Trending Stock: Why is this banking stock running away? 52 percent up in 3 days, still a big jump left
Karnataka Bank shares rose 19 per cent on Friday to reach a four-year high.
Investors’ confidence in the stock has increased due to record net profit in the September quarter.
Brokerage house Axis Direct has fixed the new target price of the stock at Rs 156.
Mumbai. During the earnings season in the stock market, many companies are presenting better results and on the basis of these results, many stocks saw tremendous growth. In this episode, the stock of private sector Karnataka Bank has reached a four-year high with a gain of 19 percent on Friday.
The share price of Karnataka Bank reached Rs 143 on the Bombay Stock Exchange. The stock price has gained 52 per cent in the last three days. If market analysts are to be believed, even now it is expected to rise by 13 percent.
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Shares rise on record net profit
In fact, Karnataka Bank has made a record net profit in the September quarter of the current year, due to which the confidence of the investors has increased. In the July-September quarter, the bank’s profit has come up by 228 percent year-on-year to Rs 411 crore. The improvement in asset quality of the bank, healthy growth of advances and cost control has led to an increase in net profit.
According to the news of Money Control, brokerage house Axis Direct says that the performance of the bank in the second quarter has been better than expected on all fronts. The bank has made profit in the September 2022 quarter and has achieved the biggest profit so far in the first half of any financial year.
Brokerage house gave new target
At the same time, the overall loan growth of the bank is estimated at 15 percent, the asset quality is getting better.
Management expects further improvement in gross and net NPAs and slippages to continue.
Keeping all these aspects in mind, the brokerage house has given an opinion to buy from hold by upgrading the rating of the share of Karnataka Bank. Axis Direct has fixed the target price of the stock at Rs 156, which shows a rise of 13 per cent from the current price.
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Tags: business news, Multibagger stock, stock market
FIRST PUBLISHED : November 05, 2022, 07:15 IST