Karur Vysya Bank Ltd.
ISIN: INE036D01028 • Market Cap: ₹32,018 Cr
The 5-Pillar Quality Audit for Karur Vysya Bank Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (32.0%), Return on Capital Employed (23.6%), and equity compounding (19.3%).
2. Financial Health & Solvency
Weight: 25%Assesses capital adequacy, provisioning coverage, and asset liability structure.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (11.4%) and 3Y PAT CAGR (19.6%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 11.67 vs PEG of 0.82 and Dividend Yield of 0.8%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 2.1%, backed by 59.1% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 23.6%)
Karur Vysya Bank Ltd. generates exceptional return on capital employed of 23.6%, reflecting pricing power and competitive moat.
Robust Equity Compounding (ROE: 19.3%)
Shareholder equity compounds at a healthy 19.3%, exceeding average Indian equity benchmarks.
High-Velocity Profit Compounding (3Y PAT CAGR: 19.6%)
Net earnings have compounded at 19.6% annualized, demonstrating operating leverage.
Attractive Valuation Margin (P/E: 11.67)
Trading at a P/E multiple of 11.67, the stock offers a favourable risk-reward entry for quality compounding.
Deep Institutional Sponsorship (59.1%)
Mutual funds, domestic DIIs, and foreign FIIs hold 59.1%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Financial Services)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Financial Services space.
Quantitative Strategy Eligibility
Checking KARURVYSYA against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 83/100 and clean gearing.
GARP / Value-Growth Blend
Provides balanced valuation margin with strong profitability scores.
Financial Services Sector Peer Comparison
Compare KARURVYSYA directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Karur Vysya Bank Ltd. (KARURVYSYA)Current | 83/100 | ₹32,018 Cr | 11.67 | 23.6% | N/A | — |
| HDFC Bank Ltd. (HDFCBANK) | 74/100 | ₹11.10 Lakh Cr | 14.05 | 12.8% | 1.01 | View |
| ICICI Bank Ltd. (ICICIBANK) | 76/100 | ₹10.06 Lakh Cr | 17.94 | 16.5% | 0.62 | View |
| State Bank of India (SBIN) | 71/100 | ₹9.66 Lakh Cr | 11.20 | 12.2% | 1.38 | View |
| Bajaj Finance Ltd. (BAJFINANCE) | 68/100 | ₹6.72 Lakh Cr | 33.07 | 13.9% | 3.86 | View |
| Life Insurance Corporation of India (LICI) | 87/100 | ₹5.22 Lakh Cr | 8.70 | 37.8% | 0.00 | View |
Frequently Asked Questions: Karur Vysya Bank Ltd.
Q:What is the 5-Pillar Fundamental Score for Karur Vysya Bank Ltd. (KARURVYSYA)?
Karur Vysya Bank Ltd. has a RupeeTools Fundamental Score of 83/100, placing it in the 'Exceptional Quality' category. Its pillar scores are: Profitability (92/100), Financial Health (70/100), Growth (79/100), Valuation (85/100), and Ownership Quality (82/100).
Q:Is KARURVYSYA fundamentally strong for long-term investment?
Yes, KARURVYSYA exhibits solid fundamental strength with a 83/100 score, driven by a return on equity of 19.3% and a debt-to-equity ratio of 0.19.
Q:Does KARURVYSYA pass the Coffee Can Investing filter?
Yes! KARURVYSYA satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does KARURVYSYA compare against other Financial Services peers?
Within India's Financial Services sector, KARURVYSYA trades at a P/E of 11.67 and generates an ROCE of 23.6%. Compare its 5-Pillar score of 83/100 against top sector peers like HDFC Bank Ltd. (74/100), ICICI Bank Ltd. (76/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.