1:5 Split, Rs 16.10 Dividend: Multibagger PSB Revises Dividend Per Share, Buy For TP Rs 135

Leading public sector bank Canara Bank declared final dividend of Rs 16.10 per share on May 8, 2024. The dividend has been revised to Rs 3.22 per share of the face value of Rs 2 each due to post effective of stock split/sub-division of share on June 15, 2024, according to Capital Market. Current market price of Canara Bank share on BSE is Rs 118.05 per share with intraday gain of 2.43%.

Canara Bank shares offered return of 180% in last 2-years 33% year-to-date. Earlier, Canara Bank shares traded ex-split in the ratio of 1:5 on May 15, 2024. The bank has a market capitalisation of Rs 1,07,079.04 crore. Check key details below:

Canara Bank Gives Update On Subsidiary: According to the BSE filing of Canara Bank dated May 31, 2024, "Canara Bank has accorded approval for initiating the process of diluting 14.50% stake of the Bank in its subsidiary M/s Canara HSBC Life Insurance Company Ltd by listing the Company in Stock Exchanges (BSE/NSE) through Initial Public Offer (IPO). The same shall be subject to approval of Reserve Bank of India and Department of Financial Services, Government of India. The size of the issue, opportune time and modalities of issue will be decided in due course. The bank will update the exchanges of all material developments with regard to the same, as and when required, as per applicable regulations."

Canara Bank Dividend: As per the regulatory filing of Canara Bank dated May 8, "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 the approval of Shareholders at the ensuing Annual General Meeting of the Bank."

Canara Bank Sets Record Date For Dividend: The bank has fixed June 17 as the record date for dividend. According to the BSE filing, "the dividend will be paid to the shareholders within 30 days from the date of declaration at the Annual General Meeting (AGM)."

Canara Bank Share Performance: The 52-week high price of Canara Bank share on BSE is Rs 129.35 per share (as on 04/06/2024) and 52-week low price is Rs 58.29 per share (as on 26/06/2023), respectively. Canara Bank has a PE of 1.47 and ROE of 16.74. Canara Bank shares declined marginally by 1.58% in last 3-months, soared 33% year-to-date, jumped 89% in last 1-year, and rose 266% in last 3-years.

Canara Bank Q4: The public sector lender announced its net profit at Rs 3757 crore for Jan-March quarter of 2023-24, up 18.33% YoY amid steady surge in interest income and fall in provisions. Sequentially, the PSU's profit rallied by 2.76% from Rs 3,656 crore for the quarter ended December (Q3) of FY 2024.

Should You Buy Canara Bank Shares? LKP Securities has assigned buy call to Canara Bank share with target price of Rs 135 per share and maintain stop loss at 125 per share. According to the analyst, "the stock has given a consolidation breakout on daily chart, suggesting a rise in optimism. It has a potential to hit an upside target price of Rs 135 with support at Rs 125."

Disclaimer: The stock has been picked from the brokerage report of LKP Securities. 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.