CSB Bank – The emerging banking stock
When I first started reading about the company, their financial outlook seemed very impressive in the last few years. This is one of the banking stocks which can give good returns in the coming years.
Business Profile
CSB Bank provides various banking products and services to enterprises, retail and NRI customers in India. It offers services in loans, investments and insurance plans. They currently have 411 branches and around 300 ATMs across India. The company was previously known as Catholic Syrian Bank and changed its name to CSB Bank in June 2019. It is currently headquartered at Thrissur.
Fundamental Analysis
Price to Earnings(P/E) Ratio:
CSB Bank belongs to the Banking industry where the average price to earnings ratio is 28.9. The P/E ratio of CSB Bank is currently standing at 25.4 which is below the industry average. This shows the company is at a good valuation in terms of P/E ratio.
Price to Book(P/B) Value:
The average price to book value in the Banking industry is 3.39x. P/B ratio of CSB Bank is currently at 2.83x which means it is undervalued.
Financial Trend:
The company’s profit and revenue have increased in the past 2 years. It has nearly seen a 1,600% growth in profit in 2021 when compared to 2020. Also the company had the highest-ever net profit of around Rs 218 crores in the Financial Year 2021.
Image Source: Tickertape
Image Source: Simplywall
The company’s growth can be seen from the 2 images above. This shows a positive outlook of the company as they are consistently increasing their operations across the country.
Technical Analysis
The stock is currently moving above it’s 50 and 200 moving average. It is in a uptrend since the last year after the covid fall. While writing this article today, CSB Bank have crossed its All Time High of Rs 313 and has touched Rs 320 today.
As the company’s outlook is positive and the stock have also crossed it’s all time high. I am expecting a good up move from here.
My Positions
I bought the stock around Rs 268 just before their earning announcement. Below is my position on it.
I will be holding this share for a few months as I am expecting a good move from it.
If you liked the article do share it with your friends as it will motivate me to write more. 😊
