Only buyers in Karnataka Bank after strong Q2 performance; can deliver 16% return in short term
On Tuesday, the private lender reported a net profit of Rs 412 crore, which was up 227% Yo-Y over Q2 of FY22 at Rs 125.61 crore. The revenues were up at Rs 2031.09 crore for the reporting quarter versus Rs 1829.16 crore in the corresponding quarter in the year-ago period
Karnataka Bank stocks locked in upper circuit of 20 per cent on Wednesday on the back of more than two-fold rise in the net profit in July-September quarter. The stock opened at Rs 107 apiece on NSE and hit the upper circuit of 20 per cent at Rs 112.65, also its 52-week high -- up by Rs 18.75 from previous close of Rs 93.90.
According to technical analyst Nilesh Jain at Centrum Broking, the counter can touch Rs 130-135 apiece, yielding 16 per cent return from current levels, in short term.
On Tuesday, the private lender reported a net profit of Rs 412 crore, which was up 227 per cent Year-on-Year over Q2 of FY22 at Rs 125.61 crore. The revenues were up at Rs 2031.09 crore for the reporting quarter versus Rs 1829.16 crore in the corresponding quarter in the year-ago period. The net interest margins (NIM) went up to 3.78 per cent from 3.31 per cent.
The lender also improved on its Gross NPAs to 3.36 per cent from 4.52 per cent in the year-ago period. The Net NPAs fell to 1.72 per cent from 2.85 per cent.
The Centrum Broking analyst recommended ‘Hold’ on Karnataka Bank with a strict no if investors want to make a fresh move. The positional target, according to the brokerage firm, would be Rs 140.
"Any fresh move in this stock must be made at levels around Rs 100," Jain who is Assistant Vice President - Lead Derivative and Technical Research at the Centrum Broking said.
He said that the chart structure reflects a bullish pattern, adding that investors should keep a trailing stop loss of Rs 106.
Source: NSE
Earlier today, ahead of the market opening, the stock was recommended in Traders Diary, a Zee Business daily show. The buying was recommended at levels around Rs 99.
(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Power of Compounding: How many years will it take to reach Rs 3 crore corpus if your monthly SIP is Rs 4,000, Rs 5,000, or Rs 6,000
IRCTC Dividend 2024: Railway PSU announces 200% interim dividend - Check record date and other details
Power of Compounding: Salary Rs 25,000 per month; is it possible to create over Rs 2.60 crore corpus; understand it through calculations
Reduce Home Loan EMI vs Reduce Tenure: Rs 75 lakh, 25-year loan; which option can save Rs 25 lakh and 64 months and how? Know here
New Year Pick by Anil Singhvi: This smallcap stock can offer up to 75% return in long term - Check targets
PSU Oil Stocks: Here's what brokerage suggests on these 2 largecap, 1 midcap scrips - Buy, Sell or Hold?
Power of Compounding: How many years it will take to reach Rs 2 crore corpus if your monthly SIP is Rs 3,000, Rs 4,000, or Rs 5,000
02:29 PM IST