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₹27 Stock: Ready To Run Again; Expert Has Advised To Buy This Small-cap Stock

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Small-cap Bank Stock to Buy: Brokerage firm has selected South Indian Bank Ltd (NSE: SOUTHBANK), an attractive banking stock from the small-cap space, for investment. The brokerage says that the bank is currently preparing for business restructuring. 

The bank’s focus is on retail and MSME segments. Fresh growth is expected after restructuring.

The stock price has corrected by more than 12 percent in the last month. However, this smallcap bank share has given a return of 80 percent in a year.

South Indian Bank: Price Will Go Up To ₹35

Brokerage has advised buying small-cap bank shares of South Indian Bank from a 12-month perspective. The target price per share is also Rs 35.

The share is currently trading around Rs 27. In such a situation, this share can give a 30 percent return from the current price. South Indian Bank is an old Kerala-based bank. 

In the last few years, the bank has gone through various business transformations and its performance has gradually improved.

South India is a major market for the bank. The bank has 948 ATMs and 1315 branches. The bank’s loan book is Rs 776.86 cr. Of this, about 36 percent is from Kerala. The asset mix of the bank is diversified. 

This includes corporate, retail, business, and agriculture. Corporates account for the largest share (38%) of all loans. Whereas retail is 23 percent, business is 20 percent and agriculture is 19 percent.

South Indian Bank: What Are The Triggers?

On this bank stock, which looks good for investment from the perspective of the next year, the brokerage house says that the bank has focused on five areas to maintain the transformation journey.

After restructuring, the bank is now working on a strategy to accelerate growth and profitability. 

The bank will give impetus to its MSME and retail portfolio by strengthening its branches. Training will improve the productivity of branches.

The ‘tooth-to-tail’ ratio will be increased from 75:25 to 85:15. There is also a focus on sourcing non-branch business through partnerships.

The bank’s Q3FY24 performance has been strong. On an annual basis, credit growth increased by 11 percent to Rs 75340 crore. 

Strong growth came from the corporate segment. Deposit growth was 9 percent on an annual basis. Whereas the CASA ratio was 31.8 percent.

About South Indian Bank Ltd Company 

The South Indian Bank Limited (the Bank) is a bank company. The Bank offers a range of financial and banking services including retail and corporate banking and treasury operations. 

The Bank operates through the following four areas: Treasury, Retail Banking, Corporate/ Wholesale Banking, and Other Banking Operations. 

The Treasury segment is comprised of the interest earned on the portfolio of investments from the company, profits or losses on investment activities & earnings from foreign exchange business. 

The Wholesale and Corporate Banking segment gives loans to corporate customers.

It also provides loans to the Retail Banking segment provides loans to customers who are not corporate. 

In addition, the Other Banking Operations segment includes earnings from para-banking activities like debit cards, third-party product distribution, and related expenses. 

The Bank operates a network of around 942 bank branches and 175 automated ATMs (ATMs) located in India.

Fundamental Analysis of South Indian Bank Ltd

Market Cap₹ 7,131 Cr.
Current Price₹ 27.40
52-wk High₹ 36.9
52-wk Low₹ 13.2
Stock P/E6.39
Book Value₹ 25.5
Dividend1.10 %
ROCE5.23 %
ROE12.4 %
Face Value₹ 1.00
P/B Value1.07
OPM61.8 %
EPS₹ 4.27
Debt₹ 98,645 Cr.
Debt to Equity14.8

South Indian Bank Share Price Target 2024 To 2030

Year1st Target2nd Target
2024₹ 35₹ 45
2025₹ 50₹ 64
2026₹ 76₹ 96
2027₹ 112₹ 135
2028₹ 154₹ 188
2029₹ 204₹ 223
2030₹ 235₹ 265
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South Indian Bank Ltd Shareholding Pattern

FII Holding
Dec 202214.88%
Mar 202314.58%
June 202313.59%
Sept 202315.00%
Dec  202314.68%
DII Holding
Dec 20226.87%
Mar 20237.64%
June 20237.84%
Sept 20236.59%
Dec  20237.61%
Public Holding
Dec 202278.22%
Mar 202377.77%
June 202378.57%
Sept 202378.40%
Dec  202377.70%
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South Indian Bank Ltd Share: Last 5 Years’ Financial Condition

To better understand how the market is performing, let’s look at the outlook of this share in the previous years. 

However, investors should be aware of the risks and the market conditions before making any investment decision.

Last 5 Years’ Sales:

2019₹ 6,877 Cr
2020₹ 7,764 Cr
2021₹ 7,305 Cr
2022₹ 6,587 Cr
2023₹ 8,311 Cr

Last 5 Years’ Net Profit:

2019₹ 248 Cr
2020₹ 105 Cr
2021₹ 62 Cr
2022₹ 45 Cr
2023₹ 1,116 Cr

Last 10 Years’ Profit Growth:

10 Years:4%
5 Years:18%
3 Years:95%
Current Year:57%
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Last 10 years’ Return on Equity (ROE):

10 Years:6%
5 Years:4%
3 Years:5%
Last Year:12%

Sales Growth Over 10 Years:

10 Years:5%
5 Years:3%
3 Years:-2%
Current Year:21%

Conclusion

This article is a complete guide about South Indian Bank Ltd Share. This information and forecasts are based on our research, company fundamentals, history, experiences, and technical analyses. 

Also, We have discussed the share’s prospects and growth potential in detail.

This information will help you in your further investment. 

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