Buy Bank of Baroda, target price Rs 140: Emkay Global

Emkay Global has buy call on Bank of Baroda with a target price of Rs 140. The current market price of Bank of Baroda is Rs 121.7. 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 62961.33 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 30-06-2022, the company reported a Consolidated Total Income of Rs 21576.76 Crore, down -3.98 % from last quarter Total Income of Rs 22470.46 Crore and up 1.04 % from last year same quarter Total Income of Rs 21355.53 Crore. The bank reported net profit after tax of Rs 1939.56 Crore in latest quarter.

Investment Rationale
BoB remains well-capitalized among large PSBs, with CET-1 ratio >11% post QIP and, thus, does not pose any risk of dilution. It has revised our earnings estimates for FY24/25E by 1%/3% and rollover TP to 0.7x June’24E ABV, leading to revision in TP to Rs140 (up from Rs130).

Promoter/FII Holdings
Promoters held 63.97 per cent stake in the company as of 30-Jun-2022, while FIIs owned 8.23 per cent, DIIs 16.85 per cent.