Buy 118-Yrs Old PSU Bank Stock After 1:5 Stock Split, TP Rs 700-750: Brokerages Bullish

Brokerage firm Motilal Oswal has assigned buy rating to leading public sector lender Canara Bank shares with target price of Rs 650 per share. Current market price of Canara Bank stock on BSE is Rs 597.85 apiece with intraday fall of 0.32%. Canara Bank shares gained 34.97% year-to-date and soared 198% in last 2-years. Board of Directors of the bank stock recently gave their nod to 1:5 stock split thus splitting each share into 5 new shares to boost liquidity and making them more affordable
and accessible.

Canara Bank shares have already witnessed significant rally of 119.56% from the 52-week low price of Rs 272.30, if the current share price is taken into consideration. Check details below:

What Is Stock Split? When stock split takes place, it will lead to increased number of shares of that company with market cap remaining similar. The current shares split with the underlying value remaining similar. When the number of shares sure, the price per share comes down. Companies opt for stock split to make the share more affordable for investors.

Canara Bank Stock Split: As per the BSE filing of Canara Bank dated February 26, 2024, "This is to inform the Stock Exchanges that the Board of Directors of the Bank at its meeting held today, i.e Monday, 26th February 2024, inter alia, approved Sub-division/ split of every one equity share of face value of Rs. 10/- (Rupees ten only) each, fully paid-up, into 5 (five) equity shares of face value of Rs. 2 /- (Rupee two only) each, fully paid-up, subject to approval of the Reserve Bank of India.

Prabhudas Lilladher Recommends Buy: Apart from Motilal Oswal, brokerage firm Prabhudas Lilladher has also assigned buy call to Canara Bank shares. The analyst said, "Canara Bank has witnessed a short correction as from the peak of Rs 597 it made a low near Rs 538 levels and has indicated a bounce back with a bullish candle pattern in the daily chart and with support of 20 DMA, now trading above the previous peak level. The RSI on the monthly chart is now above 80, indicating an overbought zone. Some profit booking or consolidation can't be ruled out at this level. With a strict stop loss of Rs 550 levels, one can buy with a positional view in this counter for an upside target of 700-750 levels."

Canara Bank Shares Performance & Return: The 52-week high price of Canara Bank shares is Rs 606.00 apiece and 52-week low price is quoted Rs 272.30 per share, respectively. Canara Bank shares surged 35% year-to-date (YTD), rallied 77% in last 6-months, and gave returns of 97% in last 1-year. Canara Bank stock witnessed rally of 274% in last 3-years, highest in 3-years. Canara Bank has a market capitalisation of Rs 1,08,457.78 crore.

Canara Bank Dividend In 2023: Canara Bank announced its highest dividend of Rs 12/share in last 10-years in 2023 and its ex-dividend date was June 14, 2023. Before that, Canara Bank recommended Rs 13/share dividend in 2013.

Canara Bank Financials: The PSU on January 24, 2024 announced its net profit at Rs 3,656 crore for the October to December quarter, up 26.87% as against Rs 2881.52 crore announced in the corresponding quarter of last fiscal. Canara's non-performing asset (NPA) arrived at 4.39%, down from 5.89% declared in the same quarter of last fiscal. Net NPA of Canara declared at 1.32%. Its net interest income announced at Rs 9,417 crore, up 9.50%. Net Interest Margin declared at 3.02% grew by 9 bps.

Canara's global business jumped by 9.87% YoY to Rs 22,13,360 crore as of December 2023. Global deposits declared at Rs 12,62,930 crore and global advance (gross) announced at Rs 9,50,430 crore, respectively.

Disclaimer: The stock has been picked from the brokerage report of Motilal Oswal and Prabhudas Lilladher. Greynium Information Technologies, the Author, and the respective Brokerage House 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.