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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commentary; you can contact us for complete research, analysis and view on the
stock.
Views
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in various types of macro related factors, company specific factors and such
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