Bank of Baroda Q4 review: Analysts give PSU lender a thumbs-up, see shares rising 30%
Bank of Baroda shares on Wednesday gave up initial gains to finish the day with a 0.3 per cent loss, still looking better than heavier cuts in headline indices.
Most analysts held positive views on Bank of Baroda after the country's second largest PSU lender by market value reported a strong set of quarterly numbers. Some of them see the stock rising by as much as 30 per cent on the back of a robust growth outlook.
On Wednesday, Bank of Baroda shares gave up initial gains to finish the day with a 0.3 per cent loss, still looking better than heavier cuts in headline indices.
What brokerages make of BoB's Q4 numbers
A majority of top brokerages are bullish on Bank of Baroda. Citi, HSBC and CLSA held a ‘buy’ rating each on the stock.
Brokerage | Rating | Target price |
CLSA | Buy | Rs 225 |
Morgan Stanley | Overweight | Rs 240 |
JPMorgan | Overweight | Rs 230 |
Citi | Buy | Rs 220 |
Macquarie | Neutral | Rs 180 |
HSBC | Buy | Rs 230 |
Motilal Oswal, upbeat on Bank of Baroda shares, reiterated a ‘buy' with a target price of Rs 240 apiece.
Bank of Baroda Q4 Results
Bank of Baroda reported a more than two-fold increase in net profit to Rs 4,775.3 crore for the quarter ended March 2023 compared with the corresponding period a year ago. Its net interest income (NII) came in at Rs 25,857 crore for the three-month period as against Rs 18,174 crore a year ago, according to a regulatory filing.
Its pre-provision operating profit (PPoP) grew 43 per cent, aided by higher other income and lower provisions, whereas loan growth stood at 5.6 per cent.
The lender's margin expanded by 16 basis points sequentially.
BoB shares: Past performance
Bank of Baroda shares have grown 82 per cent in value in the last one year, a period in which the Nifty headline index has risen 12 per cent.
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