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Last Updated on: 23 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Karnataka Bank Ltd

Basic Stock Data

Last Updated: June 19, 2024, 2:21 pm

Market Cap 8,576 Cr.
Current Price 227
High / Low287/150
Stock P/E6.60
Book Value 263
Dividend Yield2.21 %
ROCE6.76 %
ROE15.9 %
Face Value 10.0
PEG Ratio0.33

Competitors of Karnataka Bank Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
IDFC First Bank Ltd 55,203 Cr. 78.0101/70.618.8 39.10.00 %7.79 %11.4 % 10.0
Dhanlaxmi Bank Ltd 1,117 Cr. 44.259.0/16.519.3 38.00.00 %5.53 %6.02 % 10.0
Yes Bank Ltd 75,574 Cr. 24.132.8/14.158.8 13.80.00 %6.29 %3.23 % 2.00
Ujjivan Small Finance Bank Ltd 9,645 Cr. 49.963.0/36.67.51 20.52.50 %12.3 %32.0 % 10.0
Kotak Mahindra Bank Ltd 3,52,991 Cr. 1,7761,988/1,54419.4 5630.08 %8.75 %16.3 % 5.00
Industry Average143,477.44 Cr404.0615.99168.140.63%7.84%15.36%6.00

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Revenue1,4171,5241,5541,5651,5791,6291,7711,8511,9691,9592,0272,1132,201
Interest9589499179429229429681,0161,1091,1441,2041,2851,367
Expenses736735766601629770471672823689670758938
Financing Profit-276-160-1282127-833321623712615370-104
Financing Margin %-20%-11%-8%1%2%-5%19%9%2%6%8%3%-5%
Other Income318207275196257133260205395324250326419
Depreciation0000000000000
Profit before tax424614621828450592367432450402396315
Tax %25%-130%14%33%54%-129%30%18%18%18%18%16%13%
Net Profit31106126147130114412301354371330331274
EPS in Rs1.013.414.044.714.193.6713.229.6411.3311.8710.569.557.27
Gross NPA %4.91%4.82%4.50%4.11%3.90%4.03%3.36%3.28%3.74%3.68%3.47%3.64%3.53%
Net NPA %3.19%3.00%2.84%2.45%2.42%2.16%1.72%1.66%1.70%1.43%1.36%1.55%1.58%

Last Updated: June 9, 2024, 10:08 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 26, 2024, 11:42 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Revenue3,7644,1894,6984,9925,1855,4245,9066,4756,2326,2227,2208,298
Interest2,8613,1333,5303,6893,6953,5664,0014,4444,0493,7314,0355,000
Expenses8131,1271,1311,2751,7822,4522,2452,7062,9022,6772,6503,055
Financing Profit91-713827-292-594-340-676-719-186535244
Financing Margin %2%-2%1%1%-6%-11%-6%-10%-12%-3%7%3%
Other Income3985065075438099541,0021,2621,4049549931,319
Depreciation2426-1442505054647474860
Profit before tax4644095595284683106085226126951,4411,563
Tax %25%24%19%21%3%-5%21%17%21%27%18%16%
Net Profit3483114514154523264774324835091,1801,306
EPS in Rs11.2010.0114.5213.3514.5510.4715.3513.8915.5216.3537.7934.63
Dividend Payout %22%24%21%23%25%26%21%0%12%24%13%16%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-10.63%45.02%-7.98%8.92%-27.88%46.32%-9.43%11.81%5.38%131.83%10.68%
Change in YoY Net Profit Growth (%)0.00%55.65%-53.00%16.90%-36.79%74.20%-55.75%21.24%-6.42%126.44%-121.15%

Growth

Compounded Sales Growth
10 Years:7%
5 Years:7%
3 Years:10%
TTM:15%
Compounded Profit Growth
10 Years:15%
5 Years:22%
3 Years:39%
TTM:11%
Stock Price CAGR
10 Years:9%
5 Years:19%
3 Years:52%
1 Year:41%
Return on Equity
10 Years:11%
5 Years:11%
3 Years:13%
Last Year:16%

Last Updated: June 16, 2024, 4:51 pm

Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Equity Capital188188188188188283283283311311311312
Reserves2,4102,6692,8643,2013,5024,8605,1285,5035,6606,3316,7847,901
Borrowings32,75537,63642,49847,04651,54057,56663,68771,77875,85077,42082,70188,931
Other Liabilities9681,0331,4791,4011,2701,3301,2761,4831,4931,5531,7891,914
Total Liabilities36,32241,52647,02951,83756,50064,03970,37479,04683,31385,61591,58499,058
Fixed Assets152167197292307721762775826838805846
CWIP00000000011329
Investments12,84113,43215,22714,03216,25720,22015,44416,18517,54521,63522,04123,326
Other Assets23,32827,92731,60537,51339,93743,09854,16862,08664,94263,14268,72574,857
Total Assets36,32241,52647,02951,83756,50064,03970,37479,04683,31385,61591,58499,058

Reserves and Borrowings Chart

Karnataka Bank Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -122103404648636-184721-2,231-903,369-4671,830
Cash from Investing Activity -28-40-54-80-58-40-91-68-56-87-56-87
Cash from Financing Activity 292534-291-147453-3032,307-545-885-355-20
Net Cash Flow-120883842774312293279-6902,396-8791,723

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow776.00-41.00-46.00-50.00-56.00-61.00-69.00-73.00-75.00-80.00-86.003.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
ROE %10%13%10%14%12%10%6%9%7%8%7%15%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
FIIs9.99%9.10%11.16%11.92%15.46%18.15%19.75%20.30%21.03%22.67%19.03%18.86%
DIIs5.85%5.64%5.63%5.34%5.34%5.34%5.43%5.74%6.00%8.60%17.69%23.06%
Public84.16%85.26%83.21%82.74%79.20%76.49%74.80%73.95%72.95%68.71%63.26%58.08%
No. of Shareholders2,30,9142,20,4592,29,4922,32,1062,27,1402,21,5282,26,5952,35,1042,42,1252,59,5212,67,6373,00,872

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Quant Small Cap Fund8,930,0001.61209.01879,4652024-06-20915.39%
Quant Active Fund4,133,2791.396.74879,4652024-06-20369.98%
Bandhan Small Cap Fund1,843,7111.1143.15879,4652024-06-20109.64%
Quant Flexi Cap Fund1,691,2331.3639.58879,4652024-06-2092.3%
Mahindra Manulife Small Cap Fund1,420,0001.0733.24879,4652024-06-2061.46%
ITI Small Cap Fund879,4651.0420.58879,4652024-06-200%
Motilal Oswal Nifty Microcap 250 Index Fund351,6371.328.23879,4652024-06-20-60.02%
ITI Multi Cap Fund285,9280.856.69879,4652024-06-20-67.49%
ICICI Prudential Retirement Fund - Pure Equity239,6001.165.61879,4652024-06-20-72.76%
JM Value Fund170,0000.983.98879,4652024-06-20-80.67%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
Face Value10.0010.0010.0010.0010.00
Basic EPS (Rs.)39.8437.8716.3615.5213.89
Diluted EPS (Rs.)39.6637.6416.2915.4713.89
Cash EPS (Rs.)34.6340.5318.6917.8815.94
Book Value[Excl.RevalReserv]/Share (Rs.)287.53246.57213.23198.69176.93
Book Value[Incl.RevalReserv]/Share (Rs.)287.53262.91227.97213.66192.05
Operating Revenue / Share (Rs.)219.97231.16199.94200.48208.27
Net Profit / Share (Rs.)34.6337.7716.3215.5213.89
Net Profit After MI / Share (Rs.)34.6337.7716.3215.5213.89
Net Profit Margin (%)15.7416.338.167.746.66
Net Profit After MI And SOA Nargin (%)15.7416.338.167.746.66
Operating Profit Margin (%)-0.142.59-7.16-16.24-12.81
Return On Assets (%)1.121.190.550.560.51
Return On Equity / Networth (%)12.0415.317.657.817.84
Net Interest Margin (X)2.843.212.702.552.43
Cost To Income (%)34.4236.5040.9241.3536.97
Interest Income / Total Assets (%)7.147.286.757.287.77
Non-Interest Income / Total Assets (%)1.131.001.031.741.51
Operating Profit / Total Assets (%)-0.010.18-0.48-1.18-0.99
Operating Expenses / Total Assets (%)2.111.981.961.961.96
Interest Expenses / Total Assets (%)4.304.074.054.735.33
Enterprise Value (Rs.Cr.)103292.7687975.9580467.2674454.2574404.58
EV Per Net Sales (X)12.4512.1812.9311.9511.49
Price To Book Value (X)0.780.550.250.300.23
Price To Sales (X)1.020.580.270.300.20
Retention Ratios (%)100.0089.4488.98100.0077.11
Earnings Yield (X)0.150.270.290.250.32

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 282.09

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 24.27% compared to the current price 227

Intrinsic Value: 338.64

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 49.18% compared to the current price ₹227

Last 5 Year EPS CAGR: 20.05%

*Investments are subject to market risks

Strength and Weakness

Unable to fetch valid data for stock valuation.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Karnataka Bank Ltd:
    1. Net Profit Margin: 15.74%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: N/A% (Industry Average ROCE: %)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: N/A% (Industry Average ROE: %)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): N/A
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: N/A
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. ✗ Stock P/E: 6.60 (Industry average Stock P/E: )
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. ✗ Total Debt / Equity: N/A
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

Karnataka Bank Ltd. is a Public Limited Listed company incorporated on 18/02/1924 and has its registered office in the State of Karnataka, India. Company’s Corporate Identification Number(CIN) is L85110KA1924PLC001128 and registration number is 001128. Currently Company is involved in the business activities of Monetary intermediation of commercial banks, saving banks. postal savings bank and discount houses. Company’s Total Operating Revenue is Rs. 6221.66 Cr. and Equity Capital is Rs. 311.17 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Finance - Banks - Private SectorP B No 599, Mangaluru Karnataka 575002investor.grievance@ktkbank.com
https://karnatakabank.com
Management
NamePosition Held
Mr. P Pradeep KumarChairman & Ind.Director
Mr. H SrikrishnanManaging Director & CEO
Mr. Sekhar RaoExecutive Director
Mr. B R AshokNon Executive Director
Mr. S Balakrishna AlseIndependent Director
Mr. Keshav Krishnarao DesaiIndependent Director
Justice A V ChandrashekarIndependent Director
Mrs. Uma ShankarIndependent Director
Dr. D S RavindranIndependent Director
Mr. Jeevandas NarayanIndependent Director
Mr. Kalmanje Gururaj AcharyaIndependent Director

FAQ

What is the latest fair value of Karnataka Bank Ltd?

The latest fair value of Karnataka Bank Ltd is ₹282.09.

What is the Market Cap of Karnataka Bank Ltd?

The Market Cap of Karnataka Bank Ltd is 8,576 Cr..

What is the current Stock Price of Karnataka Bank Ltd as on 23 June 2024?

The current stock price of Karnataka Bank Ltd as on 23 June 2024 is ₹227.

What is the High / Low of Karnataka Bank Ltd stocks in FY 2024?

In FY 2024, the High / Low of Karnataka Bank Ltd stocks is 287/150.

What is the Stock P/E of Karnataka Bank Ltd?

The Stock P/E of Karnataka Bank Ltd is 6.60.

What is the Book Value of Karnataka Bank Ltd?

The Book Value of Karnataka Bank Ltd is 263.

What is the Dividend Yield of Karnataka Bank Ltd?

The Dividend Yield of Karnataka Bank Ltd is 2.21 %.

What is the ROCE of Karnataka Bank Ltd?

The ROCE of Karnataka Bank Ltd is 6.76 %.

What is the ROE of Karnataka Bank Ltd?

The ROE of Karnataka Bank Ltd is 15.9 %.

What is the Face Value of Karnataka Bank Ltd?

The Face Value of Karnataka Bank Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Karnataka Bank Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE