Buy Bank of Baroda; target of Rs 275: Sharekhan

Sharekhan's research report on Bank of Baroda

Earnings beat expectations driven by NIMs and treasury gains. Bank eyes NIMs at 2.85-3% in FY26E. Asset quality was stable, but it saw one international account slip, leading to slightly higher NPAs q-o-q. Thus, core credit cost was slightly higher but remained below the long-term average. Bank is reasonably confident of maintaining a ~1% RoA for the next couple of quarters.

Outlook

Stock trades at 0.8x/0.7x its FY2026E/FY2027E ABV estimates. We maintain Buy rating with a revised PT of Rs. 275.

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