KARURVYSYA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | KARURVYSYA | Market Cap | 28,367 Cr. | Current Price | 294 ₹ | High / Low | 344 ₹ |
| Stock P/E | 12.3 | Book Value | 132 ₹ | Dividend Yield | 0.74 % | ROCE | 7.38 % |
| ROE | 17.6 % | Face Value | 2.00 ₹ | DMA 50 | 289 ₹ | DMA 200 | 260 ₹ |
| Chg in FII Hold | 2.38 % | Chg in DII Hold | -0.94 % | PAT Qtr | 690 Cr. | PAT Prev Qtr | 574 Cr. |
| RSI | 53.0 | MACD | 2.05 | Volume | 24,39,696 | Avg Vol 1Wk | 23,50,237 |
| Low price | 167 ₹ | High price | 344 ₹ | PEG Ratio | 0.29 | Debt to equity | 8.83 |
| 52w Index | 71.7 % | Qtr Profit Var | 39.1 % | EPS | 23.8 ₹ | Industry PE | 15.0 |
Entry Zone: 285 ₹ – 295 ₹ (near 50 DMA support)
Exit Guidance: 320 ₹ – 340 ₹ (resistance zone)
Holding View: Medium-term holding with cautious monitoring due to leverage
Positive
- Attractive P/E of 12.3 compared to industry PE of 15.0 — undervalued
- Strong ROE (17.6%) highlights efficient shareholder returns
- PEG ratio of 0.29 indicates undervaluation relative to growth
- Quarterly PAT growth (574 Cr → 690 Cr) shows robust operational performance
- EPS of 23.8 ₹ supports profitability
- FII holdings increased (+2.38%), signaling foreign investor confidence
Limitation
- ROCE of 7.38% reflects modest capital efficiency
- High debt-to-equity ratio (8.83) raises leverage concerns
- DII holdings decreased (-0.94%), showing reduced domestic institutional support
- Dividend yield of 0.74% is modest for income-focused investors
Company Negative News
- High leverage compared to peers may impact financial flexibility
- Decline in domestic institutional participation
Company Positive News
- Strong quarterly profit growth boosts investor sentiment
- Foreign institutional accumulation supports long-term confidence
- Technical indicators (RSI 53.0, MACD 2.05) show neutral to positive momentum
Industry
- Industry PE at 15.0, slightly higher than KARURVYSYA’s 12.3 — stock trades at discount
- Sector momentum strong with 52-week index return of 71.7%
Conclusion
Karur Vysya Bank demonstrates attractive valuation with strong ROE, EPS, and profit growth, supported by foreign institutional buying. However, high leverage and modest ROCE limit upside potential. Entry near 285–295 ₹ offers a favorable setup, with exits around 320–340 ₹ advisable. Long-term holding is viable if earnings growth sustains and leverage improves, though cautious monitoring of debt levels and institutional flows remains essential.
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