Disc: resorted to mild trimming in Axis Bank and CG Consumer. Initiated tracking positions in Acrysil, Karur Vysya Bank and IDFC First bank.
Reasons -
Acrysil - Company’s MD is guiding for FY 23 sales > 700 cr with 20-22 pc EBITDA. Company should end up making a PAT of around 85-90 cr for FY 23. The current market cap is around 1900 cr. On a one yr fwd basis, its trading at 21-22 times EPS.
KVB - Has been a big underperformed over last decade. However, their incremental slippages for the last three Qtrs have been less than 1 pc ( on an annualised basis ). Plus the total SMA book is also less than 1 pc of the total outstanding loans. Their GNPAs and NNPAs are showing a rapidly improving trend. Management is also guiding for a 15 pc loan book and NII growth. The bank is trading at 6 times expected earnings of FY23.
Idfc First bank - Their superlative NIMs , CASA > 50 pc and credit cost guidance of 1-1.5 times got me interested in the bank. If these things sustain for another 2-3 Qtrs, the mkt may finally re-rate this stock.
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