Karnataka Bank a 2X opportunity in 3 years

 

• Low Starting Valuation: 0.6 time PBV
• Small size of just 7000 crore market value
• Decent ROE of 13% for last 3 years
• 45% Lake of Return

The Bank has undergone lot of changes. In next 3 years it should get rerated to at least 1 time book. Hence a double in 3 years.