South Indian Bank Upgraded to 'Hold' Rating, Shows Strong Long-Term Growth and Attractive Valuations

South Indian Bank, a midcap private bank, has recently been upgraded to a 'Hold' rating by MarketsMOJO. This decision is based on the company's healthy long-term growth, with a net profit growth rate of 31.17% annually. The bank has also declared positive results for the last 11 consecutive quarters, with its operating cash flow at a high of Rs 7,075.21 crore and credit deposit ratio at 77.93%. Additionally, the bank has a very attractive valuation with a price to book value of 0.7 and is currently trading at a discount compared to its historical valuations.
However, the stock is currently in a mildly bearish range and its technical factors, such as MACD and KST, are also bearish. Institutional investors have also decreased their stake in the company by -1.82% over the previous quarter, holding only 16.73% collectively. This could be due to the fact that institutional investors have better resources and capabilities to analyze the fundamentals of companies compared to retail investors.

In the last year, South Indian Bank has underperformed the market, generating a return of only 7.92% compared to the market's return of 26.22%. While the stock has shown some growth, its profits have risen by 32.6%, resulting in a PEG ratio of 0.3. Overall, with its recent upgrade to a 'Hold' rating and positive long-term growth, South Indian Bank could be a good investment option for those looking for a midcap private bank with attractive valuations.