ThinkStock PhotosICICI Direct has buy call on CSB Bank with a target price of Rs 330. The current market price of is Rs 288.7.
CSB Bank Ltd., incorporated in the year 1920, is a banking company (having a market cap of Rs 4988.58 Crore).
Financials
For the quarter ended 31-03-2021, the company reported a Standalone Total Income of Rs 609.45 Crore, up 1.70 % from last quarter Total Income of Rs 599.24 Crore and up 28.17 % from last year same quarter Total Income of Rs 475.50 Crore. The bank reported net profit after tax of Rs 42.89 Crore in latest quarter.
Investment Rationale
Backed by strong promoter (FairFax), renewed business strategy and adequate capital base, the bank is well placed to deliver sustainable 20%+ growth. Improving CD ratio coupled with healthy liability franchise would aid margins, growth in fee income and steady asset quality (owing to gold loan and selective SME lending) offer multiple levers for improvement in return ratios. The brokerage expects PAT to grow at 44% CAGR in FY21-23E to Rs 451 crore; leading to RoE/ RoA of 16.6%/ 1.4% by FY23E
(Views and recommendations given in this section are the analysts' own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.)
CSB Bank Ltd., incorporated in the year 1920, is a banking company (having a market cap of Rs 4988.58 Crore).
Financials
For the quarter ended 31-03-2021, the company reported a Standalone Total Income of Rs 609.45 Crore, up 1.70 % from last quarter Total Income of Rs 599.24 Crore and up 28.17 % from last year same quarter Total Income of Rs 475.50 Crore. The bank reported net profit after tax of Rs 42.89 Crore in latest quarter.
Investment Rationale
Backed by strong promoter (FairFax), renewed business strategy and adequate capital base, the bank is well placed to deliver sustainable 20%+ growth. Improving CD ratio coupled with healthy liability franchise would aid margins, growth in fee income and steady asset quality (owing to gold loan and selective SME lending) offer multiple levers for improvement in return ratios. The brokerage expects PAT to grow at 44% CAGR in FY21-23E to Rs 451 crore; leading to RoE/ RoA of 16.6%/ 1.4% by FY23E
(Views and recommendations given in this section are the analysts' own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.)
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