Hold Bank of Baroda; target of Rs 56: Sharekhan
Sharekhan recommended Hold rating on Bank of Baroda with a target price of Rs 56 in its research report dated June 24, 2020.
June 25, 2020 / 02:44 PM IST
Sharekhan's research report on Bank of Baroda
Bank of Baroda (BOB) posted mixed Q4FY2020 results with improved asset quality and improvement in margins, but high moratorium book is a concern. Headline asset-quality performance improved, with credit cost declining to 1.82% in Q4FY2020 (was 3.88% in Q3FY2020) and fresh slippages for the quarter lower sequentially, but still elevated. We have cut our estimates for FY2021E and FY2022E, considering the risks to asset quality and uncertainty on growth due to COVID-19 and merger impact.
We maintain our Hold rating on the stock with a revised PT of Rs. 56.
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