economictimes.indiatimes.com/karur-vysya-bank-ltd/stocks/companyid-12258.cms
- https://www.marketsmojo.com/news/karur-vysya-bank-ltd-124359
- https://www.moneycontrol.com/india/stockpricequote/banks-private-sector/karurvysyabank/KVB
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