Looking at the mutual funds’ buying in Q2 FY24, two banks that remained at the top of their list were both surprising names and showed their conviction in smaller banks.

CSB Bank Limited

CSB Bank Ltd (NS:CSBB) hardly makes it to the list of any investors mainly because of its relatively new listing (in December 2019) and has a market cap of only INR 6,813 crore. Interestingly, such a small bank topped the list of MFs’ interest in the banking space in Q2 FY24 as they ramped up their stake by 2.42% in that quarter.

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The stock has cheered investors with a 74.4% return in the last one month, beating the banking index hands down. However, those looking to invest at this stage might be better off waiting for a dip, as its average intrinsic value based on 3 InvestingPro+ financial models is INR 408, leaving a little upside of 1.3%. On the charts, the level of INR 360 seems to be a good support zone.

Jammu and Kashmir Bank Limited

Jammu and Kashmir Bank Ltd. (NS:JKBK) is a slightly bigger bank with a market capitalization of INR 11,774 crore and trades at a TTM P/E ratio of 7.86. The bank’s turnaround numbers could be one of the reasons why MFs are inclined towards it, ramping their interest by 2.23% in the September 2023 quarter to 3.15%, the highest in over a year.

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The bank which posted a loss of INR 1183.37 crore in FY20 is not sitting at a profit of INR 1,497.08 crore (TTM). Despite a massive run-up of 85% in the last one year, the stock still holds the potential to further scale by 15.1% to INR 131. The nearest support on the chart is INR 96, which is where left-out investors might try to participate in the rally.


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2023-12-08T11:32:26Z dg43tfdfdgfd