Buy Bank of Maharashtra; target of Rs 49: Ajcon Global

Ajcon Global is bullish on Bank of Maharashtra has recommended buy rating on the stock with a target price of Rs 49 in its research report dated August 18, 2023.

Broker Research

August 24, 2023 / 13:22 IST

Buy

26 Aug, 2025 12:21

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Ajcon Global's report on Bank of Maharashtra

The Bank has delivered strong overall performance in Q1FY24 with strong credit growth, good NII growth, one the most efficient PSU Bank with Cost/Income ratio of 37.23 percent as on Q1FY24, impressive CASA share in total deposits which stood at 50.97 percent, further improvement in asset quality with Gross NPAs at 2.28 percent and Net NPAs at 0.25 percent (one of the lowest in the entire banking sector), well provided for Stressed Book (PCR further improved to 98.37 percent), strong capital adequacy, consistent improvement in RoE and RoA. We like the fact that the Management has achieved its previous guidance on major fronts and seems confident in achieving high credit growth and good recovery in FY24.

Outlook

We recommend a "Buy" with a target price of Rs. 49 (P/BV multiple of 2.25x at Q1FY24 Book Value of Rs. 21.78 per share). We believe the Bank deserves a premium in valuations considering its strong performance which can be compared to the well run Private Banks as well and due to the following factors.

For all recommendations report, click here