With Bank of Baroda’s asset quality being strong and other fundamentals getting better, investing in its stock can be profitable. According to a foreign brokerage firm, it is likely to increase in the coming days.
Even though there may be uncertainty in the stock market due to the Corona period, but in view of the state of improvement, investors have confidence in it. Government financial institution Bank of Baroda can be a better option for those earning through the stock market. According to the report of global brokerage firm CLSA, this stock can give returns of up to 60 percent within 6 months to 1 year.
Bank of Baroda may have incurred a loss of Rs 1,046.5 crore in the quarterly results of the past days, but the brokerage firm believes that the bank has enough capital. Apart from this, the retail asset quality of the bank has strengthened during the Corona period, so investing in it can prove beneficial in the coming days.
Bank’s changed strategy will increase profits
According to the CLSA report, the current valuation of Bank of Baroda is 0.55 times. The bank is changing its corporate credit cycle. Along with this, a new strategy is being made to raise capital to meet the deficit. This will help the bank to improve the situation. This will benefit the bank’s stock. The earnings of the bank are expected to increase by 4 to 5 percent in the coming days. The brokerage firm has set a price target of Rs 130 for the share of BoB.
Benefit from better performance in BPS slippage and NII
Bank of Baroda Limited recently announced the results for the quarter ended March 2021. In this, the bank suffered a loss of Rs 1,046.5 crore, while in the same quarter in 2020, the bank had a profit of Rs 506.59 crore. Apart from this, the tax cost for the March 2021 quarter was Rs 3,726.07 crore as against Rs 2,229.85 crore in the March 2020 quarter. However, BoB stock is expected to gain on the back of 50 bps slippage in Q4 results and strong adjusted NII performance.
Disclaimer This news has been written on the basis of the report of brokerage firm CLSA. We do not make any claim regarding this stock. Therefore, before investing in this stock, you must take suggestions from the market experts yourself or your broking firm.
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