India's Karur Vysya Bank rises; Axis Capital begins coverage with "buy"

Karur Vysya Bank

25/03/2025 07:08

** India's Karur Vysya Bank KARU.NS rises 2.8% to 214.99 rupees

** Axis Capital initiates coverage with "buy" rating, PT of 295 rupees, indicating implied upside of 41% over its last close

** Brokerage's PT on KARU is the third-highest among 14 analysts tracking the stock, which has an average rating of "strong buy"

** Management overhaul, introduction of digital underwriting and a focus on agriculture, retail and commercial bank loans augur well for KARU's earnings growth, says Axis

** Says, changes in underwriting to help keep credit costs lower

** Brokerage estimates loan growth and PAT growth CAGR of 16% and 13%, respectively, over FY2025-2027

** KARU shares down 2.3% in 2025 vs 14.2% fall in the smallcap 100 index .NIFSMCP100

 (Reporting by Bharath Rajeswaran in Bengaluru)

 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))