Bank Of Baroda share price: Buy Bank of Baroda, target price Rs 147: LKP Securities

has buy call on Bank of Baroda with a target price of Rs 147. The current market price of is Rs 116.75. Time period given by analyst is one year when Bank of Baroda price can reach defined target.

Bank of Baroda, incorporated in the year 1911, is a banking company (having a market cap of Rs 60142.94 Crore).

Bank of Baroda key Products/Revenue Segments include Interest & Discount on Advances & Bills, Income From Investment, Interest and Interest On Balances with RBI and Other Inter-Bank Funds for the year ending 31-Mar-2021.

Financials

For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 21576.76 Crore, down -3.98 % from last quarter Total Income of Rs 22470.46 Crore and up 1.04 % from last year same quarter Total Income of Rs 21355.53 Crore. The bank reported net profit after tax of Rs 1939.56 Crore in latest quarter.

Investment Rationale
The brokerage expects the bank to post a ROA/ROE of 0.8%/11.5% by FY24E led by steady balance sheet growth along with higher PCR and improving asset quality. It values the standalone bank with PBV of 0.8xFY24E Adj. BVPS of ₹183 to reach a price target of ₹147 (revised from ₹128). It recommends BUY rating with potential upside of 26%.

Promoter/FII Holdings
Promoters held 63.97 per cent stake in the company as of 30-Jun-2022, while FIIs owned 8.23 per cent, DIIs 16.85 per cent.