Shares of Karnataka Bank have been on an impressive bull run in the past few months. In the past six months, the stock has surged close to 80%. Just today the stock surged over 7% to hit an intraday high of ₹245.60, close to its 52-week high of ₹247.60.
The Investment: If you had made a ₹10,000 investment in Karnataka Bank on September 19, 2022, you would have been able to buy around 112 shares of the company. Fast forward to today, the value of those 112 shares would have raced up to ₹27,020.
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Background: The bank that will celebrate its centenary next year, is a south-based private lender with a large presence in state of Karnataka. The bank has 901 branches across the country, out of which 575 branches are in the state of Karnataka. Its customer base is at 1.3 crore.
The LIC-backed stock is surging today as domestic brokerage firm ICICI Direct assigned a ‘buy’ rating for the stock with a target price of ₹285 in the next six to 12 months. The price target indicates a 25% upside from the stock’s last closing price of ₹228. LIC owns a 4.66% stake in the company.
The brokerage said that the lender’s strategy to harness core competency with a focus on geographic & product expansion along with investment in digital technology is expected to aid growth and asset
quality.
Price Action: Karnataka Bank’s share price was up 5.24% to trade at ₹239.95 on Monday afternoon.
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Disclaimer: Benzinga India doesn’t give financial advice. The above article is for educational purposes alone.
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