Motilal Oswal is bullish on Bank of Baroda has recommended buy rating on the stock with a target price of Rs 65 in its research report dated June 24, 2020.
Motilal Oswal 's research report on Bank of Baroda
BOB reported mixed 4QFY20 operating performance as moderation in NII was supported by lower opex and higher treasury income. While elevated provisions led to PBT loss, higher tax reversal resulted in the bank reporting profits. Lower slippages were aided by asset classification benefit resulting in an improvement in asset quality ratios. However, higher moratorium book of 55% (as at end-May'20) should keep asset quality under pressure. We cut our EPS estimate for FY21/FY22E by 34%/5%, as we increase our credit cost projection and fine-tune our margin/growth estimates. Maintain Buy.
However, we maintain Buy with target price of INR65 (0.6x FY22E ABV) as current valuations appear reasonable.
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