After Hitting a Multi-year High, This Large Cap is Reaching Fair Value!

  • Stock Market Analysis

The markets are not looking in a mood to stop anytime soon. Nifty Bank has already rallied 2,200 points in a mere two trading sessions this week, while Nifty 50 is up almost 590 points in the same period. Many banks have contributed to the sky-high levels of Nifty Bank and one of them is Canara Bank (NS: CNBK ).

The bank has a market capitalization of INR 77,454 crore and trades at a TTM P/E ratio of a mere 5.82. However, the stock has rallied 7.8% this month as it hit a new 52-week high of INR 437.4 which raises a question of how far it can rally.

Image Source: InvestingPro+

When turning to the DIY investing tool - InvestingPro+, one can come to the conclusion that the stock is still some 10% away from its fair value, which is coming at INR 477.

Even the lowest intrinsic value as per the P/B Multiples model is INR 456, which clearly states that the stock was undervalued for a long time and now gradually filling the gap.

Image Source: InvestingPro+

What’s even more beneficial for short-term traders is the momentum ranking. As can be seen from the image above, the stock has fairly consistently scored a rank above 3 (from 5) and over 4 in many parameters. The overall price momentum score is 4 which makes it a good candidate for long positions.

-----------------------------------------------------------------

X (formerly, Twitter) - aayushxkhanna

CYBER MONDAY SALE: You can avail InvestingPro+ at a massive 60% discount and by using the coupon code PROC324 get an extra 10% discount over and above the ongoing promotional price for the Bi-yearly plan only. Click on the image below to access the link

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100
  • namami ghosh @namami ghosh
    badiya analysis, boss 🙏
    Like 1
  • HITESH DAVE @HITESH DAVE
    great analysis boss
    Like 1
  • Mannish kakka @Mannish kakka
    great analysis 👍
    Like 1
    • Aayush Khanna @Aayush Khanna
      @Mannish kakka Thanks, Mannish.
      Like 0
    • Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

      Error: File type not supported

      Drop an image here or

      100

Related Articles