Long on Canara Bank (CMP - Rs.240)

2022年8月28日

Canara Bank reported healthy earnings led by robust NII/Loan growth and controlled provisions. Margin expanded 6bp QoQ aided by improvement in CD ratio. The bank further carried 25% provisions on its SREI exposure. The management is confident of sustaining growth in advances led by a broad-based performance across all segments and has a strong focus on bringing down the GNPA and NNPA ratios from current levels. CBK reported a steady operating performance supported by healthy loan growth and improvement in asset quality while NII growth was soft as margin contracted 15bp QoQ.
The Current price of CBK is less than it's intrinsic value, which makes it a good time to consider, as stock is not in overbought zone. I believe that this stock be added to one's portfolio for long term, as it has high value unlocking potential remaining in coming days. One can consider the levels marked in the chart and follow strict discipline with it.

2022年11月10日

註釋

The FIIs and DIIs have increased their stake this quarter (Sept 22). The EPS jumped from Rs.12 the last qtr to Rs. 15 this qtr.
The stock has achieved Target 1 (Rs. 250) and Target 2 (Rs. 290) and is currently near to its Target 3 (Rs.320). I had recommended this stock when it was around Rs. 240.
Canara Bank has delivered excellent results and will move towards 400 by May 2023. Asset quality improved. But be cautious about short-term fluctuations.