After splitting for the first time ever in the ratio of 1:5, PSU lender, Canara Bank is now set to reward investors with dividend payout to the tune of Rs 16.10 per share for FY24. Canara Bank shares which once traded around Rs 566 apiece level, have split into five smaller shares and is currently below Rs 115 per share. The highest target price of Canara Bank is Rs 660 with majority of brokerages recommending BUY on the stock.
Canara Bank Share Price:
Currently, Canara Bank shares are at Rs 113.80 apiece, flat on Friday with market cap of Rs 1,03,224.01 crore. Adjusted to its stock split ratio, Canara Bank stock has gained by a whopping 29% on BSE. All-time gains of Canara Bank is 1,062.41%.
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 record date in June month.
In generic terms, share splits mean that listed companies can split their existing shares into a ratio decided by them for a host of reasons. These could be done to improve liquidity, lessen the value of the stock, make it cheaper or simply attract new buying from both existing and new investors.
Canara Bank Dividend:
The bank has recommended dividend 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, subject to approval of shareholders at the ensuing Annual General Meeting of the Bank.
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 face value of Rs. 2/-) each to the shareholders for the year 2023-24, will be paid subject to 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.
BUY Canara Bank Share Price:
Brokerage Antique Stock Broking has recommended BUY on Canara Bank for a target price of Rs 660 which is the highest as of now in the long-term.
Antique predicts Canara Bank's net profit to rise to Rs 157.4 billion in FY25E, and Rs 176.4 billion in FY26E. Also, the brokerage expects return on equity on the bank to rise to 18.6%, while price to book value ratio is estimated to touch 1.1x by FY25 and 1x by FY26.
The brokerage also expects net NPA ratio of the bank to come at 1% by FY25, and further drop to 0.9% by FY26.
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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