Ahead of Lok Sabha election results, Ambareesh Baliga is bullish on this multibagger PSU stock

As India awaits the outcome of the ongoing Lok Sabha elections due on June 4, investors are on the lookout for buying opportunities to make the most of the current juncture on Dalal Street. With headline indices Sensex and Nifty50 staging seesaw moves within one per cent of their all-time highs scaled this week, many analysts have identified buying opportunities to play the election theme in the market.

Independent market analyst is bullish on Bank of Maharashtra (MAHABANK), a stock he recommends adding to the investment portfolio ahead of the upcoming election results.

How Bank of Maharashtra shares have moved in the recent past

In a year, the PSU stock has rewarded its investors with a return of more than 140 per cent and almost 51 per cent in 2024 alone so far, as against gains of around 11 per cent and two per cent in the Nifty Bank index—whose 12 constituents include State Bank of India (SBI), Punjab National Bank (PNB) and Bank of Baroda.

Why should you add Bank of Maharashtra shares to your portfolio now?

Baliga has highlighted a few key points behind his view on the PSU bank stock:

• Founded in 1935, Bank of Maharashtra is a well-established PSU bank with a vast network of over 2,500 branches
• The bank has demonstrated a steady upward trend in its performance over the past four years
• In Q4 FY24, the bank registered its highest-ever quarterly net profit, showcasing a remarkable 37 per cent growth on a year-on-year basis and exceeding analysts’ expectations
• The bank logged a 16 per cent increase in deposit bookings to approximately Rs 4,75,000 crore
• Bank of Maharashtra expanded its reach by adding around 88 new branches
• The bank exhibited a notable improvement in asset quality in the March quarter
• The expected EPS for FY26 is at around 8.5

Bank of Maharashtra Share Price Target

Baliga recommends buying BoM shares for a one-year target of Rs 85, which implies an upside of 20.4 per cent from its closing price on May 27.

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