Karur Vysya Bank Share: The brokerage firm has expressed fear of a fall in the shares of Karur Vysya Bank (KVB). Geojit Financial Services has given Reduce rating to this stock in its research report dated 06 January 2025. Amidst this news, a decline of 2.31 percent was seen in the company’s shares today and the stock closed at a price of Rs 217.75 on BSE. With this decline the market cap of the company has decreased to Rs 17,423 crore. The stock’s 52-week high is Rs 246.15 and 52-week low is Rs 159.45.
Target price of Karur Vysya Bank
The brokerage firm has set the target price for Karur Vysya Bank shares at Rs 201. According to today’s closing price, there is a possibility of a decline of about 8 percent in the company’s shares. The bank’s net loans and advances witnessed a CAGR growth of 12.4% in the financial year 2021-24. We estimate the loan growth rate to peak and expect it to be at 11.5% CAGR in FY 2025-2027E. KVB has recorded deposit growth of 10.8% CAGR for FY 2021-24.
Brokerage Opinion on Karur Vysya Bank
However, the CASA ratio has steadily declined from 35 per cent in FY22 to 30 per cent in FY24. “We expect CASA ratio to stabilize at 30% for FY25-27E and deposit growth to accelerate to 11.6% CAGR for FY25-27E. GNPA/NNPA to decline to 1.1% from 7.9%/3.4% in FY21,” the brokerage said. %/0.3%.”
“The growth in Portfolio at Risk (PAR) to 31-180 and PAR to 181-360 in the MSME segment shows that the NPA ratio has reached its lowest level, leading to expectations of more defaults,” the brokerage said.
“We believe the bank’s loan growth rate and return metrics are at peak,” the brokerage said. The stock currently trades at a 1-year forward P/Bk of 1.3x, compared to its long-term average of 1x. Close to its all-time high, we do not expect further improvement in the stock, hence, we value the stock with a target price of Rs 201. Initiate coverage with REDUCE rating at 1.1x BVPS FY27E.”
Karur Vysya Bank is headquartered in Tamil Nadu and has 841 branches across India. Its total business value is ₹176,138 crore. KVB is in the business of retail and corporate banking as well as treasury operations.
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