Get App
Last Updated : May 29, 2019 10:00 PM IST | Source:

Buy Bank of Baroda; target of Rs 170: ICICI Direct

ICICI Direct is bullish on Bank of Baroda has recommended buy rating on the stock with a target price of Rs 170 in its research report dated May 23, 2019.

Broker Research @moneycontrolcom
  • bselive
  • nselive
Todays L/H

ICICI Direct's research report on Bank of Baroda

Bank of Baroda (BoB) reported robust operating earnings led by strong NII of 26.6% YoY & healthy other income at 16% YoY. However, higher provision at Rs 5550 crore dented earnings with loss at Rs 991 crore. Credit growth came in at ~10% YoY at Rs 468819 crore, led by ~13% YoY growth in domestic advances; further driven by retail (24% YoY), corporate (~16% YoY) & agriculture (14% YoY).


Focus on building operational granularity and improvement in efficiency will enable the bank to pedal healthy growth. Balance sheet growth with focus on retail bodes well for risk adjusted returns and capital consumption. Recognition of majority of stressed assets and anticipated higher recovery to bolster earnings ahead. The management has ruled out any substantial impact due to merger; synergy from merger is seen to accrue at gradual pace. Rolling on to FY21E, we upgrade our target price to Rs 170 (earlier Rs 140), valuing the stock at 1.2x FY21E ABV post-merger. We maintain BUY.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.
First Published on May 29, 2019 10:00 pm
Follow us on
Available On
PCI DSS Compliant