Karur Vysya Bank Ltd.

NSE: KARURVYSYA | BSE: 590003 | ISIN: INE036D01028 |Industry: Banks
|Momentum Trap
Durability score
35 /100
Valuation score
29.8 /100
Momentum score
49.1 /100
Market Capitalizati...
4,959.7 Cr.
AVG Broker Target
76.3
PE TTM Price to Ear...
22.8
Karur Vysya Bank Ltd.    
03 Nov 2019
62.05
-0.72%
HDFC Securities
We build higher slippages and slightly slower growth as we expect current trends to persist for longer due to extraneous factors. Operating and asset quality metrics still do not reflect the claimed shift in practices. Legacy issues continue to drag. Still, , the stock's under-performance implies most of the bad news is priced in. Our BUY draws mostly from inexpensive valuations. Despite KVB's numerous stumbles, we believe a 1.4x target multiple is fair, as it can turn around quickly with even a mild macro tailwind. KVBs asset quality was optically stable in 2Q as GNPAs dipped ~3% QoQ, aided by higher WOs and an ARC sale even as slippages remained elevated. Stunted growth and NIM compression persisted. Maintain BUY (TP of Rs 88, 1.4x Sept-21E ABV of Rs 63), on inexpensive valuations.
Karur Vysya Bank Ltd. has lost -20.19% in the last 6 Months
Karur Vysya Bank Ltd.    
30 Jul 2019
62.05
-0.72%
Nirmal Bang
Disappointment on all fronts; Recovery hopes move to FY21E Advances stood at Rs. 49,182 Cr vs. Rs. 47,886 Cr in Q1FY19, a tepid growth of 3% YoY (a 10 quarter low). Retail loans continued to maintain growth momentum at 32% YoY contributing 22% to the overall advances vs 17%...
Promoters pledge reduced to 20.03% of holdings in Sep 2019 qtr.
Karur Vysya Bank Ltd.    
26 Jul 2019
62.05
-0.72%
HDFC Securities
Even as elevated slippages play out (likely to continue) in accordance with earlier guidance, no further negative surprises on the asset quality should come as a relief to investors (although growth remains stunted). While underlying strategies at the bank have not shown a paradigm shift some change is visible, and return ratios will improve gradually. More importantly, most of the bad news has been priced in. Given the recent underperformance (and no fresh bad news), we UPGRADE TO BUY with a TP of Rs 87 (1.4x Jun-21E ABV of Rs 62). Elevated slippages (as guided) and stunted growth made for an in line qtr. With most of the bad news priced in (and no more of it expected), we UPGRADE TO BUY (TP of Rs 87, 1.4x Jun-21E ABV of Rs 62).
Karur Vysya Bank Ltd. is trading at high day volume of 2.7M.
Karur Vysya Bank Ltd.    
26 Jul 2019
62.05
-0.72%
Chola Wealth Direct
Background: Karur Vysya Bank (KVB) is one of the mid-sized banks in the private sector space, operates through a network of 778 branches and ~ 2,177 ATMs and cash recyclers. KVB's business - 82% is concentrated in South India with about 68% of its branch footprint in Tamil Nadu and Andhra Pradesh. As of 1QFY20 the total business stood at INR 1108bn. The bank is capitalized with a total CAR of 15.9% (Basel III). Gross NPAs were reported at 9.17% with...
Karur Vysya Bank Ltd. is trading above it's 100 day SMA of 59.9
Karur Vysya Bank Ltd.    
26 Jul 2019
62.05
-0.72%
buy
KRChoksey
Muted balance sheet growth with Advances increasing 3% YoY and Deposits growing 7% YoY NII at INR 584 Cr. It was almost flat YoY/ (down by 5.7% QoQ). Non-Interest Income was up 5.9% YoY basis (down 0.96% QoQ). Total Income at INR 854 Cr. is up 1.8% YoY/ down by 4.25% QoQ; PPOP at INR 445 Cr. is down by 3.15% YoY/ 4.23% QoQ. The bank has provided for INR 330 Cr. as provisions during the quarter, down by 21.9% YoY/ 6.35% QoQ....
default
Karur Vysya Bank Ltd. is trading above it's 100 day SMA of 59.9
Karur Vysya Bank Ltd.    
23 May 2019
62.05
-0.72%
Chola Wealth Direct
Sector: Banking /Small-Cap | Earnings Update 4QFY19 Background: Karur Vysya Bank (KVB) is one of the mid-sized banks in the private sector space, operates through a network of 788 branches and ~ 2,337 ATMs and cash recyclers. KVB's business - 82% is concentrated in South India with about 68% of its branch footprint in Tamil Nadu and Andhra Pradesh. As of 4QFY19 the total business stood at INR 1104.8bn. The bank is capitalized with a total CAR of 16% (Basel III). Gross NPAs were reported at 8.79% with...
Promoters pledge reduced to 20.03% of holdings in Sep 2019 qtr.
Karur Vysya Bank Ltd.    
21 May 2019
62.05
-0.72%
Nirmal Bang
Advances stood at Rs. 50,616 Cr vs Rs. 45,973 Cr in Q4FY18, a growth of 10% YoY. Retail loans exhibited a robust growth of 48% YoY contributing 22% to the overall advances (Core Retail growth stood at 24% while the remaining growth was contributed by IBPC portfolio taken on books for 90 days). The bank chose to grow cautiously in Agri (+3% YoY), SME (+6% YoY) and Corporate (-2% YoY) with each contributing 16%, 34% and 28% respectively. We expect loan growth of 15% CAGR over FY19-21E. NIMs were higher 22 bps QoQ at 3.88% on the back of increase in yields....
Karur Vysya Bank Ltd. is trading below it's 150 day SMA of 65.3
Karur Vysya Bank Ltd.    
17 May 2019
62.05
-0.72%
HDFC Securities
The hope of meaningful strategic initiatives (by the new CEO) underpinned our originally constructive stance. We expected slippages to reduce and recoveries to pick up. However, this has not yet fructified. On the contrary, the guidance for higher slippages surprised us in 3QFY19 (refer to our note - Bolt from the blue). In spite of contradictory SMA I & II levels, we believe elevated slippages will persist for some more time. A faster than anticipated cleanup and sweeping managerial changes may provide upsides to our currently NEUTRAL stance. KVBs pull back (mostly via reduced credit costs) is postponed; provisions will remain high in FY20E. Maintain NEUTRAL. Our TP is Rs 84 (1.4x FY21E ABV of Rs 60).
Karur Vysya Bank Ltd. is trading at high day volume of 2.7M.
Karur Vysya Bank Ltd.    
17 May 2019
62.05
-0.72%
buy
KRChoksey
Advances grew during Q4FY19 at 8.4% YoY/1.71% QoQ. Deposit mobilization was slow with a growth of 5.2% YoY/2.1% QoQ. NII at INR 619 Cr. is down 3.7% YoY/ up 6.6% QoQ. NIMs stood at 3.89%, a decline of 24 bps YoY/ up 32 bps QoQ. Total Income at INR 892 Cr. is up 4.7% YoY/6.1% QoQ. PPOP at INR 465 Cr is down 3.1% YoY/ up 9.4% QoQ on back of declining NIMs. The bank has provided for INR 352 Cr of net provisions during the quarter, down 10.6% YoY/ down 12% QoQ translating in credit costs of 4.18%, an increase of 174 bps YoY / 1 bps QoQ. Asset quality improved with GNPAs at 8.79%, increasing by 223 bps YoY / 30 bps QoQ while NNPAs at 4.98% was 82 bps higher on annual basis and 1 bps better sequentially. PCR stood at 56.9%. PAT at INR 60 Cr is up by 18% YoY/ 183% QoQ, translating into ROA of 0.35% on account of lowering of provisions....
Karur Vysya Bank Ltd. is trading at high day volume of 2.7M.
Karur Vysya Bank Ltd.    
15 Mar 2019
62.05
-0.72%
Nirmal Bang Institutional
We recently met Mr P.R. Seshadri, MD & CEO, Mr. J Natarajan, President and COO and Mr. Shivrama Prasad, CFO, Karur Vysya Bank (KVB) and gleaned incremental insight into the asset quality and other aspects of the bank. We do not have KVB under coverage and therefore, do not have a rating on the stock. We share the management meet takeaways below. N.B. We like Karnataka Bank (KTK) and South Indian Bank (SIB) as regional bank turnaround plays as they have significant valuation comfort. (See KTK 3QFY19 Results Note: Transient Factors At Play. See SIB 3QFY19 Results Note: Barring IL&FS;, Corporate Book Remains Under Control.) Our top mid/smallcap picks are City...
Karur Vysya Bank Ltd. is trading above it's 100 day SMA of 59.9