Equity benchmark indices Sensex and Nifty hit their new all-time high levels during early trade on Friday, amid the ongoing bullish rally in domestic stocks, tracking firm trends in Asian markets and fresh foreign fund inflows.

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At 2.07 PM, Sensex was 0.35 per cent up at 82,426.48 and Nifty 50 was 0.37 per cent up at 25,246.80. At closing, the Sensex was at 82,365, up 231 points or 0.28 per cent and Nifty was at 25,235, up 83 points or 0.33 per cent.

Meanwhile, brokerage Antique Broking added Karur Vysya Bank stock in its top picks. 

Stock to buy: Karur Vysya Bank share

Brokerage Antique has given a 'buy' rating on Karur Vysya Bank. The target price per share has been increased from Rs 250 to Rs 270. On August 29, 2024, the share price closed at Rs 223.1. In this way, at the current price, the stock can give up to 21 per cent returns in the future.

Brokerage's views on Karur Vysya Bank stock

The brokerage says Karur Vysya Bank remains our top pick among mid-cap banking stocks. This is because the bank is continuously maintaining a balanced growth approach. There is loan growth of about 15 per cent and NIM (net interest margin) of more than 4 per cent. Asset quality is better. NNPL is below 0.4 per cent. The credit cost in 1QFY25 is 53 bps. At the same time, unsecured retail loans are only 2 per cent of the bank's loan book. It is expected to have 1.5-1.6 per cent RoA (return on assets) and 16-17 per cent RoE (return on equity) during FY25-27E. The brokerage is confident that this trend will continue and the track record of the management is also strong.

Karur Vysya Bank share price movement

Banking shares started flat trading on Friday. The long-term returns of the stock have been strong and it has been a multibagger for investors. The stock has given returns of 228 per cent in the last two years and more than 410 per cent in the last three years. The stock bank share has increased by more than 85 per cent in a year. The stock has given more than 30 per cent returns in 2024.

Shares of Karur Vysya Bank closed trading at Rs 222.2 each, down 0.38 per cent on BSE today, August 30, 2024.

The views/suggestions/advice expressed here in this article are solely by the brokerage firm. Zee Business suggests its readers consult their investment advisers before making any financial decision.