Largecap PSU Stock for 65% Gain in New Year: Anil Singhvi picks PSU bank for long term; know reasons and target prices
Largecap PSU Stock Pick for New Year 2025: As leading market indices, BSE Sensex and Nifty 50, staged a comeback in the new year, market guru and Zee Business managing editor Anil Singhvi has picked Bank of India as a largecap PSU stock to invest in for the long term and recommended 2 target prices.
Largecap PSU Stock Pick for New Year 2025: Leading market indices, BSE Sensex and Nifty 50, started off the new year on a rousing note, ending in the green on the first day and continuing in the same vein today (Thursday, January 2, 2024). While the BSE Sensex was nearly 600 points up at 79,102.23, the Nifty 50 was on the brink of touching the 24,000 mark by rising 184 points at the time of writing this article. As the share market seems to be making a spirited comeback after a roller-coaster ride in the Year 2024, Zee Business managing editor and market guru, Anil Singhvi has picked a largecap PSU bank, Bank of India, recommending investors to buy it. He has given 2 target prices for the stock.
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Anil Singhvi on Bank of India (CMP 103)
Why Anil Singhvi picked Bank of India?
Singhvi predicts that Year 2025 will be a good year for PSU banks.
Bank of India valuation
He said that Bank of India is available at attractive valuations, and a better environment is expected to lead to growth.
Anil Singhvi on Bank of India's PE ratio, book value
Considering investing in Bank of India as an opportunity, Singhvi said that Bank of India is trading at a PE of just 5.5 and a book value of 0.67.
Bank of India's dividend yield
Singhvi said that the bank has an attractive dividend yield of 2.5 per cent.
Crude, oil price impact on Bank of India
Singhvi said that a fall in crude oil and metal prices will reduce inflation.
Will Bank of India gain from interest rate cut?
He said that interest rate cuts will be a big positive for PSU banks, including Bank of India, as more consumers will flock to take more and higher loans.
Singhvi said that Bank of India's lower exposure to MFI will also benefit the PSU bank.
Will Bank of India stock rise ahead of Budget 2025?
Singhvi said that a pre-budget rally had been seen in PSU banks in the last 5 budgets, hinting at a possibility of an encore.
Anil Singhvi's target price for Bank of India
The Zee Business managing editor has given targets of Rs 145 and Rs 170 for an upside of over 65 per cent. Depending on the risk appetite, the investors can take their call.
He has given these targets for a duration of 12-18 months.
Bank of India share price
Bank of India closed trading on BSE on Wednesday at Rs 102.65.
Bank of India share 1-year performance against Nifty 50
Bank of India has slid 7.77 per cent in 1 month, 13.79 per cent in 6 months, and 11.19 per cent in 1 year.
On the other hand, the benchmark Nifty 50 has slid 1.31 per cent in 1 month and 0.69 per cent in 6 months. In contrast, its rise in the 1 year has been 10.58 per cent.