Motilal Oswal Recommends Buying This Stock Which Surged 4% Today

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Motilal Oswal Recommends Buying This Stock Which Surged 4% Today
Credit: © Reuters.

By Malvika Gurung

Investing.com -- The shares of Government-owned Canara Bank (NS: CNBK ) spurred over 4% on October 27, after the public sector lender posted a better-than-expected earnings result for the quarter ending September.

The bank’s net profit jumped three times quarter-on-quarter to Rs 1,333 crore for the September quarter, from Rs 444 crore recorded in the same period last year.

The bank’s shares hit an intraday high of Rs 203.80 on NSE and were trading at Rs 201.85, up by 4.4% at 2:15 pm on Wednesday.

Backed by lower provisioning for bad loans, increased non-interest income, and higher cash recovery and operating profit recorded in the focused quarter, the public lender’s shares zoomed by over 4% on Wednesday.

Witnessing the performance and quarterly earnings report of Canara Bank, brokerage firm Motilal Oswal (NS: MOFS ) has advised investors to buy the stock, with an upside of 34% from the current market price to Rs 270 a share.

The firm has predicted this based on healthy earnings reported by the bank, in the September quarter, in conjunction with high treasury gains, improving fee income, and recovery from the DHFL resolution.

Furthermore, factors like increased recoveries and upgrades added to the stabilization of the bank’s asset quality, even though its NIM declined 2.72% QoQ and NII by 32 crores QoQ.

 

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  • nallathambi murugesan @nallathambi murugesan
    i'm interested but where should I learn these sir.,
    Like 3

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