Canara Bank, incorporated in the year 1906, is a banking company (having a market cap of Rs 28246.01 Crore).
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 23288.74 Crore, down -2.04 % from last quarter Total Income of Rs 23774.15 Crore and up 2.53 % from last year same quarter Total Income of Rs 22713.92 Crore. The bank reported net profit after tax of Rs 1234.53 Crore in latest quarter.
Investment Rationale
The brokerage believes that merger-related concerns are largely behind and the bank should report a gradual improvement in its RoA/RoE to 0.4-0.5%/10-11% by FY23E-24E, led by better growth and moderate LLP. The brokerage retains Buy with a TP of Rs185, valuing the core bank at 0.6x Sep’23E ABV and subs at Rs22 per share.
Key risks to call/estimates: Higher-than-expected NPA formation in retail/SME, a slower growth trajectory and a sharp rise in G-Sec yields leading to lower treasury gains.
Promoter/FII Holdings
Promoters held 69.3 per cent stake in the company as of Dec 30, 2020, while FIIs held 4.4 per cent, DIIs 10.8 per cent and public and others 15.2 per cent.
(Disclaimer: Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.
