One banking Sector Stock You Should Buy Right Now !

One banking Sector Stock You Should Buy Right Now !

Karur Vysya Bank Research Report 

Stock Name : Karur Vysya Bank Ltd.

CMP : 118

Recommendation: 

Strong Buy With Short, Medium Term Upmove, Also positive for more than 1 year holding

Fundamental View: 

However, relatively small but this bank has almost a Century long history. The bank has grown its topline about 50% in last 5 years to more than 5000 crores which not many banks of its size has been able to do and remained stuck where they are.

Even more important is the staggering net profit the bank is showing from year on year. Its stock is trading at around 118 which is about PE of 12 only which should be at least double looking at many perspective including the peer valuation trend in the market right now.

At times when the banking sector is fraught with NPAs and most banks are not making any money, stocks of banks like DCB, City Union, Indian Bank and a couple of other out of a long list of banking names are enjoying good buying and valuations. Looking at that KVB is ideal candidate for up to 100% rise to reach 20 plus Price Earnings ratios which it should command in terms of not just prevailing peer comparison basis but also on many other counts.

Technical View: 

After all round banking stocks rally in 2009, 2010 most banking stocks fell in November 2010 and struggling since then to rise up. But this one didn’t fell as much from its 100 plus levels and risen up swiftly from its previous break out level of 60 and went up back to 115 levels again.

It made new high in 2012 breaking 2010 high then again made new high in 2015 end. And now it clearly looking like making a new high again very shortly and swiftly as it is already at its previous which is lifetime high.

The stock will shop up to 200 once closes above 120 with volume which seems to be very clear looking at the given fundamental and technical views.

The stock may face small hick up around the present levels and can retract to 110 or 100 at maximum on account of profit booking or resistance facing at old highs but will bounce back more strongly.

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