Stock Market

Shares worth less than Rs 110, can get 15% return in 3 months

Gladiator Stocks: ICICI Direct Research has given a Buy on BoB advisory on Bank of Baroda with a target price of Rs 120 for 3 months.

Gladiator Stocks: Amidst the ups and downs in the stock market, there are many such stocks, which have the power to give strong returns even in the short term. One of these banking stocks is Bank of Baroda. With the increase in economic activity, it is expected to accelerate further. Brokerage house ICICI Direct Research has put a Buy (Buy on BoB) advice on Bank of Baroda in its Gladiators stock category with a target price of Rs 120.

Bank of Baroda: 15% Return in 3 Months

The stock of Bank of Baroda (BoB) has given more than 127% returns in one year. On November 8, the share price stood at Rs 106.30. Brokerage house ICICI Direct Research has advised investors to invest on this stock for the next 3 months. Its target price has been kept at Rs 120. In this, the stop loss has been kept at Rs 94 and the buying range is Rs 102-105. With the current price, investors can get a return of about 15 percent in the next three months.

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Bank fundamentals strong

Brokerage house ICICI Direct says that Bank of Baroda is a leading PSU bank. The global loan book of the bank is around Rs 7.1 lakh crore. Its operating matrix is ​​better in public sector banks. It has 8192 branches and 11,637 ATMs across the country. The bank has a presence abroad. About 12.4 percent of the business is from abroad.

According to the report, the credit growth of the bank is expected to increase with the Kovid unlock and recovery in the economy. The CRAR (Capital to Risk Weightage Assets Ratio) ratio is expected to be 15.4 per cent. The focus of the bank is in the retail segment. The bank is offering competitive interest rates, especially in the home loan segment. Asset quality is also expected to improve with recovery. The brokerage firm expects RoA to be 0.6 per cent and RoE 0.9 per cent by FY23E. Whereas, during FY21-23E, earnings are expected to grow at a CAGR of 144 per cent.

(Disclaimer: The investment advice here is given by the brokerage house. This is not the views of dgmartpro Business. Markets are risky, so take expert opinion before investing.)

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