Buy Canara Bank; target Rs 254: Firstcall Research
Brokerage house Firstcall Research is bullish on Canara Bank and has recommended buy rating on the stock with a target price of Rs 254 in its September 24, 2013 research report.
October 01, 2013 / 14:14 IST
Firstcall Research report on Canara Bank
"Canara Bank has achieved a net income of Rs. 92965.80 million for the 1st quarter of the current year 2013-14 as against Rs. 84728.60 millions in the corresponding quarter of the previous year. The bank has reported a net profit of Rs. 7920.70 million against Rs. 7752.40 million reported respectively in the corresponding quarter of the previous year. The bank has reported an EPS of Rs. 17.88 for the 1st quarter as against an EPS of Rs. 17.50 in the corresponding quarter of the previous year."Outlook and Conclusion: "At the current market price of Rs.227.00, the stock P/E ratio is at 3.67 x FY14E and 3.60 x FY15E respectively. Earning per share (EPS) of the company for the earnings for FY14E and FY14E is seen at Rs. 61.82 and Rs.63.06 respectively. Net Sales and NII of the company are expected to grow at a CAGR of 9 percent and 6 percent over 2012 to 2015E respectively. Debt-Equity ratio is expected at 14.83 x for FY14E and 14.68 x for FY15E. Price to Book Value of the stock is expected to be at 0.36 x and 0.33 x for FY14E and FY15E respectively. We expect that the company will keep its growth story in the coming quarters also. We recommend 'BUY' in this particular scrip with a target price of Rs 254 for Medium to Long term investment," says Firstcall Research report.Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. 
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