Karur Vysya Bank Ltd.

NSE: KARURVYSYA | BSE: 590003 | ISIN: INE036D01028 | Industry: Banks
| Strong Performer
247.4700 0.68 (0.28%)
NSE Jun 18, 2025 15:46 PM
Volume: 2.4M
 

247.47
0.28%
HDFC Securities
We have reduced our earnings estimates to factor in slower growth and lower margins. Portfolio de-risking and re-balancing on the corporate side over the past 2 years has been a positive. However, the risk of further stress materialising from the legacy book remains. We expect sub-1% RoAAs to persist into FY22E. The change in leadership and consequent intent to pursue the path of existing revamp/ push for more changes remains an uncertainty. We thus maintain NEUTRAL in spite of attractive valuations. KVBs 3Q performance was underwhelming with a slight QoQ de-growth in core earnings as margins declined and advances were flat. GNPAs were stable, but PCR saw a considerable improvement. Maintain NEUTRAL with a TP of Rs 58 (0.9x Dec-21E ABV).
Promoters unpledged 0.96% of shares in last quarter. Total pledge stands at 3.69% of promoter holdings
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