Karur Vysya Bank
Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Stock Synopsis
Forum Discription: A bried discussion of companies on very specific matters. Normally this is the prelude for further research as always members would be discussing quality companies with good management only
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=2523
Printed Date: 21/Apr/2025 at 11:25pm
Topic: Karur Vysya Bank
Posted By: deveshkayal
Subject: Karur Vysya Bank
Date Posted: 18/Nov/2009 at 11:39am
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Karur (CMP: 383) looks interesting to me based on financial parameters and Valuations.
Financial performance: Q2 NIM: 3.06% Q2FY10 PAT up 46.07% H1FY10 PAT up 73.82% H1 EPS: 30 Book Value FY09: 250 FY10 E : 299 ROE: 17.5% (FY09), 21.74% (FY10 E) ROA: 1.82% Interest on Advances grew 23.11% Other Income grew 66% Total Deposits grew 24.41% Total Advances grew 23.22% CASA: 21.89% as on 31st March'09 Gross NPA: 1.75% Net NPA: 0.22% Provision Coverage: 87.29% CAR: 16.01% (Basel II) Branches: 350 targetted by FY10 end From the Chairman's AGM speech: "Plans for 2009-10: Your bank has embarked on an ambitious plan to reach total business figure of Rs. 50000 cr. by March 2012. The targets for 2009-10 have been set with that goal in sight and your bank has set for itself a target level of Rs. 32200 cr. Focus will be on improving CASA and advances segments and emphasis will be on customer acquisition, particularly young customers." Disclosure: I have vested interest in the stock. ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Replies:
Posted By: FutureBull
Date Posted: 19/Nov/2009 at 12:17pm
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it has been good dividend payer.. RJ has made tons of money in this stock.. ------------- ‘The market always does what it’s supposed to — BUT NEVER WHEN’. |
Posted By: Bhupan
Date Posted: 19/Nov/2009 at 2:18pm
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Hi Devesh . an off topic question perhaps .. i was looking at Ing Vyasa and Yes Bank . any pointers towards comparison and ING and Karur are both trading around similar levels . if you could throw some light that would be nice |
Posted By: Crimsonarcher
Date Posted: 19/Nov/2009 at 2:38pm
| It was available at 300 or so about 3 months back. So its already given 30% odd...its a steady compounder at 15-20% YOY. You can park your money here and get regular returns, even perhaps 10 times in 10 years but can you buy and forget for the next 10 years?? |
Posted By: deveshkayal
Date Posted: 20/Nov/2009 at 1:27pm
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No idea about ING except that Chryscapital has investments in the company.
I just checked that last Karur diluted equity was in Jan'07 and that too through rights issue. Board has deferred raising money through QIP and hence no shareholder approval was taken during the AGM. CAR stands at more than required level of 16% as on 30th Sept. So I guess dilution should not happen before March'10 which means ROE of 21%+ should be comfortably achieved this year. ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: tigershark
Date Posted: 20/Nov/2009 at 1:51pm
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in a rising int rate regime will casa of 21% be enough?
------------- understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things |
Posted By: deveshkayal
Date Posted: 23/Nov/2009 at 9:25am
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40% CASA stocks are priced to perfection @ 3x BV. Even if CASA improves by 3% over next 2 years, it will boost margins by atleast 20bps. Valuations will look cheap on P/BV when equity is diluted next year. From FY11 perspective, this one is trading at around 0.9x BV. ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: nikhil090
Date Posted: 23/Nov/2009 at 10:18am
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IT is a good conservative private bank which is free from most of the troubles of PSU's banks (govt intervention etc) and still available cheap with reasonable dividend yield.
Especially for Banks, I believe big is not beautiful. It is the efficient and conservative which is beautiful and KVB scores on all those parameters..If they can increase their fee based income then it can be big spinner otherwise it is sedate performer which is cheap but efficient.
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Posted By: Hitesh Shah
Date Posted: 23/Nov/2009 at 10:34am
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It got several decent mentions http://economictimes.indiatimes.com/articleshowpics/5258884.cms - here . Please IGNORE!!!! The online version and the print version are different  ------------- |
Posted By: Hitesh Shah
Date Posted: 23/Nov/2009 at 11:37am
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http://lite.epaper.timesofindia.com/mobile.aspx?article=yes&pageid=22§id=edid=&edlabel=ETM&mydateHid=23-11-2009&pubname=Economic%20Times%20-%20Mumbai&edname=&articleid=Ar02202&publabel=ET - This is the proper link (I hope) excerpts: The study was a kind of eye opener in the sense that it showed that smaller banks like Karur Vyasa Bank and City Union Bank are more efficient than their larger peers. Karur Vyasa Bank boasts of third highest RoA (return on assets) in the industry. That coupled with above average net interest margin (NIM) helped it sneaking in the list of top 10 most efficient banks. ... Karur Vyasa Bank features here as well and with this, it has managed to do extremely well on three of the four parameters. The only reason that its overall rank was dragged down was due to its smaller size. ... ON this parameter too, Federal Bank ranks the best followed by Yes Bank and Indian Bank. Federal Bank has the highest CAR (capital adequacy ratio) along with one of the lowest non-performing assets (NPAs). Karur Vyasa Bank comes as a strong bank even on this count. ------------- |
Posted By: Hitesh Shah
Date Posted: 23/Nov/2009 at 11:38am
In edit: No difference! I read the wrong article  ------------- |
Posted By: Mohan
Date Posted: 24/Nov/2009 at 2:56am
What do you think of its future ? ------------- Be fearful when others are greedy and be greedy when others are fearful. |
Posted By: Mohan
Date Posted: 24/Nov/2009 at 3:00am
Deveshji, Please translate it into Hinglish for us poor souls. :) ------------- Be fearful when others are greedy and be greedy when others are fearful. |
Posted By: basant
Date Posted: 24/Nov/2009 at 7:40am
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Good stable compounder. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: smartcat
Date Posted: 24/Nov/2009 at 11:29am
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CASA means Money ("small change" actually) in Kannada.
BV means Wife in Hindi
bps means Bipasha (bips)
Pee by BV -> don't know why Devesh mentioned this.
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Posted By: basant
Date Posted: 24/Nov/2009 at 11:33am
One of the best explanations on TED.  ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: Mohan
Date Posted: 25/Nov/2009 at 12:28pm
How does it compare to HDFC Bank ? Maybe this and couple of earlier posts be shifter to KYB thread. ------------- Be fearful when others are greedy and be greedy when others are fearful. |
Posted By: deveshkayal
Date Posted: 29/Jan/2010 at 1:29pm
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Good Q3 numbers:
Q3 EPS: Rs 14 (growth of 28% YoY), 9MFY10 EPS: Rs 44 NIM: 3.38% NII grew 29.32% YoY ROA: 1.54% CAR: 15.66% Net NPA: 0.19% KVB’s total business stood at Rs 30,532.92 crore as of December 2009, up by 28% on a year-on-year basis. While the total deposits of the bank was up 30.28% at Rs 17891.66 crore (Rs.13733.08 crore), the total advances was up 26.53% at Rs 12,641.26 crore (Rs 9,990.89 crore) If KVB raises 250crs @ 400/share, it would add Rs 44/share to the book value. I think KVB should raise capital in Q1FY11. ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: stock_surgeon
Date Posted: 14/Sep/2011 at 12:41pm
| Looks good now at 360 |
Posted By: manish_okhade
Date Posted: 14/Sep/2011 at 2:33pm
Why? |
Posted By: stock_surgeon
Date Posted: 14/Sep/2011 at 2:53pm
| Good dividend yield, low PE, Low PB. And fall is due to market sentiments |
Posted By: shontou
Date Posted: 01/Nov/2011 at 11:51am
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Karur Vysya Bank net profit rises 10.44% in the September 2011 quarter
Operating income rises 48.94% to Rs 772.05 crore Net profit of Karur Vysya Bank rose 10.44% to Rs 113.31 crore in the quarter ended September 2011 as against Rs 102.60 crore during the previous quarter ended September 2010. Total operating income rose 48.94% to Rs 772.05 crore in the quarter ended September 2011 as against Rs 518.38 crore during the previous quarter ended September 2010. Particulars Quarter Ended Sep. 2011 Sep. 2010 % Var. Sales 772.05 518.38 49 OPM % 80.99 75.68 7 PBDT 144.38 126.25 14 PBT 144.38 126.25 14 NP 113.31 102.60 10 ------------- Every day, self-proclaimed stock market "experts" tell us why the market just went up or down, as if they really knew. So where were they yesterday? |
Posted By: stock_surgeon
Date Posted: 03/Nov/2011 at 11:49pm
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So it is back to 395 now, had bought it around 355- when I mentioned it in my post. Will hold it for 1 yr. Expecting 50% return from my buy price in next 1 yr
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