Rakesh Jhunjhunwala stock: Karur Vysya Bank jumps over 6% post q4 results; upside seen at 55%

Rakesh Jhunjhunwala portfolio stock Karur Vysya Bank gained over six per cent in Monday's intraday trade after the company came up with its result on Friday. The surge in share price of South-based bank came after the company reported over two-fold jump in its net profit in the March 2022 quarter on the back of a fall in bad loans. 

Also, popularly known as Big Bull of the Indian market, Jhunjhunwala holds 4.5% stake in the private bank for the quarter ending March 31, 2022. The total stake held by the billionaire investor aggregates 35,983,516 shares of the private lender in the same quarter. The ace investor has maintained status quo in Karur Vysya Bank for the past 8 quarters since June 2020.  

As per the latest corporate shareholdings filed on the exchanges, Rakesh Jhunjhunwala and Associates publicly holds 34 stocks. The value of these stocks has been pegged at over Rs 29,626.9 crore as on May 23 by trendlyne.com, a platform for stock market analysis.  

Meanwhile, around 12 pm, shares of Karur Vysya Bank were trading with over 4% gain to Rs 46.40 per share around 12pm on the BSE on Monday.  

The stock has gained nearly 13% in the past one week and has given a negative return of around 19% in the past one year as on May 23, according to technical data of the stock. However, the shares jumped over 100% in the past two years as on May 23.  

What does brokerage say? 

On the back of steady decline in credit cost, ICICI Securities remains bullish on this Rakesh Jhunjhunwala stock. The brokerage firm maintained a buy rating on Karur Vysya Bank with target price of Rs 70, which translates into an upside of 55% on Friday closing price of Rs 45 per share on the BSE. 

"Karur Vysya Bank’s (KVB) Q4FY22 earnings at more than Rs2bn are highest in 18 quarters in a row, GNPL pool declined sequentially for the third quarter, while RoA sustained at ~1%. This reinforces our view that the bank is progressing well toward its RoA target of >1% by FY23," it said.  

Karur Vysya Bank Q4FY22 Result 

Karur Vysya Bank on Friday reported an over two-fold jump in its net profit to Rs 213.47 crore in the March 2022 quarter against a net profit of Rs 104.37 crore in the same quarter of the previous fiscal, the bank said in a regulatory filing on Friday.  

Meanwhile, total income during Q4 FY22 rose 6.3 per cent to Rs 1,614.75 crore from Rs 1,518.39 crore in Q4 FY21, it said. 

The bank's interest income grew 4.4 per cent to Rs 1,409.27 crore during the quarter. For the full 2021-22, its net profit jumped 87.3 per cent to Rs 673.27 crore against Rs 359.39 crore in 2020-21.  

Karur Vysya Bank dividend 

The board of directors of the bank have recommended a dividend of 80 per cent or Rs 1.60 per equity share for the year 2021-22, subject to the approval of shareholders at the ensuing annual general meeting, read a regulatory filing.