3 PSU Banking Stocks Hit New 52-Week High, Should You Buy, Sell, Or Hold?

Leading state-run banks have hit their new 52-week high in trade today amid strong credit growth, operating performance, and growing asset quality. These banking stocks are UCO Bank, Canara Bank, and Punjab National Bank.

According to Emkay Global, "Among PSBs, BOB, SBI, Union Bank and Canara Bank surprised positively on growth/earnings, while PNB disappointed due to higher provisions. PSBs in general, after a long time, have emerged strong in terms of growth/margin delivery, while NPAs are falling at a faster click." Check key takeaways below:

1. Punjab National Bank

The current market price of the leading public sector bank is Rs 47 apiece on BSE. The stock's 52-week high is Rs 48 apiece and 52-week low is Rs 28 apiece, respectively. The bank has a market capitalisation of Rs 51,916.94 crore.

The stock hit its new 52-week high today. It opened at Rs 47 apiece, touched its 52-week high at Rs 48 apiece, and day's low at Rs 47 apiece, respectively. It has gained 7% in 1-week and 16% in 1-month. In the last 1-year, the stock has gained 18%. The banking company was incorporated in 969.

Sharekhan has assigned hold rating for PNB with a target price of Rs 52 apiece and said PNB has "retained earning estimates."

2. Canara Bank

The current market price of Canara Bank is Rs 314 apiece with an intraday surge of 0.19%. its 52-week high is quoted at Rs 317 apiece and 52-week low is quoted at Rs 171 apiece, respectively. It has a market capitalisation of Rs 57,090 crore.

The PSU banking stock touched its new 52-week high today. The stock gained 16% in 1-month and 41% in 3-months. It has jumped 48% in last 1-year. Leading brokerage firm, Emkay Global in its last month's report dated October 20, 2022 assigned buy call to the stock with a target price of Rs 330.

According to the analyst, "We meaningfully raise our earnings estimates by 22-27% over FY23-25, factoring-in the higher credit growth/margin and lower tax rate. We now expect RoA/RoE to improve to 0.9%/17% by FY25E (without considering capital raise). We retain BUY on the stock, with revised TP of Rs330/share, based on 0.7x FY24E ABV and subsidiary/investment value of Rs23. Key risks: MD change in Dec-22, higher run-up in G-Sec yields hurting treasury performance, and macro dislocation leading to stress in the SME book."

3. UCO Bank

The current market price of UCO Bank is Rs 20 apiece with a 52-week high at Rs 21 apiece and 52-week low at Rs 10 apiece, respectively. The stock has a market capitalisation of Rs 24,485 crore.

The stock touched its new 52-week high today. In just 1-week, the stock gained 41% and in 1-month, it jumped 66%. The 3-months return is 80% and 1-year return is 54%. The stock has gained 10% intraday amid heavy volumes.

 

Disclaimer

The stocks have been picked from the brokerage report of Emkay Global and Sharekhan. Greynium Information Technologies, the Author, and the respective Brokerage Houses are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.