Buy Bank of Baroda, target price Rs 220: Prabhudas Lilladher

Prabhudas Lilladher has buy call on Bank of Baroda with a target price of Rs 220. The current market price of Bank of Baroda is Rs 180.75.

Bank of Baroda, incorporated in the year 1911, is a banking company (having a market cap of Rs 93110.38 Crore).

Bank of Baroda key Products/Revenue Segments include Interest & Discount on Advances & Bills, Income From Investment, Interest and Interest On Balances with RBI and Other Inter-Bank Funds for the year ending 31-Mar-2021.

Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 26320.49 Crore, up 21.99 % from last quarter Total Income of Rs 21576.76 Crore and up 19.65 % from last year same quarter Total Income of Rs 21998.76 Crore. The bank has reported net profit after tax of Rs 3400.47 Crore in latest quarter.

Investment Rationale
The brokerage has recently raised FY23Eearnings by 8% for BoB, however, with asset quality risks abating and steady credit growth outlook, there is likelihood of further earnings upgrade.

Promoter/FII Holdings
Promoters held 63.97 per cent stake in the company as of 30-Sep-2022, while FIIs owned 8.23 per cent, DIIs 18.5 per cent.