Highest Dividend In 10-Yrs, 1:5 Stock Split Today: Buy Multibagger PSU Bank Stock, TP Rs 650: Motilal Oswal

Leading brokerage firm Motilal Oswal has recommended buy call to public sector lender Canara Bank with target price of Rs 650 apiece. Current market price of PSU Canara Bank shares on BSE is Rs 572.80 apiece. If you buy Canara Bank shares today at last trading price of Rs 572.80 apiece, you can get potential return of 13.48%. Canara Bank shares offered investors return of 111% in last 1-year.

Today Canara Bank approved sub-division/stock split of shares in the proportion of 1:5, its maiden stock split in history. It will imply 1 equity share of FV of Rs 10 will soon be sub-divided into 5 equity shares of Rs 2 each. Canara Bank also announced highest dividend in last 10 years in 2023. Check details below:

What Is Stock Split? When a company announces stock split, it leads to increased number of shares of that company with the market cap remaining same. The current shares split with the underlying value remaining similar. When the number of shares rise, the price per share declines. Companies go for stock split to make the share more affordable for investors who may find it difficult to buy the shares of that company due to high prices.

Canara Bank Announces 1st Stock Split In Its History: According to the regulatory filing of the company 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.

Canara Bank Shares Performance & Return: The 52-week high price of leading PSB Canara Bank stock on BSE is quoted Rs 598.75 apiece and 52-week low price is quoted Rs 268.85 apiece, respectively. Canara Bank shares offered investors return of 29% year-to-date (YTD), gained 47% in last 1-year, and rallied multibagger returns of 111% in last 1-year. Canara Bank stock rose 264% in last 3-years (its maximum return in last 3-years).

Highest Dividend In Last 10-Years In 2023: Canara Bank declared 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.
No Bonus Till Date: The PSB so far did not announce any bonus share in its history.

Canara Bank Financials: The renowned PSB on January 24, 2024 declared its net profit at Rs 3,656 crore for the October to December quarter, up 26.87% as compared to Rs 2881.52 crore announced in the corresponding quarter of last fiscal. The PSB'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. 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.