Strong Price Momentum and Market Outperformance
The stock has demonstrated remarkable momentum, gaining 0.42% on the day compared to the Sensex’s decline of 0.15%. Over the past week, Karur Vysya Bank Ltd. surged 7.42%, outperforming the Sensex’s 1.10% rise. The one-month return stands at 10.19%, while the three-month performance is an impressive 30.60%, significantly ahead of the Sensex’s 5.45% gain in the same period.
Year-to-date, the stock has appreciated 3.79%, outpacing the Sensex’s 0.48% increase. Over longer horizons, the bank’s stock has delivered exceptional returns: 47.92% in the last year versus 8.09% for the Sensex, 196.44% over three years compared to 41.88%, and a staggering 582.48% over five years against the Sensex’s 76.79%. Even over a decade, the stock has outperformed, rising 299.15% compared to the Sensex’s 234.75%.
Karur Vysya Bank’s price strength is further underscored by its trading above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling sustained upward momentum. The stock has also recorded five consecutive days of gains, delivering an 8.07% return during this period.
Intraday volatility was notably high at 95.2%, reflecting active trading and investor engagement on the day the new high was recorded.
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Financial Strength and Quality Metrics
Karur Vysya Bank Ltd. maintains a strong financial profile, supported by prudent lending practices and solid capital buffers. The bank’s Gross Non-Performing Assets (NPA) ratio remains low at 0.76%, indicating effective credit risk management. Its Capital Adequacy Ratio (CAR) stands at a healthy 15.95%, well above regulatory minimums, providing ample cushion against risk-weighted assets.
Profitability has shown robust growth, with net profit expanding at an annualised rate of 45.83%. The bank has consistently reported positive results for 17 consecutive quarters, underscoring operational stability and earnings resilience.
Operating cash flow for the year reached a peak of Rs.4,487.08 crores, while interest earned in the latest quarter hit a record Rs.2,807.97 crores. Dividend per share (DPS) also touched a high of Rs.2.60, reflecting the company’s commitment to shareholder returns.
Institutional investors hold a significant 55.79% stake in the bank, with their share increasing by 0.9% over the previous quarter. This elevated institutional holding suggests confidence from investors with extensive analytical resources and a focus on fundamentals.
Karur Vysya Bank is ranked among the top 1% of all 4,000 stocks rated by MarketsMojo, with a Mojo Score of 72.0 and a current Mojo Grade of Buy, upgraded from Hold on 9 Dec 2025. The Market Cap Grade is 3, reflecting its mid-cap status within the private sector banking space.
Valuation and Performance Considerations
The bank’s return on assets (ROA) stands at 1.6%, a respectable figure within the private banking sector. However, the stock trades at a premium valuation with a price-to-book (P/B) ratio of 2.1, higher than the average historical valuations of its peers. This premium reflects the market’s recognition of the bank’s quality and growth trajectory.
Over the past year, while the stock price has surged by 47.92%, net profits have increased by 16.9%, resulting in a price/earnings to growth (PEG) ratio of 0.7. This indicates that the stock’s price appreciation has outpaced earnings growth, a factor to consider in valuation analysis.
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Consistent Long-Term Returns
Karur Vysya Bank Ltd. has demonstrated consistent outperformance relative to broader market indices. It has outpaced the BSE500 index in each of the last three annual periods, delivering superior returns to investors. The stock’s 3-year return of 196.44% and 5-year return of 582.48% highlight its sustained growth and value creation over time.
The bank’s ability to maintain positive quarterly results for over four years, combined with strong institutional backing and solid financial metrics, has contributed to its steady rise and the recent all-time high price.
While the stock’s valuation is elevated, the underlying fundamentals and historical performance provide context for its premium pricing in the market.
Summary
Karur Vysya Bank Ltd.’s stock reaching Rs.277.6 marks a significant milestone, reflecting years of strong financial performance, prudent risk management, and consistent growth. The bank’s robust capital adequacy, low NPAs, and healthy profit growth underpin its market valuation. Its sustained outperformance against key indices and positive momentum across multiple timeframes highlight the stock’s resilience and appeal within the private sector banking segment.
Investors and market participants will note the bank’s elevated valuation metrics alongside its quality fundamentals as it continues to trade at all-time highs.
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