Analysts Are Bullish on Bank of Baroda After Q1 FY22 Results

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Analysts Are Bullish on Bank of Baroda After Q1 FY22 Results

By Aditya Raghunath

Investing.com -- Public sector bank, Bank of Baroda Ltd (NS: BOB ), is on the radar of several brokerages. The lender reported a net profit at Rs 1,209 crore as its net interest income (NII) grew 15.8% to Rs 7,892 crore.

Prabhudas Lilladher said, “Overall stressed book (NPAs + Restructured + SMA) is still higher at 8.5% but given PCR at 67% (83% incl w.offs), higher provisioning than requirement & gradually lowering slippages should help lower credit cost rate. Relatively better capital ratios & improving operating performance, although bank business outlook is still uncertain & consolidating its loan book which will have to be improved. Retain BUY with revised PT of Rs 105.” NPAs stand for non-performing assets.

Motilal Oswal (NS: MOFS ) said, “BOB reported a strong earnings performance, supported by a healthy core operating performance, despite sluggish business trends. Domestic NIM [net interest margin] improved sharply by 39bp QoQ to 3.12%. The bank expects growth to pick up, led by retail segments, while corporate growth would see gradual recovery as the economic situation normalizes. We increase our earnings estimates by 47%/22% for FY22/FY23E and estimate RoA/RoE of 0.7%/10.3% by FY23E. Therefore, we upgrade our rating to BUY.” The target price for Bank of Baroda is Rs 100, up from its earlier target of Rs 85.

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100
  • Hitesh Gala @Hitesh Gala
    It cld easilly double in a year
    Like 0
  • Kannan Submani @Kannan Submani
    With current PE Ratio trading 50% below the average pe ratio, the stock looks very attractive at current levels
    Like 0

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