Buy Canara Bank, target price Rs 410: Motilal Oswal Financial Services

The brokerage estimates an RoA/RoE of 1.1%/17.5% for FY25.

By ETMarkets.com | Updated: Jan 24, 2023, 01.01 PM IST

Promoters held 62.93 per cent stake in the company as of 31-Dec-2022, while FIIs owned 8.74 per cent, DIIs 16.33 per cent.

Motilal Oswal Financial Services has buy call on Canara Bank with a target price of Rs 410. The current market price of Canara Bank is Rs 324.1.

Canara Bank, incorporated in the year 1906, is a banking company (having a market cap of Rs 58913.88 Crore).

Canara Bank key Products/Revenue Segments include Interest & Discount on Advances & Bills, Income From Investment, Interest On Balances with RBI and Other Inter-Bank Funds and Interest for the year ending 31-Mar-2022.

Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 27358.37 Crore, up 15.25 % from last quarter Total Income of Rs 23739.27 Crore and up 14.59 % from last year same quarter Total Income of Rs 23876 Crore. The bank has reported net profit after tax of Rs 2705.55 Crore in latest quarter.

Investment Rationale
The brokerage raises its PAT estimates by 5% each for FY23/24 and 4% for FY25 to account for higher NII and lower provisions. Further, it estimates an RoA/RoE of 1.1%/17.5% for FY25.

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