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South Indian Bank getting increased investor attention

October 26th, 2010

Amongst the many banking stocks, South Indian Bank is one that is gathering interest both in terms of investors and brokerage firms. The bank has recently came out with some good quarterly results and needless to say more brokerage firms have come forward to give a BUY rating to the stock. Some even say that the stock has an possible upside of up to 20% which makes it an interesting pick for those who wish to have a small-cap banking script in their portfolio.

Edelweiss in its report on October 21, 2010 has given a Buy rating and expects the bank to give a ROE of 19%.

Emkay in its report dt October 21, 21010 has highlighted strong growth of 39.4%, growth being driven by growth in advances and qoq expansion in NIMs. It says the gross NPAs remain stable. However with 1.6x FY12E ABV, the firm has downgraded the stock from a BUY to ACCUMULATE with a target of Rs. 30.

Angel Broking in its October 22, 2010 has given a NEUTRAL rating saying that the stock is expensive relative to its peers as well as its own historical range.

As on October 25, 2010, the stock is trading at Rs. 28.70 on NSE. The script’s 52-week high is at Rs. 29 and 52-week low is at Rs. 13.42.

Entry Filed under: Equity Markets, Banks & NBFC