Time period given by analyst is one year when Bank of Baroda price can reach defined target.
Bank of Baroda, incorporated in the year 1911, is a banking company (having a market cap of Rs 42663.74 Crore).
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 21355.53 Crore, down -10.13 % from last quarter Total Income of Rs 23762.09 Crore and down -1.52 % from last year same quarter Total Income of Rs 21684.71 Crore. The bank reported net profit after tax of Rs 1227.36 Crore in latest quarter.
Investment Rationale
BOB reported a healthy earnings performance, supported by strong NII and sharp improvement in domestic NIMs. The margin expansion was supported by an improving asset mix, as retail growth held strong, while corporate loans declined 11% QoQ. The bank expects growth to pick up, led by retail segments, while corporate growth would see gradual recovery as the economic situation normalizes. The bank reported stable asset quality in a challenging quarter, with stable CE at 93%. Furthermore, SMA 1/2 declined to ~2.7% of loans. The brokerage increases earnings estimates by 47%/22% for FY22/FY23E and estimate RoA/RoE of 0.7%/10.3% by FY23E.
Promoter/FII Holdings
Promoters held 64 per cent stake in the company as of June 30, 2021, while FIIs held 7.9 per cent, DIIs 14.5 per cent and public and others 13.7 per cent.
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