Karur Vysya Bank - Improving visibility on RoA recovery; upgrade to BUY - ICICI Securities
Posted On: 2020-12-15 02:06:20 (Time Zone: Arizona, USA)
We upgrade our rating on Karur Vysya Bank (KVB) to BUY on improving visibility on RoA recovery, continuity of strategic initiatives even after management change and favourable risk-reward. We see a retracement of valuation to 1x (~15% lower than 5yr average multiple) on likely ~60bps RoA improvement over FY21E-FY22E to 0.9%. Key rationale: a) overall collections at ~95% as on 29th Oct 20, with better collection in commercial segment than peers, speaks for KVB s superior customer profile; b) calibrated growth during FY17-FY20 (5% loan CAGR) to ensure lower legacy stress and strong PCR at 64% would keep credit cost low; c) strong liability franchise, adequate capital (tier-1 @ 16.4%) and completion of corporate book realignment will help revive credit growth quicker than peers; and d) revamped digital platform and business processe
Upgrade KVB stock to buy on RoA recovery visibility - The Financial Express
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Amazon Pay (India) Private Limited, the digital payments arm of the e-commerce giant reported its revenues for the financial year 2019-20 as Rs 1,370 crore, a 64 per cent jump since the last financial year. The company further reported a net loss of Rs 1,868 crore during the same fiscal. This is a 61 per cent increase from the last financial year, show regulatory documents sourced from business intelligence platform Tofler. The company’s total expenses for the fiscal were reported as Rs 3,238 crore. The payments arm competes with rivals Walmart-owned PhonePe, Alibaba-backed Paytm, and Google s mobile payment service Google Pay. After the closure of the financial year 2019-20, the firm has revised authorised share capital from Rs 6,000 crore to Rs 16,000 crore in an extraordinary general meeting held in September this year. The company has raised a capital of about Rs 3405 crore during and after the closure of the latest financial year from the parent company, for which allotment