Buy Bank of Baroda, target price Rs 128: LKP Securities

LKP Securities has buy call on Bank of Baroda with a target price of Rs 128. The current market price of Bank of Baroda is Rs 100.15. Time period given by analyst is one year when Bank of Baroda price can reach defined target.

Bank of Baroda, incorporated in the year 1911, is a banking company (having a market cap of Rs 51636.05 Crore).

Bank of Baroda key Products/Revenue Segments include Interest & Discount on Advances & Bills, Income From Investment, Interest and Interest On Balances with RBI and Other Inter-Bank Funds for the year ending 31-Mar-2021.



Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 22470.46 Crore, up 1.80 % from last quarter Total Income of Rs 22072.99 Crore and down -5.44 % from last year same quarter Total Income of Rs 23762.09 Crore. The bank reported net profit after tax of Rs 2073.63 Crore in latest quarter.

Investment Rationale
The brokerage expects the bank to post a ROA/ROE of 0.7%/10.8% by FY23E led by steady balance sheet growth along with higher PCR and improving asset quality. It values the standalone bank with PBV of 0.8xFY23E Adj. BVPS of ₹160 to reach a price target of ₹128 (revised from ₹136). It recommends BUY with potential upside of 28%.

Promoter/FII Holdings
Promoters held 63.97 per cent stake in the company as of 31-Mar-2022, while FIIs owned 9.14 per cent, DIIs 15.07 per cent.