Buy Bank of Baroda; target of Rs 290: Motilal Oswal

Motilal Oswal is bullish on Bank of Baroda recommended buy rating on the stock with a target price of Rs 290 in its research report dated January 31, 2024.

Broker Research

February 07, 2024 / 19:04 IST

Buy

26 Aug, 2025 12:21

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Motilal Oswal's research report on Bank of Baroda

Bank of Baroda (BOB) reported 3QFY24 PAT of INR45.8b, up 19% YoY (9% beat), driven by lower provisions and a 3bp QoQ expansion in margins. Other income declined 21% YoY to INR28.1b, affected by weak treasury income. Total income, thus, declined 3% YoY (6% miss). Business growth was healthy, with loans growing 15% YoY (2.6% QoQ) and deposits increasing 8% YoY (flat QoQ). The CD ratio, thus, increased sharply to 82.2%, though LCR remained comfortable at 133%. Slippages improved to 0.95%. GNPA/NNPA ratios, thus, improved by 24bp/6bp QoQ to 3.1%/0.7%. PCR stood stable at 77.7%. We increase our FY24 earnings estimate by 4.4% and estimate FY25 RoA/RoE of 1.2%/17.8%. We reiterate our BUY rating on the stock.

Outlook

We increase our FY24E EPS by 4.4% and estimate FY25 RoA/RoE of 1.2%/17.8%. We value the stock at INR290 (1.1x Sep’25E BV) and reiterate our BUY rating on the stock.

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