Buy Bank of Baroda, target price Rs 107: LKP Securities

LKP Securities has buy call on with a target price of Rs 107. The current market price of Bank of Baroda is Rs 82.55 Time period given by analyst is one year when Bank of Baroda price can reach defined target.
Bank of Baroda, incorporated in the year 1911, is a banking company (having a market cap of Rs 42560.31 Crore).

Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 23762.09 Crore, up 7.66 % from last quarter Total Income of Rs 22070.52 Crore and up 5.19 % from last year same quarter Total Income of Rs 22589.84 Crore. The bank reported net profit after tax of Rs -740.79 Crore in latest quarter.

Investment Rationale
The brokerage expects BOB to post a ROA/ROE of 0.6%/8.7% by FY23E led by stable balance sheet growth along with higher PCR and steady asset quality. It values the standalone bank at PBV of 0.8xFY23E Adj. BVPS of Rs 134 to arrive at a price target of Rs 107.
Promoter/FII Holdings
Promoters held 63.97 per cent stake in the company as of the fourth quarter ending March 31, 2021, while FIIs held 6.89 per cent, DIIs 15.52 per cent and public & others 13.62 per cent.

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