The Karur Vysya Bank Limited

Financial Services — Banks - Regional · NSE

₹354.05+₹8.40 (+2.43%)

DalalBaazaar Score

83 / 100

🟢 Strong

Verdict

ATTRACTIVE

Risk

Low

Driven by negative free cash flow.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

The 60-second version of The Karur Vysya Bank Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

The Karur Vysya Bank Limited provides various banking and financial services for personal and corporate customers in India. The company operates through Treasury, Corporate and Wholesale Banking, Retail Banking, and Other Banking Operations segments.

IndustryBanks - Regional

SectorFinancial Services

Employees9,845

Annual revenue₹7,023 Cr

How does it make money?

Turns over ₹7,023 Cr a year. Of every ₹100 of sales, about ₹36 reaches shareholders as profit. Each of its 9,845 employees supports ₹71.3 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹71.3 lakh

Who are its competitors?

The closest listed comparisons in its industry are HDFC BANK LTD, ICICI BANK LTD., KOTAK MAHINDRA BANK LTD, AXIS BANK LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE13.8%

What is the outlook?

20 analysts covering the stock expect revenue to grow about 15.0% and earnings to grow about 9.5% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+15.0%

Est. earnings growth+9.5%

Analysts20

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +67% while net margin moved +36% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+67%

Margin effect+36%

DalalBaazaar Score

83/ 100

Strong

Weighted across six categories. Every point is explained below.

✓ Beta of -0.11 — historically steadier than the index
✗ Trading within 10% of its 52-week high — entries here carry more pullback risk
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

89/ 100

Excellent

How good the business is, ignoring the share price entirely.

Valuation

77/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

11.6x

3Y Median

13.1x

40 monthly readings · mean 12.7x · range 8.8x–17.0x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 12% below its 3y median of 13.1x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 32% below the peer median of 17.0x.

vs. its own history

Fair

13.1x median over 40 months · -12%

vs. sector peers

Cheap

17.0x median of 4 peers · -32%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

—

PEG

0.37

What's Good / What's Bad

🟢 What's Going Well2

Return on equity is rising
ROE has improved from 12.9% to 17.8%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 watch

🟡Low reported insider holdingOwnership
Reported insider holding is 0.5%. For Indian companies this field is an unreliable proxy — check the official promoter shareholding in the exchange filing.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 32% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

No clear risk case emerges from the available numbers — which is not the same as there being none.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 14% a year✓ 18.7% CAGR
Latest reported year was 21.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2Return on equity stays above 19%✓ 21.0%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Valuation vs its own median of 13.1x✓ 11.6x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 10 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✗ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 4 neutral · 1 weak

Market Cap

₹34,225 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

11.6x

Cheap

Cheap against the generic band

P/B Ratio

2.22x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹30.59

Profitable

Profitable on a per-share basis

ROE

21.0%

Strong

Strong capital efficiency

ROCE

Not meaningful

N/A for lenders

Banks and NBFCs don't report capital employed the way other businesses do

Debt/Equity

0.19x

Low

Conservative leverage

Revenue Growth (YoY)

21.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

37.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.73%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹706 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

10.2x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

ROA

2.1%

Weak

Assets generate little profit

Operating Margin

57.5%

Good

Healthy core-business profitability

Net Margin

42.5%

Good

Strong bottom-line conversion

Beta (vs Nifty)

-0.11

Defensive

Steadier than the market

52W Range Position

92%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

331.4 / 335.9

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

71.3

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4,196 Cr	₹4,971 Cr	₹6,089 Cr	₹7,023 Cr	+18.7%
PAT (Net Profit)	₹1,106 Cr	₹1,605 Cr	₹1,942 Cr	₹2,510 Cr	+31.4%
EPS	₹11.48	₹16.64	₹20.1	₹25.97	+31.3%
ROE	12.9%	16.0%	16.3%	17.8%	—
Total Debt	₹1,432 Cr	₹2,478 Cr	₹1,217 Cr	₹2,623 Cr	+22.3%
Free Cash Flow	₹1,155 Cr	₹2,856 Cr	₹4,315 Cr	-₹706 Cr	—

🟢 Revenue has grown at 18.7% a year over 3 years.

🟢 PAT (Net Profit) has grown at 31.4% a year over 3 years.

🟢 EPS has grown at 31.3% a year over 3 years.

🟢 ROE has risen from 12.9% to 17.8% over 3 years (+4.9 pts).

🔴 Total Debt has grown at 22.3% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹1,155 Cr to -₹706 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1.37 L Cr

Total Liabilities

₹1.22 L Cr

Cash & Equivalents

₹5,303 Cr

Operating Cash Flow

-₹554 Cr

Capex

-₹152 Cr

Shareholding (proxy)

Institutional Holding

42.4%

Insider Holding

0.5%

Corporate Actions

Next Earnings

15 Oct 2026

Dividend Rate

₹2.6

Ex-Dividend Date

24 Jul 2026

Analyst Consensus

Recommendations

19 Buy · 1 Hold · 1 Sell

Target Price (Mean)

₹391.43

+10.6% vs CMP

Target Range

₹300 – ₹450

Peer Comparison

Company	P/E	ROE
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
KOTAK MAHINDRA BANK LTD	21.9x	11.2%
AXIS BANK LIMITED	14.5x	13.4%

Recent News

1 positive2 mixed3 general

Karur Vysya Bank schedules investor meets in Hong Kong and Singapore

scanx.trade, 18 Oct

Karur Vysya Bank shares rally 6% after Q2 profit jumps 37% YoY

The Economic Times, 16 OctResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Karur Vysya Bank shares jump 6% to hit a 52-week high after Q2 results - Should you buy? Rationale, target price

Livemint, 16 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Karur Vysya Bank Shares at 52-Week High: Q2 and Targets

Univest, 15 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Buy Karur Vysya Bank: target of Rs 450: ICICI Securities

Moneycontrol.com, 16 Oct

KARURVYSYA: Higher Margin Assumptions Offset Slower Growth In A Fairly Valued Setup

Simply Wall Street, 16 Oct

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
Reported insider holding is low — cross-check the official promoter shareholding % in the company's exchange filing.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Valuation

MiddlingRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

All 3 tripwires holding · see Key things to watch ↑