1:5 Stock Split, Rs 12/Share Dividend: Buy 118-Yrs Old PSB, TP Rs 650: 2 Brokerages Recommend

Leading brokerage firm Motilal Oswal has recommended buy call to renowned 118-year-old public sector lender Canara Bank share with target price of Rs 650 apiece. Not only Motilal Oswal, analyst Prabhudas Lilladher too suggested buy call for Canara Bank share with target price of Rs 700-750 per share and keep stop loss at Rs 550 levels. Canara Bank shares witnessed rally of 111% in last 1-year and gained 298% in last 3-years. Check details below:

Canara Bank Share Performance & Return: The 52-week high price of Canara Bank shares is Rs 606.00 apiece and 52-week low price is quoted Rs 274.05 per share, respectively. Canara Bank shares surged 55% in last 6-months, soared 111% in last 1-year, and offered rally of 154%. The PSB has a market capitalisation of Rs 1,05,419.11 crore.

Canara Bank Stock Split: The PSU approved its maiden stock split on February 26, 2024 in the ratio of 1:5 implying 1 share split into 5 new shares. 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 Assigns Buy Call: Brokerage firm Prabhudas Lilladher recommended buy rating to Canara Bank shares. Prabhudas Lilladher said, "Canara Bank 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 Dividend In 2023: Canara Bank announced its highest dividend of Rs 12/share in last 10-years in 2023 and fixed the ex-dividend date as une 14, 2023. Eatlier, Canara Bank declared Rs 13/share dividend in 2013.

Canara Bank Financials: The PSU on January 24, 2024 announced a rally of 26.87% in its net profit to Rs 3,656 crore for the October to December quarter as against Rs 21881.52 crore declared in the corresponding quarter of preceding fiscal. Canara Bank's non-performing asset (NPA) declared at 4.39%, down from 5.89% announced in similar quarter of last year. Net NPA of Canara announced at 1.32%. Canara's net interest income declared at Rs 9,417 crore, up 9.50%. Net Interest Margin announced at 3.02%, up by 9 bps. The PSU's global business rallied 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 & 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.