South Indian Bank Upgraded to 'Hold' Rating, Shows Strong Growth and Attractive Valuations

South Indian Bank, a midcap private bank, has recently been upgraded to a 'Hold' rating by MarketsMOJO. This decision is based on the company's healthy long-term growth, with a net profit growth rate of 31.30% annually. Additionally, the bank has declared positive results for the last 11 consecutive quarters, with its operating cash flow at a high of Rs 7,075.21 Cr and interest earned at Rs 2,354.72 Cr. The bank also has a low gross NPA of 4.40%, indicating strong asset quality.
At a price to book value of 0.7 and a ROA of 1, South Indian Bank is currently trading at a very attractive valuation. It is also trading at a discount compared to its average historical valuations. However, the stock is currently in a mildly bearish range, with technical factors such as MACD and KST also showing a bearish trend.

Institutional investors, who have better resources and capabilities to analyze company fundamentals, have decreased their stake in the bank by -1.29% over the previous quarter. They currently hold 18.55% of the company. This could be a cause for concern for retail investors.

In the last year, South Indian Bank has underperformed the market, generating a return of only 4.74% compared to the market's return of 35.33%. This could be a factor to consider for investors before making any decisions regarding the stock. Overall, while the bank has shown strong growth and attractive valuations, it is currently facing some bearish trends and decreased interest from institutional investors.