PSU lender, Canara Bank's share price has been in focus this month for its first-ever stock split in the ratio of 1:5. The stock price is currently below Rs 120, but has seen a significant surge after turning ex-split. The next big key trigger is its dividend payout of Rs 16.10 per share. However, brokerages are predicting short-term selloffs.
This week, Canara Bank will also be in focus due to its addition on many indices of BSE. Canara Bank has been included on indexes like BSE 100, Sensex Next 50 and BSE Bankex. This is part of BSE's semi-annual rejigs and will come into effect from June 24, 2024.
Canara Bank Share Price:
Last week, on Friday, Canara Bank's share price ended at Rs 117.15 apiece, down by marginally on BSE with a market cap of Rs 1,06,262.68 crore. The stock was near its 52-week high of Rs 126.53 apiece, while trading nearly doubled the price of its 52-week low of Rs 58.29 apiece.
Canara Bank's weekly performance is up by 2%, however, in a month, the stock tumbled by 6%. YTD, the stock is up 32%. These gains are adjusted to the stock split ratio.
Canara Bank Dividend:
The PSU will pay dividends of Rs. 16.10 per equity share(i.e. 161% of face value of Rs.10/-) each to the shareholders for the year 2023-24.
Post stock split, Canara Bank in its regulatory filing said, "Shares of our bank has undergone subdivision at the ratio of 1:5 for which the record date was 15.05.2024. The new face value is Rs.2/-. Accordingly, we wish to inform you that the dividend of Rs. 3.22 per equity share (i.e 161% of the face value of Rs. 2/-) each to the shareholders for the year 2023-24, will be paid subject to the approval of shareholders at the ensuing Annual General Meeting of the Bank."
As per BSE data, the record date for determining eligible shareholders for the dividend payout has been fixed on June 17, 2024.
Canara Bank Stock Split:
On May 15, Canara Bank stocks sub-divided in the ratio of 1:5. Simply put, 1 existing equity share of Canara Bank has split into 5 shares. Notably, the share capital reserves will remain the same. The face value of Rs 10 will be split into Rs 2 each.
The next big reward by Canara Bank is its final dividend payout for which it scheduled a record date in June month.
Canara Bank Share Price BUY/SELL?
Brokerage Kotak Institutional Equities has given a 'REDUCE' call on Canara Bank for a target price of Rs 106.
Meanwhile, the consensus recommendation from 15 analysts for Canara Bank is HOLD, as per Trendlyne data. EPS is expected to grow by 8.9% in FY25. The 1-year average target price is at Rs 114, hinting at a 3% downside.
After its Q4 results, Motilal Oswal said, Canara Bank's 4QFY24 PAT: INR37.6b, driven by higher other income, while NII grew 11.2% YoY, with margins improving 4bp QoQ to 3.07%. Additionally, Loan book and deposits grew 12.2% and 11.3% YoY respectively, and GNPA/NNPA ratios improved 16bp/5bp QoQ to 4.23%/1.27%. Further, the bank guides NIMs to be at 2.95-3.0% in FY25.
Disclaimer: The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.
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