ScoreWhy is Karnataka Bank Ltd ?
1
Strong lending practices with low Gross NPA ratio of 3.32%
2
Strong Long Term Fundamental Strength with a 19.27% CAGR growth in Net Profits
3
Healthy long term growth as Net profit has grown by an annual rate of 19.27%
4
Flat results in Dec 25
- CASH AND CASH EQUIVALENTS(HY) Lowest at Rs 5,001.72 cr
- NON-OPERATING INCOME(Q) is 84.69 % of Profit Before Tax (PBT)
5
With ROA of 1, it has a Attractive valuation with a 0.6 Price to Book Value
- The stock is trading at a fair value compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 24.70%, its profits have fallen by -10.8%
6
High Institutional Holdings at 27.54%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
7
Market Beating Performance
- The stock has generated a return of 24.70% in the last 1 year, much higher than market (BSE500) returns of 9.66%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Karnataka Bank should be less than 10%
- Overall Portfolio exposure to Private Sector Bank should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Private Sector Bank)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Karnataka Bank for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Karnataka Bank
24.7%
0.84
29.35%
Sensex
5.52%
0.46
11.95%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Net Interest Income Growth (5y)
3.72%
Net Profit Growth (5y)
19.27%
Advance to Deposit
73.08%
Capital Adequacy Ratio (Tier 1)
14.40%
Gross NPA (latest)
3.32%
Gross NPA (avg)
3.49%
Coverage Ratio (avg)
53.44%
Cost to Income (avg)
54.14%
Net Interest Margin (avg)
3.25%
Operating Profit to Assets (avg)
4.08%
ROA (avg)
0.99%
Net Debt to Equity (avg)
0
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
7
Price to Book Value
0.66
PEG Ratio
NA
Dividend Yield
2.27%
ROE (Latest)
9.17%
ROA (Latest)
0.97%
Net NPA to Book Value
7.90
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
PBT LESS OI(Q)
At Rs 54.64 cr has Grown at 361.3% (vs previous 4Q average
PBDIT(Q)
Highest at Rs 149.50 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 6.73%
NET NPA(Q)
Lowest at 1.31%
-2What is not working for the Company
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 5,001.72 cr
NON-OPERATING INCOME(Q)
is 84.69 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Karnataka Bank
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 54.64 cr has Grown at 361.3% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 11.85 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 149.50 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 6.73%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Net NPA - Quarterly
Lowest at 1.31%
in the last five quartersMOJO Watch
Proportion of stressed loans given by the bank are falling
Net NPA (%)
Here's what is not working for Karnataka Bank
Non Operating Income - Quarterly
is 84.69 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 5,001.72 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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