3 Bank Stocks Emkay Recommends For An Upside Of Upto 42%
Emkay Global Financial recommends a "buy" call on Axis Bank, Canara Bank and Karur Vyasa Bank.
As one of the leading broking firms, it has seen a potential upside of upto 42% from these banks based on their recent results.
All the three banks posted their quarterly numbers and they have been good.
According to Emkay Global, Axis Bank is poised to grow upward.
"We revise our earnings estimates upward for FY23/FY24/FY25 by 7%/4%/2%.
As per the quarterly numbers its Net interest margin (NIM) has jumped by 30 basis points(bps) to 4.3%, simialr to its peers.
This was largely attributed to mix of better portfolio, asset re-pricing, interest recognition on earlier restructured loan and drop in average LCR.
Canara Bank: Emkay Global Financial recommends a "buy" call with a target
price of Rs 385
"We raise our earnings by 18 - 28% over FY23 - 25E, factoring-in better margins, higher recovery from written-off accounts and lower tax rate.
We now expect RoA/RoE to improve to 0.9%/ "We17% by FY25E (without considering capital raise).
retain BUY," on the stock, with a revised Target price of Rs 385/share Emkay Global Financial stated in its report.
Karur Vyasa Bank: Emkay Global Financial recommends a "buy" call with a
target price of Rs 155
Karur Vyasa Bank on the of end our top picks in the small banking space, given the expected improvement in its RoA/RoE to a decadal high of 1.4%/16%, healthy capital ratios and emerging Management credibility."
The stocks have been picked from the brokerage report of Emkay Global Financial Services.
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By Aditi Murkute Goodreturns