BUY CUB cmp 144.50, target min 166 then 180/200 SL- 129CUB correction is completed both price-wise and time-wise. From this month it has strong potential upside with minimum target of 166 around, then 180 and 200 levels. 2nd target of 180 and 3rd target 200 can come in next month or next to next month but 166 is almost confirmed. This view will fail if it close on or below 130 levels. so the risk is very less from current levels and the rewards are very high with short term time frame. Fundamentally, the fair value of the stock near to 175-180 levels going with earnings of fy25-26 and with fy24, its still stand to value near 155-160 levels so there is a tremendous potential in value unlocking. NIMs of the bank likely to improve given the interest rate downtrend to start and the cost of borrowing will reduce resulting in improvement of margins. NPAs recovery is already going since last 3-4 quarters and it has reduced. Credit growth is expected to grow given the digitalisation in approval process, ties up with NBFC and expanding to new areas of credit growth. Branches increased last year, however still concentrated in TamilNadu, so any improvement in that state directly impacts cub. Recently the key person in higher management has changed with strong banking experience in big banks and mid size bank as well. Expect the strong turnaround for cub in coming quarters, so 200 is just the levels but it wont be surprising even it cross new lifetime highs when numbers are out. Multiple brokerage house knew this and gave a buy call, it is just a matter of time that Investor's patience soon going to be rewarded. Good luck.
