Today the Sensex closed at a record high and the Nifty-50 reached a 52-week high. The Nifty50 are 18,300 and 18,600 as its immediate support and resistance levels, respectively. Bank Nifty has immediate support of around 42,500 and resistance at 43,500. Among banking stocks, 3 banking stocks have given the highest return in 1 year. These 3 banks are Karnataka Bank, Karur Vysya Bank, & Bank of Baroda. All 3 banks have performed well over the past 3 years as well as in short-term periods. All 3 recorded their fresh 52-week high in November and are currently trading near their 52-week high levels. Here are the details of the banks:
Karnataka Bank Limited is a leading 'A' Class Scheduled Commercial Bank in India. It is a small-cap private sector bank having a market cap of Rs 4,442.69 crore.
On 23 November 2022, the Karnataka Bank stock recorded its new 52 week high level at Rs 149.90 per share. The stock on NSE last traded at Rs 143.10 per share, 0.76% down from its previous close. It recorded its 52 week low at Rs 55.80 on 31 March 2022.
The stock has given the highest 106.49% positive returns in 1 year among peer stocks. It has given a multibagger return of 114.31% in the past 3 years. However, in 5 years, it has fallen by 1.37%. The stock also delivered positive returns in the short term. In 1 month it gave a massive 55.46% and in 3 months massive 95.76% returns, respectively.
Leading brokerage firm Axis Securities has suggested buy Karnataka Bank stock in its recent report. The brokerage in the report has said, "Concerns about the highly restructured book, and increase in the cost of funds persist. Furthermore, maintaining NIMs at an increasing interest rate scenario will pose a challenge. However, the management's focus to increase the CASA ratio, as well as retail TD in the borrowing mix, will aid the bank in lowering its cost of funds. The management commentary on the expectation of robust loan growth with a strong credit pipeline, sustaining NIM at 3.5%, continuous improvement in the asset quality, and stable CAR has been encouraging. With improving asset quality and the management's guidance for further improvement in G/NNPA, NIMs, slippages, and an overall 15% growth in loan book, we believe KBL commands re-rating and better valuation. However, we would monitor the company's performance closely to see if it achieves guided performance in a sustainable manner. Thus, considering the above factors, we change our rating on the stock from HOLD to BUY with a revised target price of Rs 156/share (~0.6x FY24E ABV), implying an upside of 40% from the CMP."
Karur Vysya Bank
Karur Vysya Bank is a small-cap private sector commercial bank having a market cap of Rs 8,200.60 crore. The bank is engaged in providing a wide range of banking and financial services including commercial banking and treasury operations.
The stock recently recorded its fresh 52 week high on 1 November 2022 at Rs 106. The stock on NSE last traded at Rs 102.75 per share, 0.69% up from its previous close. It is trading near 52 week high. It recorded its 52 week low at Rs 41.75 recorded on 16 May 2022.
The stock has given positive returns in the past 3 years, whereas, in the past 5 years, the stock has fallen 6.28%. In 1 year, it gave 95.34% positive returns. In 3 years, it gave 74.89% positive returns, respectively. It also gave positive returns in a short duration. In 1 month it gave 12.42% and in 3 months it gave massive 61.05% positive returns, respectively
Bank Of Baroda
Bank of Baroda is a leading Indian public sector bank. It is the second largest public sector bank in India after the State Bank of India, with 132 million customers, a total business of US$218 billion, and a global presence of 100 overseas offices. It is a mid-cap commercial bank with a market capitalisation of Rs 88,301.01 crore.
The stock touched its new 52 week high today, 24 November 2022 at Rs 171.90, and ended at Rs 170.40 per share, 0.92% up from its previous close. It recorded its 52 week low at Rs 77.05 on 27 December 2022.
It has given a maximum 82.54% positive returns on investments in the past 1 year. In 3 years it gave 71.95% positive returns. However, in the past 5 years, it gave 3.65% negative returns. The stock on short term also performed well, given 17.96% in 1 month and 37.92% in 3 months, respectively.
LKP Research suggests buy Bank Of Baroda stock in its recent rpeort. It said, "In 2QFY23, Bank of Baroda (BOB) has delivered an expected result on operating and assets quality front. The fresh slippages were slightly higher at ₹34.8bn v/s ₹32.6bn in 1QFY23. Furthermore, the reduction (up-gradation & recovery) stood ₹107bn v/s ₹58bn in the previous quarter. It reported GNPA (5.31% v/s 6.26% in 1QFY23) and NNPA (1.01% v/s 1.58% in 1QFY23) declined substantially along with higher PCR (incl. TWO) of 92%. The bank has witnessed robust growth in net advances (20.6% YoY, 4.6% QoQ) and deposit growth (13.6% YoY, 5.6% QoQ) with better liquidity position (LCR of 120% +). Moreover the bank has reported net profit of ₹33.1bn on the back of lower provision (₹16.3bn v/s ₹16.8bn in the previous quarter). SMA1/2 pool reduced sequentially to ~42bps. We believe the inexpensive valuation (P/ABVPS: 0.9x) makes BOB lucrative. Thus reiterate BUY with unchanged target price of ₹202."
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