Sunday, November 19, 2017

Karnataka Bank: This Vijay Kedia smallcap stock is HDFC Securities’ pick of the week

With an experience of nearly three decades in the stock market, Vijay Kedia is known for his ability to pick multi-baggers. His early picks include names such as ABC Bearings, Punjab Tractors, Cera Sanitaryware and Atul Auto which have multiplied many times over since he invested. In fact, last month Aries Agro Ltd, surged more than 40% in two trading sessions to hit 52-week high of Rs 244, after Vijay Kedia picked up 2% stake in the company. The ace investor is bullish on the shares of Karnataka Bank. As at the end of September-17, he held 2% stake in the company.
Vijay Kedia is not the only one rooting for Karnataka Bank shares. HDFC Securities has a buy rating on the shares with a target price of Rs 210. Karnataka Bank shares closed at Rs 156.3, up by more than 1.1%. HDFC Securities says that Karnataka bank is targeting to double its business to Rs 1,80,000 crore by FY-20, to become a preferred banker to at least 1% of India’s population. Further, the research report observes that the bank expects to increase the number of touchpoints to 3,500 with 1,000 branches and 2,500 ATMs.

In fact Vijay Kedia believes that the stock could be a multibagger. “I’m buying Karnataka Bank.  All my stocks are very simple to explain. The bank has projected to double its turnover by 2020 and simple yardstick which is going on in the banking industry is if a bank has and it is a private sector bank,” he explained in an interview to ET Now last year, adding, “I am expecting it to be a three bagger or four bagger.” Karnataka Bank shares have returned more than 35% in the year so far, as compared to BSE Bankex returns of 40% in the same period.


Net read : Very important financial tips for individuals

No comments:

Post a Comment