Hold Bank of Baroda; target of Rs 164: Arihant Capital

Arihant Capital' research report on Bank of Baroda

Bank of Baroda reported Operating Profit of Rs. 2648 Cr in Q1 FY 2018 as against Rs. 2,669 Cr in corresponding quarter previous year, a de-growth of 0.8%. The bank reported net profit of Rs 203 crs for the quarter against profit of Rs 424 crs in corresponding quarter of previous year.

Outlook

At CMP of Rs 147 the stock is trading at P/ABV multiple of 1.5(x) on FY19E. We have valued stock on P/ABV(x) of 1.6(x) on its FY 19E ABV of Rs 101 per share and have arrived at fair value of Rs 164. We have HOLD rating on the stock.