169.47% In 1 Year! ICICI Direct Assigns Buy On Small Cap Banking Stock, Shares Rallies 6.28%

ICICI Direct assigns Buy on South Indian Bank (SOUBAN) with a target price of Rs 23 apiece. Considering the given target price, if the stock is purchased at the current market price, it can fetch up to 13% gains in 12 Months. The shares today rallied 6.28% with Rs 20.68 intraday high and 19.50 intraday low on BSE.

South India Bank is a small-cap Bank having a market cap of Rs 4285.93 Crore.

Rating and Target Price

According to ICICI Direct, With business transformation imbibed in the business process, transition in leadership is expected to remain smooth with continued traction in growth and profitability. "We assign BUY rating to SOUBAN amid anticipation of continued gradual improvement in RoA & healthy business growth. We also derive comfort from its inexpensive valuations (~0.5x FY25E ABV, 4x FY25E EPS). We value SOUBAN at Rs 23 i.e. 0.7x FY25E ABV factoring expected RoA at 0.7-0.8% in FY24-25E," the brokerage has said.

Stock Overview

On Monday, the shares of South Indian Bank jumped 6.28%, ended at Rs 20.48 apiece. The stock's 52-week high is Rs 21.80 apiece and 52-week low is Rs 7.56 apiece, respectively.

The stock jumped 14.35% in the past 1 week, and 33.68% in the past 3 months. It gave 169.47% multibagger return in the past 1 year, while in the past 3 years, it gave 151.91% positive return. However, it declined 5.19% in the past 5 years.

About - South Indian Bank

South Indian Bank (SOUBAN) is old private-sector bank based out of Kerala. The bank has undergone business transformation which has led to gradual improvement in business performance over past years. Distribution network with 940 branches & 1289 ATMs with strong presence in south India. Loan book at Rs 72092 crore with ~40% book from Kerala. Diversified asset mix with corporate/ retail/ business/ agriculture segments contributing ~33%/ 22%/ 25%/ 20% in loan book.

Disclaimer

The stock has been picked from the brokerage report of ICICI Direct. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.