CSB
CSB BANK-IPO
POSITIVE SIDE:
CSB Bank provides products
and services primarily through an extensive physical network of branches and
ATMs. It operates in 16 States and four Union Territories in India, reaching
1.3 million customers through 414 branches (excluding three service branches
and two asset recovery branches) and 277 ATMs, as on March 31, 2019.
STRONG SME
CONTRIBUTION
In total loans SME customers
accounted for 43%, 37%, and 32% as on March 31, 2017, March 31, 2018, and March
31, 2019, respectively.
STRONG GOLD
LOAN PORTFOLIO
Gold loans constituted a
major portion of advances, contributing 24%, 26%, and 31% of total advances as
on March 31, 2017, March 31, 2018, and March 31, 2019, respectively.
RISK(NEGATIVE SIDE).
GROSS NPA
Gross NPAs represented 7.25%, 7.89%, and 4.87% of total
advances as on March 31, 2017, March 31, 2018, and March 31, 2019,
respectively.
BANK CONCNTRATING BUSINESS ONLY
IN SOUTH INDIA.
Any adverse change in the
economic, political, or geographical conditions of Kerala and other states in
southern India can impact results of operations. Additionally.
MORE CONCENTRATION
ON GOLD LOAN
MAJOR BUSINESS COMES
FROM GOLD LOAN, IF GOLD PRICE
WILL EFFECT ADVERSELY BUSINESS
WILL BE
IN RISK.
VALUEATION
WITH A INTEREST
INCOME OF 732.3 CRORE ,
CSB REPORTED A NET PROFIT OF
44.27(LAST 2 YEARS
REPORTED LOSS) CORE AND
A EPS OF 3.86 .
CURRENTLY CSB BANK’S
LOWER PRICE BAND IS AROUND 50 PE X
,2.2 X P/BV WHICH IS HIGHER TO PEER BANKS LIKE FEDERAL
BANK AND DCB.
PEER
VALUATION
FEDERAL BANK (CMP 88) 11.19 PE , 1.27 X P/BV.
DCB (CMP 176) 15.4 PE ,
1.82X P/BV .
KTKBANK (CMP 74) 4.29 PE , .38 X P/BV
VALUATION PART CSB IS
EXPENCIVE THAN PEER
GROUP.
Disclaimer: This
Blog, its owner, creator / contributor is not a research analyst and expressing
opinion only as an individual investor in Indian equities. He/She is not
responsible for any loss arising out of any information, post or opinion
appearing on this blog. Investors are advised to consult financial consultant
before acting on any such information. All information in this blog is posted
for personal study.
* Can expect listing gain dont hold or fresh buy not entertain .expecting below 200 level after listing .
